Nations Leasing, the leasing arm of Nations Trust Bank PLC recently launched the ‘Nations Variable Lease’ - an innovative new variable lease product.

The newly launched Nations Variable Lease is structured to reflect current market interest rates. NTB’s Deputy General Manager Leasing Keshini Jayawardena commenting on the launch said, “In this era of high interest rates, traditional financing products do not always best serve the customer. Fixed term leases lock customers into a fixed interest rate and a fixed repayment period while floating rate loans mean that when the interest rates move, the amount of the monthly repayment changes, making cash planning difficult”. The Nations Variable Lease has been structured in order to provide customers with a clear advantage in managing their finances.

Speaking further Ms Jayawardena added “the Nations Variable Lease is linked to a market interest rate, allowing customers to obtain a medium term funding line that will move in line with the prevalent market rates. However, rather than changing the monthly payment amount, the change will be reflected in the tenure of the lease. In the event the benchmark rates decline, the customers will be able to pay off his lease in a shorter period, while in a rising interest rate scenario the number of rentals may increase, but the monthly payment amount will not increase.”

This product has been structured in a manner that is convenient to the customer. Adjustments will be made on a quarterly basis having regard to movement of the 3-month SLIBOR/Gross Treasury Bill rate, and customers will be advised in writing of their remaining number of rentals.

NTB Chief Executive Officer and Director Zulfiqar Zavahir said: “Nations Trust Bank has always had a firm commitment in delivering innovative services and products that add value to our customers. The launch of the Nations Variable Lease further reiterates this. We are indeed proud to include yet another value added product to our growing portfolio of services to our valued customers.”

In addition to the Nations Variable Lease, the Bank’s range of leasing products also include the Nations Fixed Term Lease, Nations Professional Lease for executives and professionals, and the Nations Hire Purchase Lease.

Nations Trust Bank’s leasing arm has branches in Negombo, Bandarawela and Kuliyapitiya as well as Leasing Counters within the Nations Trust Bank branches in Kandy, Kohuwala, Kiribathgoda, Kurunegala and Panadura.