• 9863020202    
  • contact@financeseva.in

LC Discounting

• Get access to business cash flow
• No impact on balance sheet
• Quick processing
Enquiry Form
LC Discounting
Bank Name Interest Rate Range (%) Processing Fee (%) Maximum Loan (Lacs) Maximum Tenure (Month)
Bank of Baroda
8%
1%
Bank of India
9%
1%
Bank of Maharashtra
10%
1%
Canara Bank
8%
1%
Central Bank of India
9%
1%
Indian Bank
10%
1%
Indian Overseas Bank
8%
1%
Punjab & Sind Bank
9%
1%
Punjab National Bank
10%
1%
State Bank of India
8%
1%
UCO Bank
9%
1%
Union Bank of India
10%
1%
United Bank of India
10%
1%
Axis Bank Ltd.
8%
1%
Bandhan Bank Ltd.
9%
1%
City Union Bank Ltd.
10%
1%
DCB Bank Ltd.
8%
1%
Digibank (DBS)
9%
1%
Federal Bank Ltd.
10%
1%
HDFC Bank Ltd
8%
1%
ICICI Bank Ltd.
9%
1%
IDFC First Bank
10%
1%
IndusInd Bank
8%
1%
Kotak Mahindra Bank
9%
1%
RBL Bank Ltd.
10%
1%
South Indian Bank Ltd.
9%
1%
YES Bank Ltd.
10%
1%
Bank Name Min Interest Rate
Bank of Baroda

8%

Bank of India

9%

Bank of Maharashtra

10%

Canara Bank

8%

Central Bank of India

9%

Indian Bank

10%

Indian Overseas Bank

8%

Punjab & Sind Bank

9%

Punjab National Bank

10%

State Bank of India

8%

UCO Bank

9%

Union Bank of India

10%

United Bank of India

10%

Axis Bank Ltd.

8%

Bandhan Bank Ltd.

9%

City Union Bank Ltd.

10%

DCB Bank Ltd.

8%

Digibank (DBS)

9%

Federal Bank Ltd.

10%

HDFC Bank Ltd

8%

ICICI Bank Ltd.

9%

IDFC First Bank

10%

IndusInd Bank

8%

Kotak Mahindra Bank

9%

RBL Bank Ltd.

10%

South Indian Bank Ltd.

9%

YES Bank Ltd.

10%

₹ 10L
₹ 50L
₹ 1C
₹ 1.5C
₹ 2C
₹ 2.5C
₹ 3C
%
1%
5%
10%
15%
20%
25%
30%
1
10
20
30
40
50

Loan EMI

Total Interest

Total Payment

Eligibility Criteria

What you mean by LC Discounting Eligibility Criteria?

LC discounting are short-term facility is offered by banks which aid to reduces applicable charges levied on exporter bill invoice by purchasing the bills or documentation of exporter once he/she successfully done the required payment. However, you need to check criteria to avail this facility.

LC Discounting Eligibility Criteria

Usually, LC Discounting Eligibility Criteria depends on various factors like age of applicant, monthly salary or business income of co-applicant & residency..etc.

  • • Age Limit of Individuals – 22 to 65 years of age
  • • Good financial statement
  • • 750 above Credit score
  • • Nationality - Resident of Indian

