FAQs

 Deposits
 

What is a term deposit?
A term deposit is a deposit held at a financial institution for a fixed amount of time, known as a term. When the money is deposited, the customer understands that the money is there for the pre-determined period which usually ranges from 1 month to 5 years. Typically, the money can only be withdrawn at the end of the period or earlier but with a penalty attached
What are the different types of interest rates offered?
AXYS Leasing currently offers fixed and variable interest rates on all its deposit range. Fixed interest rate deposits carry the same rate from the inception to the maturity of the deposit irrespective of changes in monetary policy. On the other hand, variable interest rate deposits carry an interest rate which fluctuates with changes in the Repo Rate. The rate applied to a deposit is usually in the form BDR + x.xx% (BDR: Base Deposit Rate)
Interest frequency
Interest rate payments are usually done at fixed intervals. These intervals are chosen by the client at the start of the deposit. These intervals range between the most frequent "Monthly" through "Quarterly", "Half-yearly", "Yearly" and to "Maturity"
Early encashment
As per its definition, a term deposit is held for a defined time period. However, a client may at its own discretion and at any time during the deposit term ask for a refund of its capital. The company will do its utmost to repay the client within 24 hours but depending on liquidity constraints, it reserves the right to charge a penalty fee upon early encashment.
Deposit renewal
10 days before the maturity of any deposit, AXYS Leasing will send a letter to the client informing him about the coming maturity and asking him for his renewal (or not) instructions. In any case, the client must return the original Deposit Certificate duly signed with his instructions.
Interest payment methods
Two interest modes of payment are currently supported by AXYS Leasing, namely cheque and direct credit. The latter is a preferred one as it eliminates the risk of loss through the post, and also any delay in accessing the funds.

 

Leases

What is a lease?
A lease is a legally binding contract defining the relationship between the lessor (Owner) and the lessee (renter). A typical lease contract spells out all the terms in the rental agreement including the length of time the lessee may use it and the condition in which it should be when returned to the lessor.

Two broad types of leases exist: Finance Lease & Operating Lease. Two broad types of leases exist:
Finance Lease & Operating Lease.

A finance lease is a type of lease whereby the lessee selects an asset which is purchased by the lessor. The lessee makes use of the asset during the term of the lease against payment of regular installments. The lessor recovers most or all of the cost of the asset plus interests from the installments paid by the lessee. At the end of the lease period, the lessee has the option (or obligation) to acquire the asset at a predetermined residual value.

An operating lease is a type of lease whereby the lessee "rents" an asset belonging to the lessor through the payment of regular rentals. An operating lease is usually shorter in duration compared to the useful life of the leased asset. At the end of the lease contract, the title of the asset stays with the lessor and the lessee returns the asset to him. The lessee has the option of renting another asset from the lessor under a new lease contract or to acquire the asset at its market value.
How long is the lease process?
Once AXYS Leasing has received all the documents that make up your lease request, the file is presented to the credit committee. Once approval is obtained and should you agree to the conditions of the lease, your contract is prepared together with all other documents within 24 hours. Once your contract is signed and the asset insured and properly registered, you can immediately take possession of the asset. The whole process, from the initial request to the delivery can take 3 business days.
What are the fees relative to a lease request?
Each lease request attracts fees, some of which are charged by the lessor and others are imposed by regulatory bodies (Registrar General, NTA, …) A Facility Fee of 1% is charged by the lessor for each lease request and a registration fee + stamp duty is charged by the Registrar General (http://www.gov.mu/portal/goc/registrar/file/regduty-0103.doc)
How should I insure the leased asset?
As per contract terms and conditions, each asset has to be insured for its full value during the whole lease duration. Depending on the type of asset leased, a specific insurance cover will be requested. (Example: for a car, a 'full comprehensive cover' is required whereas for an equipment, an 'all risk cover' is required)
What happens in case of an accident or a total loss?
First of all ensure that no one is hurt but in any case you should follow the current legislation in terms of police reporting and/or insurance requirements. You should rapidly inform AXYS Leasing of the situation so that we may follow-up with the insurance company. For the case of a finance lease, the insurance company issues a cheque to the order of AXYS Leasing and any excess amount paid by the insurance is refunded to the lessee.
What should I do if I want to sell my asset?
Should you wish to sell your asset, there are several aspects of the lease contract that needs to be considered, as well as possible VAT implications and registration duty charges on the asset. We recommend that you contact one of our front office staff for advice on the way forward.
Balloon payments & re-scheduling options
At any point in time during the lease period, a client may at his sole discretion make balloon payments to his lease account. Such payments usually have one of two effects: either reduce the existing monthly repayments over the same period or reduce the remaining period while keeping the same monthly instalments.