Document background
The Equipment Finance Agreement serves as a crucial financing instrument in the Indian market, enabling businesses to acquire necessary equipment without substantial upfront capital investment. This document is essential when companies seek to finance the purchase or lease of equipment through a financial institution, combining elements of secured lending and equipment utilization rights. The agreement must comply with Indian financial regulations and banking guidelines, particularly those established by the Reserve Bank of India. It includes detailed provisions for equipment identification, financing terms, security creation, maintenance requirements, and enforcement mechanisms. The document is structured to protect the interests of both the financer and the borrower while ensuring clear documentation of the financing arrangement and associated obligations.
