Letter of Credit (LC) ek banking instrument hai jisme buyer ke bank ki taraf se seller ko payment ki written guarantee di jaati hai — shart yeh hoti hai ki seller contract ke according documents submit kare.

Simple words me:
???? Bank beech me guarantee deta hai ki agar buyer payment na kare to bank karega — provided documents sahi hon.

 LC Kya Hota Hai?

Import-export trade me use hota hai

Buyer ka bank seller ko payment ki guarantee deta hai

Payment documents ke basis par hoti hai, goods ke basis par nahi

International trade me widely accepted instrument hai

LC mainly international trade rules ke under operate karta hai, jaise International Chamber of Commerce (ICC) ke rules (UCP 600).

 LC Kaise Kaam Karta Hai? (Process)

Buyer aur seller ke beech contract hota hai

Buyer apne bank se LC issue karwata hai

Bank seller ke bank ko LC forward karta hai

Seller goods ship karta hai

Seller required documents bank me submit karta hai

Documents compliant hone par payment release hoti hai

 LC Ke Types

Sight LC (Immediate Payment)

Usance LC (Credit Period ke baad Payment)

Revolving LC

Transferable LC

Back-to-Back LC

Standby LC

 LC Ke Merits & Demerits (Table Form)

 Key Benefits of LC

Secure international trade

Political & country risk reduction

Seller ko assured payment

Buyer ko shipment assurance

Working capital support (LC discounting)

Trade transparency

 Eligibility for LC

LC generally issue hota hai:

Registered business entity

Import Export Code (IEC) holder

Good banking track record

Sufficient credit limit sanctioned by bank

KYC compliance

Banks RBI guidelines follow karte hain (India me regulatory body: Reserve Bank of India).

 Documents Required for LC

IEC Certificate

GST Registration

PAN Card

Purchase Order / Sales Contract

Proforma Invoice

Financial Statements

Bank Application Form

KYC Documents

Collateral documents (if required)

Shipment ke time seller ko dene hote hain:

Commercial Invoice

Bill of Lading / Airway Bill

Packing List

Insurance Policy

Certificate of Origin

 LC Charges

LC Opening Charges

Swift Charges

Amendment Charges

Negotiation Charges

Confirmation Charges (if applicable)

Charges bank-to-bank vary karte hain.

 Top 10 FAQs on Letter of Credit (LC)

1? LC kya hota hai?

LC ek bank guarantee hoti hai jo seller ko payment assurance deti hai.

2? LC ka full form kya hai?

Letter of Credit.

3? LC aur Bank Guarantee me kya difference hai?

LC payment instrument hai, jabki Bank Guarantee default situation me activate hoti hai.

4? LC kitne din ke liye valid hota hai?

Contract terms ke hisaab se validity decide hoti hai.

5? LC me payment kab milti hai?

Documents compliant hone par — sight ya usance terms ke hisaab se.

6? LC me risk kis ka hota hai?

Agar documents compliant hain to payment risk bank ka ho jata hai.

7? Kya LC sirf international trade ke liye hota hai?

Nahi, domestic LC bhi hota hai.

8? LC discounting kya hota hai?

Seller LC ke against bank se immediate payment le sakta hai before due date.

9? LC charges kaun pay karta hai?

Generally buyer, lekin contract terms par depend karta hai.

 LC me sabse common problem kya hoti hai?

Document discrepancy — small errors bhi payment delay kar sakti hain.