Loan Against Local L/C
Purpose Financing on the locally purchased consignment of the merchandise goods through Letter of Credit/Draft.
Financing Ratio: Maximum 80% of the document value of the consignment of the merchandise goods.
Nature (i) Credit limit-revolving & renewable.
(ii) Loan under single deal – 'non-revolving'.
Disbursement On the payment of the consignment of the document value to the beneficiary by booking the loan under deal.
Principal Repayment Each deal within maximum period of 120 days.
Interest repayment On quarterly basis but prior to the maturity of the deal.
Security: At least 125% coverage by the value of the hypothecated purchased consignment and/or 50% coverage by the value of mortgaged collateral security.
Tenure: Regular credit limit for maximum one year period.