Import Letter of Credit

Import Letter of Credit

Assured payment to overseas beneficiary
Convenience of issuing Import Letter of Credit against sanctioned credit limits/fixed deposit
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  • Issuance of Letter of Credit (LC) against both Non-Fund based & fixed deposit-backed limits

  • Quick processing with minimal documentation 

  • Extensive global network, enabling seamless communication with banks

  • Multiple types of Letter of Credit (LC) can be issued, such as:

    • Non Capex LC

    • Capex LC

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  • The buyer & seller enters into a business contract. The seller wants a Letter of Credit (LC) for guaranteed payment.

  • The buyer applies to issuing bank (Bandhan Bank) for LC in favour of the seller.

  • The buyer’s bank approves the buyer’s credit risk, issues the LC, and forwards it to the seller’s bank (advising bank).

  • The seller’s bank authenticates the LC and advise the LC to the seller.

  • The seller ships the goods and prepares the required documents (invoices, bill of lading, insurance certificate etc) in accordance with the terms and conditions of the LC.

  • The seller presents required documents to their bank to check and forward the same to the LC issuing bank for payment.

  • The seller’s bank will forward the documents to the LC issuing bank and claim the funds under the LC.

  • The buyer’s bank examines the documents within 5 banking days and, if compliant, makes the payment or provides acceptance to make the payment on due date.

  • The buyer’s account will be debited on payment date as per terms mentioned in the LC (sight/usance).

  • The buyer takes delivery of the goods.

T&C apply

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