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Letter of Credit@ 1.00% per annum commission interest Onwards

• Simplified processing
• Lowest processing fee
• Collateral free loan is available
Enquiry Form
Letter of Credit
Bank Name FD Margin Commission
State Bank of India
15.00%
1.00%-2.00%
YES Bank Ltd.
15.00%
1.00%-2.00%
RBL Bank Ltd.
20.00%
1.00%-2.00%
South Indian Bank Ltd.
15.00%
1.00%-2.00%
UCO Bank
15.00%
2.00%-3.00%
Union Bank of India
15.00%
1.00%-2.00%
United Bank of India
15.00%
2.00%-3.00%
Punjab National Bank
15.00%
2.00%-3.00%
Punjab & Sind Bank
20.00%
2.00%-3.00%
Indian Bank
15.00%
2.00%-3.00%
Indian Overseas Bank
15.00%
2.00%-3.00%
ICICI Bank Ltd.
15.00%
1.00%-2.00%
Federal Bank Ltd.
20.00%
2.00%-3.00%
HDFC Bank Ltd
15.00%
1.00%-2.00%
Axis Bank Ltd.
15.00%
1.00%-2.00%
Bandhan Bank Ltd.
25.00%
2.00%-3.00%
Bank of Baroda
15.00%
1.00%-2.00%
Bank of India
15.00%
1.00%-2.00%
Bank of Maharashtra
20.00%
2.00%-3.00%
Canara Bank
15.00%
2.00%-3.00%
Central Bank of India
25.00%
2.00%-3.00%
25.00%
2.00%-3.00%
DCB Bank Ltd.
20.00%
2.00%-3.00%
Bank Name Key Features
State Bank of India
FD Margin

15.00%

YES Bank Ltd.
FD Margin

15.00%

RBL Bank Ltd.
FD Margin

20.00%

South Indian Bank Ltd.
FD Margin

15.00%

UCO Bank
FD Margin

15.00%

Union Bank of India
FD Margin

15.00%

United Bank of India
FD Margin

15.00%

Punjab National Bank
FD Margin

15.00%

Punjab & Sind Bank
FD Margin

20.00%

Indian Bank
FD Margin

15.00%

Indian Overseas Bank
FD Margin

15.00%

ICICI Bank Ltd.
FD Margin

15.00%

Federal Bank Ltd.
FD Margin

20.00%

HDFC Bank Ltd
FD Margin

15.00%

Axis Bank Ltd.
FD Margin

15.00%

Bandhan Bank Ltd.
FD Margin

25.00%

Bank of Baroda
FD Margin

15.00%

Bank of India
FD Margin

15.00%

Bank of Maharashtra
FD Margin

20.00%

Canara Bank
FD Margin

15.00%

Central Bank of India
FD Margin

25.00%

FD Margin

25.00%

DCB Bank Ltd.
FD Margin

20.00%

₹ 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 Letter of Credit Eligibility Criteria?

A letter of credit is a facility offered by banks & financial institutions guaranteeing the buyer that the seller will make payment on time, if suppose he/she fails to make payment. Therefore, Bank will cover the payments which needs to be made. Generally, there are various types of letter of credit offered for international traders. To use this facility, you will be required to meet few eligibility criteria.

Letter of Credit Eligibility Criteria

Letter of Credit Eligibility Criteria depends on various factors like age of individual, repayment history, business sales/turnover, total work experience & Creditworthiness ...etc.

Eligibility Criteria for Self-Employed

  • • Age Limit of Self –Employed Individuals - 24 to 65
  • • Must have good financial record
  • • Minimum Years of Business continuity –2- 5 Years

How Letter of credit process works?

Generally, letter of credit issued by bank it’s a kind of letter assuring the buyer that if suppose seller unable to make payment on given specific time. Then on behalf of seller, Bank will pay required amount to buyer.

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.BANK ACCOUNTS (CURRENT ACCOUNT, CC ACCOUNT, OD ACCOUNT LAST 1 YEAR UPDATED.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

What is the process to get letter of credit?

A letter of credit is issued by the importer in favour of the exporter, as it's verified & confirmed afterwards forwarded to the exporter. Once the exporter confirm can proceed for shipment of goods, Usually, a small documentation process is required in regards to confirming the bank & finally settling the payment is initiated.

What is the benefit of a letter of credit?

It gives you the relaxation to get paid anyhow whether the beneficiary falls to cover the sum amount then banks will pay the amount within the specified time period. Hence, you will benefitted from getting a letter of credit.

What is the disadvantage of letter of credit?

There are few disadvantage behind LC which needs to be considered like banks would impose strict terms as your supplied goods should be exactly named in agreement, additional various costs will be applicable at the time of issuing letter of credit.

What are the types of Letters of credit?

There are various types of letters of credit as given below: - 

  • Acceptance credit  
  • Transferable credit 
  • Untransferable credit 
  • Confirmed LC 
  • Unconfirmed LC 
  • Revocable credit 
  • irrevocable credit 
  • Green Clause LC 
  • Red Clause LC 
  • Back to back LC 
  • Standby LC 

What is letter of credit discounting?

Being a exporter you might be afraid whether you will be paid for shipping goods timely or not. To get the assurance of getting paid importer issue a letter of credit by banks as to show that he/she is capable to pay off & if suppose not then financial institution will take over the responsibility to pay you directly.

Why use letter of credit?

This facility helps to have smooth liquidity of business transactions & remove the financial blockage of unpaid bills to have good cash flow. It also provides protection for both seller and buyer.

Who issues letter of credit?

Usually, this type of facility is availed by importer bank, beneficiary with good credit history & financial record can get letter of credit.

How does a letter of credit work?

Banks give the guarantee of payment to the beneficiary, If the entity has any collateral or credit to pledge & get the facility utilized. A particular percentage is charged as a fee while availing the guarantee.

What is letter of credit?

Letter of credit are procured against pledging any securities & It acts as a promise wherein bank gives the surety of payment to seller be credited on time by buyer if he/she fail to pay then, bank will be responsible to repay the amount.

Related Topics

  • LETTER OF CREDIT BY BANKS

  • LETTER OF CREDIT BLOGS

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