Securing Your International and Domestic Trade.
Substitute our creditworthiness for your own and trade with confidence across borders.
A Letter of Credit is an irrevocable undertaking by Bharat Bank, on behalf of our customer (the applicant), to pay a certain amount to the seller (the beneficiary) provided that the conditions and documentation specified in the LC are strictly met. For importers, it ensures that payment is made only after the goods are shipped. For exporters, it provides a guarantee of payment from a reputable financial institution, regardless of the buyerās individual financial status.
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- Enhanced Credit Standing: Facilitate purchases from new or global suppliers who may require bank-guaranteed payments.
- Payment Security: The bank releases funds to the seller only upon the presentation of "compliant documents" (verifying shipment, quality, and quantity).
- Flexible Tenures:
- Usance LC: Typically issued for 3 to 6 months for purchase of raw material. Ā
- Capital Goods LC: For machinery or high-value imports, tenures can range from 1 to 3 years.
- Global Network: Our robust network of correspondent banks ensures your LC is advised and honored swiftly across globe.
- Structuring Expertise: Our trade desks assist you in drafting LC terms to include specific quality inspections, delivery timelines, and insurance requirements.
|
Type |
Best Suited For... |
|---|---|
|
Sight LC |
Immediate payment to the seller upon presentation of correct documents. |
|
Usance LC |
Payment made after a specific credit period (e.g., 90 or 180 days after shipment). |
|
Irrevocable LC |
Standard protection; cannot be cancelled without the consent of all parties. |
- Applicants: Corporate entities, firms, and individual entrepreneurs with a sanctioned Non-Fund Based (NFB) credit limit.
- Collateral: As per Bankās Internal PolicyĀ
|
Charges |
Inland LC |
Foreign LC |
|---|---|---|
|
Commitment commission |
0.25% per quarter subject to minimum of Rs.1500/- |
0.15% per quarter subject to minimum of Rs.1000/- |
|
Usance commission |
0.50% for 3 months and thereafter 0.30% per month subject to minimumĀ ofĀ Rs.1000/- |
0.30% for 3 months and thereafter 0.075% per month subject to minimumĀ ofĀ Rs.1000/- |
|
Retirement of Bills under LC |
0.15% for bill value subject to minimum of Rs.1000 |
0.15% for bill value subject to minimum of Rs.1000 |
|
Amendment Charges |
Rs. 1000/-Ā (except tenor, value and validity) |
Rs.750/- (except tenor, value and validity) |
|
Discrepancy Fee |
Rs.2000/- per document |
USD100 per document |
|
SFMS/SWIFT charges |
Rs. 500/- |
Rs.2500/- |
(Exclusive of GST)
- Enhanced Credit Standing: Facilitate purchases from new or global suppliers who may require bank-guaranteed payments.
- Payment Security: The bank releases funds to the seller only upon the presentation of "compliant documents" (verifying shipment, quality, and quantity).
- Flexible Tenures:
- Usance LC: Typically issued for 3 to 6 months for purchase of raw material. Ā
- Capital Goods LC: For machinery or high-value imports, tenures can range from 1 to 3 years.
- Global Network: Our robust network of correspondent banks ensures your LC is advised and honored swiftly across globe.
- Structuring Expertise: Our trade desks assist you in drafting LC terms to include specific quality inspections, delivery timelines, and insurance requirements.
|
Type |
Best Suited For... |
|---|---|
|
Sight LC |
Immediate payment to the seller upon presentation of correct documents. |
|
Usance LC |
Payment made after a specific credit period (e.g., 90 or 180 days after shipment). |
|
Irrevocable LC |
Standard protection; cannot be cancelled without the consent of all parties. |
- Applicants: Corporate entities, firms, and individual entrepreneurs with a sanctioned Non-Fund Based (NFB) credit limit.
- Collateral: As per Bankās Internal PolicyĀ
|
Charges |
Inland LC |
Foreign LC |
|---|---|---|
|
Commitment commission |
0.25% per quarter subject to minimum of Rs.1500/- |
0.15% per quarter subject to minimum of Rs.1000/- |
|
Usance commission |
0.50% for 3 months and thereafter 0.30% per month subject to minimumĀ ofĀ Rs.1000/- |
0.30% for 3 months and thereafter 0.075% per month subject to minimumĀ ofĀ Rs.1000/- |
|
Retirement of Bills under LC |
0.15% for bill value subject to minimum of Rs.1000 |
0.15% for bill value subject to minimum of Rs.1000 |
|
Amendment Charges |
Rs. 1000/-Ā (except tenor, value and validity) |
Rs.750/- (except tenor, value and validity) |
|
Discrepancy Fee |
Rs.2000/- per document |
USD100 per document |
|
SFMS/SWIFT charges |
Rs. 500/- |
Rs.2500/- |
(Exclusive of GST)