Documents Required

  • Individual
  • Prop Firm
  • Partnership Firm-LLP
  • PVT. LTD.
  1. Photographs 2
  2. PAN Card Copy
  3. AADHAR CARD + PASSPORT
  4. ADDRESS PROOF IF RENTED ALSO REQUIRED PERMANENT ADDRESS PROOF
  5. LAST 3 YEARS FORM -16, ITR WITH COMPUTATION OF INCOME IF FILE
  6. LAST 1 YEAR BANK STATEMENT - SALARY ACCOUNT
  7. LOAN SCHEDULE & SANCTION LETTER (IF RUNNING
  8. COMPLETE PROPERTY PAPERS WITH CHAIN & MAP +ATS
  9. PROCESSING FEE CHEQUE IN FAVOUR OF BANK
  10. LAST 3 MONTHS SALARY SLIP + APPOINTMENT LETTER
  1. PHOTOGRAPH BOTH
  2. PAN CARD CLEAR COPY PROPRIETOR.
  3. ADD PROOF (PASS PORT, VOTER ID CARD) PROPRIETOR.
  4. OFFICE ADDRESS PROOF LATEST. (ELECTRICITY BILL, TELEPHONE BILL)
  5. FIRM REGISTRATION CERTIFICATES & GST REGISTRATION COPY
  6. LAST 1 YEAR GST RETURN COPY
  7. FIRM 3 YEARS ITR COMPUTATION, PROFIT LOSS A/C, BALANCE-SHEET, TAX AUDIT REPORT, ALL SCHEDULED & ANNEXURE
  8. PROVISIONAL FINANCIAL AY 2019-20
  9. BANK ACCOUNTS (CURRENT ACCOUNT, CC ACCOUNT, OD ACCOUNT LAST 1 YEAR UPDATED.
  10. 6 MONTH SAVING ACCOUNT STATEMENT UPDATED (PROPRIETOR)
  11. IF RUNNING ANY LOAN PLEASE PROVIDE SANCTION LETTER AND REPAYMENT SCHEDULED
  12. AGREEMENT TO SELL COPY
  13. PROPERTY PAPERS WITH CHAIN SANCTION MAP
  1. PHOTOGRAPH PARTNERS
  2. PAN CARD - COMPANY, ALL PARTNERS
  3. ADD PROOF - ALL PARTNERS (PASS PORT, VOTER I CARD ,PAN ,ADHAAR)
  4. FIRM ADD PROOF- LATEST ANY UTILITY BILL.
  5. PARTNERSHIP DEED COPY
  6. GST CERTIFICATE
  7. GST Return last 1 years
  8. 3 YEAR COMPANY ITR COI P/L A/C BALANCESHEET + AUDIT REPORT 3CB 3CD, ALL ANNEXXURS, SCHEDULED WITH C.A.CERTIFIED.
  9. PROVISIONAL FINANCIAL AY 2019-20
  10. 3 YEAR.ALL PARTNER INDIVIDUALS ITR + COMPUTATION
  11. FIRM ALL A/C BANK STATEMENT 1 YEAR UPDATED
  12. ALL PARTNER SAVING A/C STATEMENT 6 MONTH.
  13. IF RUNNING ANY LOAN – LATEST SANCTION LETTER + TRACK RECORDS OR REPAYMENT SCHEDULED.
  14. Agreement To Sell copy
  15. PROPERTY PAPERS COMPLETE CHAIN WITH MAP
  1. ALL DIRECTORS PHOTOGRAPH
  2. CLEAR PAN CARD - COMPANY AND ALL DIRECTORS.
  3. ADDRESS PROOF – COMPANY AND DIRECTORS.
  4. LIST OF DIRECTOR & SHARE HOLDER WITH CA CERTIFIED AS ON DATE
  5. MEMORANDOM
  6. ORDER IN HAND AND COMPLETE COPY (if applicable)
  7. GST, SALE, VAT AND SSI REGISTRATION CERTIFICATE.
  8. 1 YEAR GST RETURNS
  9. ALL DIRECTORS INDIVIDUALS ITR & COMPUTATION LAST 3 YEARS.
  10. LAST 3 YEARS COMPLETE FINANCIAL WITH TAX AUDIT REPORT AND ANNEXURE.
  11. PROVISIONAL FINANCIAL FY 2019-20 OR MONTH WISE SALE FIGURE LAST 1 YEAR
  12. COMPANY ALL BANK ACCOUNT STATEMENT 1 YEAR UPDATED.
  13. ALL DIRECTORS SAVING A/C STATEMENT 6 MONTH.
  14. IF RUNNING ANY LOAN – LATEST SANCTION LETTER AND REPAYMENT SCHEDULED.
  15. AGREEMENT TO SELL COPY
  16. PROPERTY PAPERS COMPLETE CHAIN WITH SANCTION MAP
Frequently Asked Questions

How letter of credit discounting works on?

  • Buyers approach the issuing bank to get LC
  • Seller used to submit required document to get discount
  • As per the terms money should be used to order or purchase goods only
  • Finally, the amount will be credited to seller account

Is getting a lc discounting is good or bad?

It considered to be good way to strengthen business liquidity.

What is the current interest rates of lc discounting?

LC discounting charges starting at 6.00% onwards.

Who are eligible for lc discounting?

Any company whether it’s a proprietorship/private limited/partnership company. Business minimum continuity should be 5 years & turnover should be 100 crores.

What are the document required for lc discounting?

  • Bill of exchange
  • Commercial invoice and packing list
  • Transport documents
  • Delivery challan
  • Acceptance from issuing bank
  • Discounting request letter

What are the key features of letter of credit discounting?

Through the facility seller get able to lower the risk & respectively increases payment guarantee. 

This type of advance payment helps in getting working capital which enhance good quality took place as the cash flow of business is strong.

What is lc discounting?

Letter of credit discounting is an ideal way of financing. The various financial institution offers facility where it provides the guarantee of money be paid to seller if buyer default to pay the sum of amount.

What are the types of lc discounting?

Usually, there are 5 types of letter of credit discounting as below given: -

  • Revocable
  • Irrevocable
  • Transferable
  • Confirmed
  • Unconfirmed

Related Topics

credit-report
business Credit Report
Improve Credit Report
Get Financial Statement

Join our Network of Happy Customer

CA Vikas Jain - Chief Advisor

Mr. Vikas Jain is a reputed Chartered Accountant possessing in-depth understand...

Read More
CA Vikas Jain

CA Vikas Jain - Chief Advisor

Mr. Vikas Jain is a reputed Chartered Accountant possessing in-depth understand...

Read More

If you want me & my team at financeseva to help you in getting Best Financial Services, Just Book a Free Call