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Home > Corporate > Govt Business > Letter of credit processing

Letter of Credit Processing- IDBI Bank Trade Finance-Letter of Credit



Introduction of Letter of credit

Documentary Credits, more commonly known as letters of credit are a widely used method to effect payments in domestic and international trade.  A written undertaking is issued by a bank (usually referred to as the issuing bank) on the instructions of the buyer of goods to the seller. The use of documentary credits provides enough safeguards for the parties involved.  The seller is ensured payment, provided he complies with terms he agreed to while the buyer can include all terms and conditions within the documentary credits that satisfy him on the quality and quantity of the goods without having to sight / inspect the goods themselves. Since banks act as trustworthy third parties/ intermediaries, the issues relating to trust between the buyer and the seller are taken care of.
Documentary Credits can be either sight or usance depending on whether credit period is extended to the buyer by the seller.

The IDBI Bank Advantage
      Bullet A robust network of overseas correspondent banks, cutting edge technology, global connectivity, modern trade processing platform and team of professionally qualified documentary credit specialists, all come together as a highly effective package for you for all your LC requirements.

      Bullet Domestic LCs as well as Foreign LCs transmitted over secure network using SFMS and SWIFT platforms to prevent frauds.

      Bullet Advisory on structuring of complex LCs, especially those related project imports, Commodity imports, Merchant Trade etc.

      Bullet High standards of document checking.

      Bullet Quick TAT

      Bullet Soft copy of LCs through e-mail/fax etc. Short term trade credit as per regulatory guidelines.
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