• The NBFCs have been accounting for a major portion of Equipment Financing in India. The main advantage possessed by these entities has been their processing speed. However, the costs of financing were high on account of the high cost of capital of these entities. With the liberalization of the financial sector, a number of NBFCs commenced operations attracted by the high spreads available in the business.
• In the past few years, equipment financing has witnessed immense competition with a number of banks, financial institutions and state financial institutions also entering the fray. The competition in the sector, often indiscriminate financing to achieve growth combined with the prolonged recession in the economy led to a number of rising defaults and poor asset quality.
• Since high cost public deposits (of a shorter maturity than their assets) were the primary source of financing the operations of these NBFCs, they were unable to service their obligations in many cases leading to defaults and loss of public confidence. This lead to a shake out with a large number of NBFCs closing operations.
• At the same time, a number of reputed multinational financial entities have set up their equipment financing operations. Banks (both public sector and private) have also expanded their operations in the area. Consequently, at present, the major players in the equipment-financing sector include banks, large NBFCs (including the Indian arms of multinationals) and state financial institutions.

Introduction
Characteristics of Equipment Financing
Procedure for availing Equipment Finance

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