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Stand by Letter of Credit

• Simplified processing
• Lowest processing fee
• Collateral free loan is available
Enquiry Form
Stand by Letter of Credit
Bank Name Interest Rate Range (%) Processing Fee (%) Maximum Loan (Lacs) Maximum Tenure (Month) Forclosure Charge
12
34555
32
36
23
Bank Name Key Features

12

₹ 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 Standby letter of credit Eligibility Criteria?

Standby LC is offered to seller in which a legal document prepared in terms of giving commitment to seller if the buyer falls to make payment, then we will take the responsibility to pay the amount.

Standby letter of credit Eligibility Criteria

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

Eligibility Criteria

  • • Age Limit of Individuals - 22 to 60 years
  • • Collateral required must incase risk of loan amount is higher
  • • Should have good credit record

What are the factors generally affecting Standby letter of credit Eligibility Criteria?

There are top factors that generally affects Standby LC eligibility criteria as given below: -

Nil Collateral: - Even for availing Stand by letter of credit, lender want to know whether you are pledging any collateral/assets for getting loan, as to ensure the repayment can anyhow be collected. So, if won’t any property you lower the eligibility chances.

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.

What are the ways to increase Standby letter of credit eligibility?

To increase eligibility, you need to consider Top 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.

Clear business strategy: - Remember, a clear business strategy is such best way to increase your eligibility, as much as the concept is clear with applicable strategies to generate revenue helps the venture capitalist to do funding without carrying any fear of losing money.

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
  11. Photographs 2
  12. PAN Card Copy
  13. AADHAR CARD + PASSPORT
  14. ADDRESS PROOF IF RENTED ALSO REQUIRED PERMANENT ADDRESS PROOF
  15. LAST 3 YEARS FORM -16, ITR WITH COMPUTATION OF INCOME IF FILE
  16. LAST 1 YEAR BANK STATEMENT - SALARY ACCOUNT
  17. LOAN SCHEDULE & SANCTION LETTER (IF RUNNING
  18. COMPLETE PROPERTY PAPERS WITH CHAIN & MAP +ATS
  19. PROCESSING FEE CHEQUE IN FAVOUR OF BANK
  20. 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. PHOTOGRAPH BOTH
  15. PAN CARD CLEAR COPY PROPRIETOR.
  16. ADD PROOF (PASS PORT, VOTER ID CARD) PROPRIETOR.
  17. OFFICE ADDRESS PROOF LATEST. (ELECTRICITY BILL, TELEPHONE BILL)
  18. FIRM REGISTRATION CERTIFICATES & GST REGISTRATION COPY
  19. LAST 1 YEAR GST RETURN COPY
  20. FIRM 3 YEARS ITR COMPUTATION, PROFIT LOSS A/C, BALANCE-SHEET, TAX AUDIT REPORT, ALL SCHEDULED & ANNEXURE
  21. PROVISIONAL FINANCIAL AY 2019-20
  22. BANK ACCOUNTS (CURRENT ACCOUNT, CC ACCOUNT, OD ACCOUNT LAST 1 YEAR UPDATED.
  23. 6 MONTH SAVING ACCOUNT STATEMENT UPDATED (PROPRIETOR)
  24. IF RUNNING ANY LOAN PLEASE PROVIDE SANCTION LETTER AND REPAYMENT SCHEDULED
  25. AGREEMENT TO SELL COPY
  26. 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
  16. PHOTOGRAPH PARTNERS
  17. ADD PROOF - ALL PARTNERS (PASS PORT, VOTER I CARD ,PAN ,ADHAAR)
  18. FIRM ADD PROOF- LATEST ANY UTILITY BILL.
  19. PARTNERSHIP DEED COPY
  20. GST CERTIFICATE
  21. GST Return last 1 years
  22. 3 YEAR COMPANY ITR COI P/L A/C BALANCESHEET + AUDIT REPORT 3CB 3CD, ALL ANNEXXURS, SCHEDULED WITH C.A.CERTIFIED.
  23. PROVISIONAL FINANCIAL AY 2019-20
  24. 3 YEAR.ALL PARTNER INDIVIDUALS ITR + COMPUTATION
  25. FIRM ALL A/C BANK STATEMENT 1 YEAR UPDATED
  26. ALL PARTNER SAVING A/C STATEMENT 6 MONTH.
  27. IF RUNNING ANY LOAN – LATEST SANCTION LETTER + TRACK RECORDS OR REPAYMENT SCHEDULED.
  28. Agreement To Sell copy
  29. 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
  17. ALL DIRECTORS PHOTOGRAPH
  18. CLEAR PAN CARD - COMPANY AND ALL DIRECTORS.
  19. ADDRESS PROOF – COMPANY AND DIRECTORS.
  20. LIST OF DIRECTOR & SHARE HOLDER WITH CA CERTIFIED AS ON DATE
  21. MEMORANDOM
  22. ORDER IN HAND AND COMPLETE COPY (if applicable)
  23. GST, SALE, VAT AND SSI REGISTRATION CERTIFICATE.
  24. 1 YEAR GST RETURNS
  25. ALL DIRECTORS INDIVIDUALS ITR & COMPUTATION LAST 3 YEARS.
  26. LAST 3 YEARS COMPLETE FINANCIAL WITH TAX AUDIT REPORT AND ANNEXURE.
  27. PROVISIONAL FINANCIAL FY 2019-20 OR MONTH WISE SALE FIGURE LAST 1 YEAR
  28. COMPANY ALL BANK ACCOUNT STATEMENT 1 YEAR UPDATED.
  29. ALL DIRECTORS SAVING A/C STATEMENT 6 MONTH
  30. IF RUNNING ANY LOAN – LATEST SANCTION LETTER AND REPAYMENT SCHEDULED.
  31. AGREEMENT TO SELL COPY
  32. PROPERTY PAPERS COMPLETE CHAIN WITH SANCTION MAP
Frequently Asked Questions

How I can apply for letter of credit fund?

Just submit your letter of the credit application form at any of our ideal bank Branche and for approval.

What are the benefits of a standby Letter of Credit fund?

There are many benefits of standby letter of credit: -

  • 1.It reduces the risk of non-paying buyers
  • 2. reduce the risk in international trade transactions
  • 3. It is quick to secure.

What are parties involved in standby Letter of Credit fund?

  • 1.Applicant/Buyer/Importer
  • 2. Issuing Bank
  • 3. Beneficiary/Seller/Exporter
  • 4. Advising Bank
  • 5. Nominated Bank
  • 6. Confirming Bank
  • 7. Reimbursing Bank
  • 8. Second Beneficiary

What is the purpose of standby letter of credit fund?

  • To back up the seller obligation
  • Guarantee of payments.
  • Collateral for loan
  • Improving credit rating of bond, notes security of any kind of commercial paper.

What is standby letter of credit fund?

A standby letter of credit (SLOC) is a legal document that gives guarantees of payment to a seller in the event that the buyer or the bank's client.

How many types of standby letter of credit fund?

There are two types of standby letters of credit given below: - 

  • A financial Standby letter of credit.
  • The performance Standby letter of credit.

Which customer is eligible for Standby letter of Credit fund?

Any individual, business firm, customers are eligible. If they have sufficient cash in their bank account or a good cibil score.

Related Topics

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