Leasing has grown by leaps and bounds in the eighties but it is estimated that hardly 1% of the industrial investment in India is covered by the lease finance against 40% in USA and 30% in UK and 10% in Japan. The leasing in India covers a wide variety of industries. As per a recent report of Equipment Leasing Association of India, leasing covers both the public and private sector in respect of financing of plant, machinery, vehicles, office equipment and computers etc. The prospects of leasing in India are good due to growing investment needs and scarcity of funds with public financial institutions. This type of lease finance is particularly suitable in India where a large number of small companies have emerged recently.