Airnetz Aviation finance loan lease for private jet or helicopter aircraft in India NSOP Non scheduled Operator Permit Ministry of Civil Aviation Director General of civil aviation DGCA

1. Options for Financing / Loan / Lease for Private Jet or Helicopter in India
By Airnetz Aviation Private Limited
1. Domestic Banks :
a. Loan Tenure of 5-7 years. 10 Years in case of a best case possibility
b. 80-100% Loan To Value collateral required
c. Finance of 70-90% of the Project cost. Hence 80-100% of the aircraft cost
d. Rate of Interest is iBase + 4-5% . i.e. 14-16%
e. No RBI Approval Required
f. Asset can be claimed on the Balance sheet of the client
g. One Time Processing fee of 0.5-1%
2. International Banks (Capital Lease) :
a. Loan Tenure of 5-15 years.
b. Corporate Guarantee Required. Corporate should have sufficient net worth to
guarantee the aircraft
c. Finance of 70-100% of the Aircraft cost. (Loan to Value)
d. Rate of Interest is LIBOR + 5-7% i.e. 6- 8%
e. Prior RBI Approval is required
f. Asset can be claimed on the Balance Sheet of the Client.
g. A 10% with holding tax is applicable on all interest payments
h. Risk of Currency Fluctuation.
i. Hedging might or might not be compulsory
j. In the end turns out to be 10-12% on the rate of interest
k. One time Processing fee of 0.5-1%

2. 3. Foreign Currency Loan Through Domestic Banks
a. Same as Option 2 , except that it is processed through Domestic Bank.
b. Hence No RBI Approval required
c. Finance of 70-90% of the Aircraft Cost. (Loan to Value)
d. Rate of Interest is LIBOR + 6-9% . i.e. 7-10%
e. Corporate Guarantee is required. Additional Collateral maybe required.
f. Asset can be claimed on the Balance Sheet of the client
g. No with-holding tax is applicable
h. Risk of Currency fluctuation.
i. Hedging might or might not be compulsory
j. One time processing fee of 0.75-1.5%
k. In the end, turns out to be 11-13% on the rate of interest
4. Operating Lease through International Bank or Financial Institution
a. Finance of 80-100% of the Aircraft Cost. (Loan to Value)
b. Asset CAN NOT BE claimed on the Balance sheet.
c. Aircraft has to be returned at the end of loan tenure or continued leasing with renewed
term sheet.
d. Rate of Interest is 9-11%
e. A very small processing fee of (0-0.5% ) might be charged.
f. No withholding tax is applicable
g. RBI Approval is NOT Required
h. Corporate Guarantee might NOT be required.
i. Additional collateral might NOT be required.
j. Hedging is optional.
k. Risk of currency fluctuation.
Regards,
Omkar Mestry
Manager – Charter Services
Airnetz Aviation Pvt. Ltd.
302-303 3rd Floor Samajdeep Adukia Lane Kandivali West Mumbai – 67
Cell : +91 99 30 40 30 19
Office : +91 22 2807 9043
Fax : +91 22 39167143
Email : omkar@airnetz.com / info@airnetz.com
Web : www.airnetz.com