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- Import Letter Of Credit
Trade Services - Import Letter of Credit
It is a written commitment to pay by a buyer's/ importer's bank (called the issuing bank) to the seller's/ exporter's bank (called the accepting bank, negotiating bank or paying bank). A letter of credit guarantees payment of a specified sum in a specified currency, provided the seller meets precisely defined conditions and submits the prescribed documents within a fixed timeframe.
Features & Benefits
Document compliance
Benefit from Axis Bank's expertise to examine if the shipping documents are compliant with the terms of LC
Quick processing
Enjoy faster processing and same-day delivery of LC
Global network
Trade with sellers across the globe on the strength of our wide network of correspondent banking relationships
Seamless insurance
Quick and convenient online LC issuance process
Secured credit
Can be availed against sanctioned credit limits or Fixed Deposit
This account comes with a host of unique features:
- Zero Monthly Average balance Requirement
- Extended benefits in cash deposits, withdrawal, chequebook, NEFT and RTGS
- Nil Monthly Service charge
- Classic , Supreme and Platinum options available for debit card. Click here
How it works?
The following steps explain how it works:
- 01
Buyer and seller enter into a business contract. The seller wants a letter of credit to guarantee payment.
- 02
The buyer applies to his bank (issuing bank) for an LC in the seller's favour.
- 03
The buyer’s bank approves the buyer’s credit risk and issues and forwards the LC to the seller’s bank (advising bank), which is usually located in the same geography as the seller.
- 04
The seller’s bank will authenticate the LC and advise the LC to the seller.
- 05
The seller ships the goods and prepares documentary requirements (invoices, bill of lading, insurance certificate, etc) in line with the terms and conditions of the LC.
- 06
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The seller presents the required documents to his bank to check and forward the same to the LC-issuing bank for payment.
- 07
The seller’s bank examines the documents for compliance with the LC terms and conditions.
- 08
If the documents are correct, the seller’s bank will forward the ‘compliant documents’ to the LC-issuing bank and claim the funds under the LC.
- 09
The buyer’s bank examines documents within 5 banking days and, if compliant, makes the payment/acceptance of payment on the due date.
- 10
The buyer’s account will be debited on the payment date as per the terms mentioned in the LC (sight/usance).
- 11
The buyer takes the delivery of the goods.
Disclaimer
Product offering is subject to certain eligibility criteria as per the Bank's internal policy and is subject to the Bank's discretion.
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