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.|