Who issues backend Buyers Credit (SBLC)?
It is issued by importer bank on behalf of importer to get funding from Overseas Bank.
| Bank Name | Min Interest Rate | Max Loan (Lacs) | Letter of Undertaking charge | Max Tenure (Months) | |
|---|---|---|---|---|---|
|
5.10%
|
1500
|
1%
|
12
|
|
|
5.00%
|
1500
|
1%
|
12
|
|
.png)
|
5.50%
|
1000
|
1%
|
12
|
|
|
5.20%
|
1500
|
1%
|
12
|
|
|
5.10%
|
1500
|
1%
|
12
|
|
|
5.00%
|
1500
|
1%
|
12
|
|
|
5.15%
|
1500
|
1%
|
12
|
|
|
5.10%
|
1500
|
1%
|
12
|
|
|
5.15%
|
1000
|
1%
|
12
|
|
|
5.15%
|
1000
|
1%
|
12
|
|
|
5.00%
|
1000
|
1%
|
12
|
|
|
5.10%
|
1500
|
1%
|
12
|
|
|
5.15%
|
1000
|
1%
|
12
|
|
|
5.05%
|
1500
|
1%
|
12
|
|
|
5.10%
|
1000
|
1%
|
12
|
|
|
5.00%
|
1000
|
1%
|
12
|
|
|
5.00%
|
1500
|
1%
|
12
|
|
|
5.00%
|
1500
|
1%
|
12
|
|
|
5.10%
|
1500
|
1%
|
12
|
|
|
5.05%
|
1500
|
1%
|
1%
|
|
|
5.10%
|
1500
|
1%
|
12
|
|
|
5.15%
|
1500
|
1%
|
12
|
|
|
5.20%
|
1500
|
1%
|
12
|
|
|
5.00%
|
1500
|
1%
|
12
|
|
|
5.10%
|
1500
|
1%
|
12
|
|
|
5.00%
|
1500
|
1%
|
12
|
|
.png)
|
5.10%
|
1500
|
1%
|
12
|
|
|
5.00%
|
1500
|
1%
|
12
|
|
| Bank Name | Min Interest Rate | |
|---|---|---|
|
|
5.10% |
|
|
|
5.00% |
|
|
|
5.50% |
|
|
|
5.20% |
|
|
|
5.10% |
|
|
|
5.00% |
|
|
|
5.15% |
|
|
|
5.10% |
|
|
|
5.15% |
|
|
|
5.15% |
|
|
|
5.00% |
|
|
|
5.10% |
|
|
|
5.15% |
|
|
|
5.05% |
|
|
|
5.10% |
|
|
|
5.00% |
|
|
|
5.00% |
|
|
|
5.00% |
|
|
|
5.10% |
|
|
|
5.05% |
|
|
|
5.10% |
|
|
|
5.15% |
|
|
|
5.20% |
|
|
|
5.00% |
|
|
|
5.10% |
|
|
|
5.00% |
|
|
|
5.10% |
|
|
|
5.00% |
|
This type of facility is generally offered to importer for the purpose to finance their capital goods wherein overseas lender such as financial institutions aid to support them. These credits are preferred by international trading buyers as it provides the accessibility to purchase goods at lower rates as compared to purchasing via domestic. Lender finance to those buyers who purchase large order with minimal risk.
Eligibility Criteria depends on various factors like age of individual, repayment history, business sales/turnover& Creditworthiness ...etc.
Note: - You can avail up to 85% of contract value as a loan amount
There are few factors that generally affects Eligibility Criteria as given below: -
Credit History: - Lenders are always ready to fund you, but the major reason for not funding all is that will you able to repay it? Therefore, they look at your past credit history to ensure you future commitments of repayment.So, if there any default payment found your eligibility level get lower.
Due to rejection of previous loan application: - As the factor itself cleared due to rejection of previous loan application, your new loan application gets affected as applying for multiple times, it will lower your credit score which led to reduces the eligibility chances.
To increase loan against property eligibility, you need to consider points as given below, this will aid you in increasing your eligibility level: -
Repay existing loan: - Lender check while going through your loan application that you are having any existing loan as it will reduces your debt-to-income ratio. Therefore, try to close it as much as earlier before applying for new loan.
Build a strong credit record: - A strong credit record helps you in getting loan easier & aid in evaluating credit risk, for that you are required to do payment on timely manner as it will enhance your eligibility.
Who issues backend Buyers Credit (SBLC)?
It is issued by importer bank on behalf of importer to get funding from Overseas Bank.
What importer banks will assure in Buyers Credit?
Importer banks will take responsibility for the money to be paid in case importers fail to make payment to exporters.
What is the cost involved in Buyers Credit?
Generally, Interest Rates are common cost applicable on any loan with that other cost are involved such as LIBOR rates, SWIFT charges & issuing SBLC charges.
Do Overseas Banks require KYC Process?
Yes, it's important Overseas Banks used to follow this process as per its norms, one needs to complete this KYC process.
What is Buyers Credit?
It's a short-term loan offered to buyers from overseas banks to purchase goods at lower rates compared to usual rates. Even exporters are guaranteed their payment will be paid on time without any default taking place.
What are the benefits of Buyers Credit?
This facility enables buyers to purchase goods at a lower rate with an extending date of making payment to exporter. Also, buyer get the chances to negotiate better discounts & avail the credit facility.
How Buyers Credit works on?
Importers enter into agreement with suppliers for import goods wherein financial institutions play an important role in providing a line of credit with Overseas Banks to help. Overseas banks pay directly to supplier before the due date & the buyer pay to Overseas Bank as per the commitments.
How to apply Buyers Credit online?
It's easy to apply just submit your request letter through online or offline by nearest bank & fill the application form with correct values, make sure you carry all the necessary documents.
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CA Vikas Jain - Chief Advisor
Mr. Vikas Jain is a reputed Chartered Accountant possessing in-depth understand...
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