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Trade Services - Inland Letter of credit

A documentary Letter of Credit (LC) provides an irrevocable undertaking of the issuing bank for assured payment to beneficiary specified in the Letter of Credit, against the presentation of the documents which are in compliance with the terms and conditions of the Letter of Credit. Issue Inland Letters of Credit to your beneficiaries with the Axis advantage.

Features and Benefits

Helps you facilitate purchase of goods and negotiate for better terms with the seller

Faster processing and same day issuance of LC

Quick and convenient online LC issuance process

Can be availed against sanctioned credit limits or Fixed deposit

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Inland Letter of Credit- How it Works?

How it works?

Issuing a LC is a very easy process, follow the below steps to document LC between the beneficiaries.

  • 01

    Buyer and Seller enter into contract and agree that payment will be made on the basis of LC.

  • 02

    Buyer approaches Axis Bank (Issuing Bank) to issue LC in favour of Seller.

  • 03

    Axis Bank issues LC which is advised through its branch or correspondent bank (Advising Bank).

  • 04

    Advising Bank advises LC to Seller.

  • 05

    Upon receipt of LC, Seller prepares shipment and delivers documents to the Presenting Bank (which could also be your Advising Bank).

  • 06

    Presenting Bank dispatches documents to Axis Bank for payment.

  • 07

    Axis Bank pays the Presenting Bank upon verifying that the documents are in order.

  • 08

    Upon receipt of payment, Presenting Bank pays the Seller.

  • 09

    Buyer pays the document amount to Axis Bank.

  • 10

    Axis Bank forwards the documents to Buyer, who can now use them to obtain the goods.

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