Hire Purchase

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Hire Purchase is a system through which a person hires the asset from seller for a time period by paying installments and can own the asset once last installment is paid at the end of contract. There are generally 3 parties involved in the whole hire purchase transaction.
HIRE VENDOR / SELLER – One who sells the asset to Hirer.
FINANCING COMPANY – The link of payment between seller and purchaser. Pays amount to the seller and accepts installments from hirer.
HIRE PURCHASER / HIRER – One who purchases the asset from Vendor.
OWNERSHIP & POSSESSION - Hirer will immediately get possession of the asset after making down-payment but ownership will remain with the seller till the last installment is paid.
INSTALLMENT - Through Hire Purchase system, Hirer can make payment of purchased asset’s price in installment over an agreed period.
RETURN OF ASSET – The Hirer has the right to return the asset, before end of the agreement and stop making future payment.
TRANSFER OF ASSET – Hirer cannot transfer or sell the asset to another party until the last installment is made.
DEFAULT IN PAYMENT – In case the hirer defaults on any installment payment, the seller is entitled to take away the asset with him.
ASSET INVOLVED – Car, Bikes, Computer, Electrical Goods, Furniture, Machinery Equipment, Refrigerator etc.
DOWNPAYMENT – Generally downpayment ranges between 15 – 20% of the purchase price.

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1. DEVTECH FINANCE FINANCIAL SERVICES HIRE PURCHASE (MEANING,PROCESS,AGREEMENT AND PARTIES INVOLVED)

2. HIRE PURCHASE INTRODUCTION - Hire Purchase is a system through which a person hires the asset from seller for a time period by paying installments and can own the asset once last installment is paid at the end of contract . There are generally 3 parties involved in the whole hire purchase transaction. HIRE VENDOR / SELLER – One who sells the asset to Hirer. FINANCING COMPANY – The link of payment between seller and purchaser. Pays amount to the seller and accepts installments from hirer. HIRE PURCHASER / HIRER – One who purchases the asset from Vendor. OWNERSHIP & POSSESSION - Hirer will immediately get possession of the asset after making down-payment but ownership will remain with the seller till the last installment is paid.

3. HIRE PURCHASE INSTALLMENT - Through Hire Purchase system, Hirer can make payment of purchased asset’s price in installment over an agreed period . RETURN OF ASSET – The Hirer has the right to return the asset, before end of the agreement and stop making future payment. TRANSFER OF ASSET – Hirer cannot transfer or sell the asset to another party until the last installment is made. DEFAULT IN PAYMENT – In case the hirer defaults on any installment payment, the seller is entitled to take away the asset with him. ASSET INVOLVED – Car, Bikes, Computer, Electrical Goods, Furniture, Machinery Equipment, Refrigerator etc. DOWNPAYMENT – Generally downpayment ranges between 15 – 20% of the purchase price.

4. HIRE PURCHASE PROCESS

5. HIRE PURCHASE PROCESS

6. HIRE PURCHASE AGREEMENT The asset involved in hire-purchase agreement. The retail price and hire purchase price of asset. Number of installments and date of each installment. N ame and addresses of all parties involved in agreement. Cost involved – documentation fee, interest, penalty fees.

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