A letter of credit, or "credit letter" is a letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. In the event that the buyer is unable to make a payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase. It may be offered as a facility.
Due to the nature of international dealings, including factors such as distance, differing laws in each country, and difficulty in knowing each party personally, the use of letters of credit has become a very important aspect of international trade.
This rising demand has led to the emergence of attractive loan offers from numerous banks and financial institutions, such that, you are spoilt for choice. The following are some key facts you need to keep in mind when shopping around for a Letter of Credit.
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This is a direct payment method in which the issuing bank makes the payments to the beneficiary. In contrast, a standby letter of credit is a secondary payment method in which the bank pays the beneficiary only when the holder cannot.
This kind of letter allows a customer to make any number of draws within a certain limit during a specific time period.
For those going abroad, this letter will guarantee that issuing banks will honor drafts made at certain foreign banks.
A confirmed letter of credit involves a bank other than the issuing bank guaranteeing the letter of credit. The second bank is the confirming bank, typically the seller’s bank.
Any salaried, self-employed or professional Public and Privat companies, Government sector employees including Public Sector is eligible for a car loan.
To avail Letter of Credit be an individual aged 21 to 65 years
Sholud be as per loan request
Applicant should have the bank specified credit score.
Now apply for a Letter of Credit online, All you need to do is provide your details below application form.
