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LC Sale Bill Discounting @6.85% Onwards

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LC Sale Bill Discounting
Bank Name Interest Rate Range (%) Document Handling Charge Discripency Charge
Bank of Baroda
6.50% - 7.50%
1500
500
Canara Bank
7.50% - 8.50%
1500
500
Central Bank of India
7.50% - 8.50%
1500
500
7.50% - 8.50%
1500
500
Indian Bank
7.00% - 8.00%
1500
500
Indian Overseas Bank
7.50% - 9.00%
1500
500
Punjab & Sind Bank
8.00% - 9.00%
1500
500
Punjab National Bank
7.00% - 8.00%
1500
500
State Bank of India
6.50% - 7.50%
1500
500
UCO Bank
8.00% - 9.00%
1500
500
Union Bank of India
7.50% - 8.50%
1500
500
United Bank of India
8.00% - 9.00%
1500
500
Axis Bank Ltd.
6.50% - 7.00%
1000
500
Bandhan Bank Ltd.
7.00% - 9.00%
1000
500
City Union Bank Ltd.
8.50% - 9.50%
1000
500
DCB Bank Ltd.
7.50% - 8.50%
1000
500
Digibank (DBS)
7.00% - 8.00%
1000
500
Federal Bank Ltd.
7.50% - 9.00%
1000
500
HDFC Bank Ltd
6.00% - 7.00%
1000
500
ICICI Bank Ltd.
6.00% - 7.00%
1000
500
IDFC First Bank
7.50% - 9.00%
1000
500
IndusInd Bank
7.50% - 9.50%
1000
500
Kotak Mahindra Bank
6.00% - 7.00%
1000
500
RBL Bank Ltd.
7.50% - 8.50%
1000
500
South Indian Bank Ltd.
8.00% - 9.00%
1000
500
YES Bank Ltd.
8.00% - 9.00%
1000
500
Bank Name Min Interest Rate
Bank of Baroda

6.50% - 7.50%

Canara Bank

7.50% - 8.50%

Central Bank of India

7.50% - 8.50%

7.50% - 8.50%

Indian Bank

7.00% - 8.00%

Indian Overseas Bank

7.50% - 9.00%

Punjab & Sind Bank

8.00% - 9.00%

Punjab National Bank

7.00% - 8.00%

State Bank of India

6.50% - 7.50%

UCO Bank

8.00% - 9.00%

Union Bank of India

7.50% - 8.50%

United Bank of India

8.00% - 9.00%

Axis Bank Ltd.

6.50% - 7.00%

Bandhan Bank Ltd.

7.00% - 9.00%

City Union Bank Ltd.

8.50% - 9.50%

DCB Bank Ltd.

7.50% - 8.50%

Digibank (DBS)

7.00% - 8.00%

Federal Bank Ltd.

7.50% - 9.00%

HDFC Bank Ltd

6.00% - 7.00%

ICICI Bank Ltd.

6.00% - 7.00%

IDFC First Bank

7.50% - 9.00%

IndusInd Bank

7.50% - 9.50%

Kotak Mahindra Bank

6.00% - 7.00%

RBL Bank Ltd.

7.50% - 8.50%

South Indian Bank Ltd.

8.00% - 9.00%

YES Bank Ltd.

8.00% - 9.00%

₹ 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 sale bill Discounting Eligibility Criteria?

Generally, LC sale bill discounting facility are offered by banks on seller issuing. Where seller required to submit mandatory documents or invoice bill for discounting on applicable charges. Even any company can able to issue, only them are eligible to avail this facility who match some requirements.

LC sale bill Discounting Eligibility Criteria

Usually, LC sale bill Discounting Eligibility Criteria depends on several factors like age of applicant, 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

Any business that supplies goods/services to large blue-chip companies can avail the bill discounting services provided by Finance seva. Eligibility and amount of discounting is governed by the creditworthiness of the business and therefore they should be willing to share their financial information and other related documents.

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. BRIEF HISTORY OF COMPANY
  11. COPY OF ISO 9001:2000 CERTIFICATE / FACTORY ACT REGISTRATION /IEC CODE REGISTRATION PARTY WISE SALES IN LAST 12 MONTHS
  12. RECENT TRAIL BALANCE (INCLUDING CREDITORS & DEBTORS
  13. LATEST CUTOMER AGING –LISTING ALL THE CUSTOMERS (NOT ONLY THE PROPOSED FACTORALE ONES )
  14. FOR EACH PROPOSED FACTORABLE CUSTOMER => INVOICE + PURCHASE ORDER + SHIPPING DOCUMENT /POD + REMITTANCE ADVICE . THE SETS OF DOCUMENTS MUST RELATES TO THE SAME INVOICE . AT LEAST 6 SETS (TRANSACTION) RELATES TO DIFFERENT MONTHS FOR EACH PARTY
  15. 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
  14. BRIEF HISTORY OF COMPANY
  15. COPY OF ISO 9001:2000 CERTIFICATE / FACTORY ACT REGISTRATION /IEC CODE REGISTRATION PARTY WISE SALES IN LAST 12 MONTHS
  16. RECENT TRAIL BALANCE (INCLUDING CREDITORS & DEBTORS
  17. LATEST CUSTOMER AGING –LISTING ALL THE CUSTOMERS (NOT ONLY THE PROPOSED FACTORY ONES )
  18. FOR EACH PROPOSED FACTORABLE CUSTOMER => INVOICE + PURCHASE ORDER + SHIPPING DOCUMENT /POD + REMITTANCE ADVICE . THE SETS OF DOCUMENTS MUST RELATES TO THE SAME INVOICE . AT LEAST 6 SETS (TRANSACTION) RELATES TO DIFFERENT MONTHS FOR EACH PARTY
  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
  16. RECENT TRAIL BALANCE (INCLUDING CREDITORS & DEBTORS
  17. LATEST CUSTOMER AGING –LISTING ALL THE CUSTOMERS (NOT ONLY THE PROPOSED FACTORY ONES )
  18. FOR EACH PROPOSED FACTORABLE CUSTOMER => INVOICE + PURCHASE ORDER + SHIPPING DOCUMENT /POD + REMITTANCE ADVICE . THE SETS OF DOCUMENTS MUST RELATES TO THE SAME INVOICE . AT LEAST 6 SETS (TRANSACTION) RELATES TO DIFFERENT MONTHS FOR EACH PARTY
  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
  17. BRIEF HISTORY OF COMPANY
  18. COPY OF ISO 9001:2000 CERTIFICATE / FACTORY ACT REGISTRATION /IEC CODE REGISTRATION PARTY WISE SALES IN LAST 12 MONTHS
  19. RECENT TRAIL BALANCE (INCLUDING CREDITORS & DEBTORS
  20. LATEST CUTOMER AGING –LISTING ALL THE CUSTOMERS (NOT ONLY THE PROPOSED FACTORALE ONES )
  21. BRIEF HISTORY OF COMPANY
  22. FOR EACH PROPOSED FACTORABLE CUSTOMER => INVOICE + PURCHASE ORDER + SHIPPING DOCUMENT /POD + REMITTANCE ADVICE . THE SETS OF DOCUMENTS MUST RELATES TO THE SAME INVOICE . AT LEAST 6 SETS (TRANSACTION) RELATES TO DIFFERENT MONTHS FOR EACH PARTY
Frequently Asked Questions

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.

How letter of credit discounting works on?

Sellers request a letter of credit from buyer before the goods get delivered, seller wants the guarantee of money to pay on time without any default. Follow Below mentioned workflow of lc discounting: - 

  • 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

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.

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 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

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

Related Topics

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