Trade Services

A documentary Letter of Credit ( referred to as L/C) is an undertaking issued by a Bank (Issuing Bank), on behalf of an applicant (the buyer/importer), to the beneficiary (seller/exporter) to pay for goods or services provided that the beneficiary presents documents which comply with the terms and conditions of the credit.

Special Types of Import L/Cs:

Revolving Documentary Credit

A revolving credit is one that allows the amount to revolve on the same terms and conditions as the original credit, following the occurrence of an event that will trigger a revolvement.

Transferable Documentary Credit

Allows the Beneficiary to transfer the L/C to one or more second beneficiaries (as per the credit terms and conditions). In transferable credit the beneficiary is not required to have a credit line/facility with the bank, the beneficiary can benefit by coordinating the trade transaction between the applicant and the supplier.

Standby Letter of Credit

Standby Letter of Credit are used to underwrite a wide variety of commercial and financial operations and act as a guarantee if there is a failure to perform a contractual undertaking.

A confirmed LC constitutes a definite undertaking of the Confirming Bank, in addition to that of the Issuing Bank, to pay for goods or services provided that the beneficiary presents documents which comply with the terms and conditions of the credit.

Documentary collection is an instruction to a “Collecting Bank” to deliver documents to the buyer against payment or acceptance of a bill of exchange.

In case of a delay in receipt of original bill of lading, a Guarantee may be issued in favour of the carrier, to obtain release of goods, without presentation of an original Bill of Lading.

Allows the buyer or importer to take possession of the goods against documents received directly by the importer from the supplier or along with the consignment and original documents received by the bank.

Irrevocable unconditional undertaking for payment by the bank on behalf of the buyer (for the goods purchased/service provided) to the seller at specific maturity date. This has cost benefits when compared to a Letter of Credit.

Fulfil short term financial requirements of importers to settle import related payments. Advances will be released in the form of Import Loans, Custom Duty Loans, Advance Payment Loans and Local Purchase Loans.