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Apply Letter of Credit | Myforexeye Fintech Ltd |

Letter of Credit is a bank document that ensures the seller's payment to the buyer. Because this document protects both the buyer and the seller from payment. This document assists vendors in both national and foreign sales arrangements in mitigating loan hazards.There are different types of hazards connected with Letter of Credit (LC), however, and this makes it essential to implement a risk mitigation approach that will save importers from falling into the pit. It decreases the exporter's potential for non-performance.<br>Visit: https://www.myforexeye.com/buyers-credit-against-standby-letter-of-credit-sblc<br>

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Apply Letter of Credit | Myforexeye Fintech Ltd |

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  1. WELCOME TO MYFOREXEYE

  2. Buyers Credit against Standby Letter of Credit (SBLC) • As per Ex Finance Minister of India, Mr ArunJaitley’s detailed report presented in the parliament, there were fraudulent letter of undertakings (LOUs) issued by NiravModi’s companies between March 2011 and May 2017. Furthermore, 16 fake LOUs per month over the course of six years were traced contributing to fraud perpetuated by jewellers NiravModi and MehulChoksi. This was then that RBI had decided to discontinue the practice of issuance of Letter of Undertaking (LOUs) / Letter of Comfort (LOCs) for trade credits for imports into India with immediate effect. (Source:-Report) • However, considering the fact that India is an import driven country, the Reserve Bank of India(RBI) circular clearly stated that banks may continue to issue Letter of Credit (LCs) and issue bank guarantee for Trade Credit subject to compliance with RBI guidelines. Thus, bank guarantees (also known as Standby letter of Credit - SBLC) backed Buyer’s Credit is what Importers in India have started availing in order to access affordable cost of borrowing to make timely payments to their supplier for goods imported.

  3. SBLC Backed Buyer’s Credit-Insight Ever since the Reserve Bank of India had decided to discontinue the process of issuance of LOU/LOC for Buyers Credit, it is now the use of Standby Letter Of Credit (SBLC) which is used to arrange Buyer’s credit. This facility is provided to the importers by few Indian Bank situated overseas (funding banks) as per the guidelines issued by the RBI. It is a guarantee issued by banks in India on behalf of the clients. The issuing bank guarantees the payment to the funding bank if the client fails to make the payment. Importers importing capital goods can raise funds under the Buyer’s Credit against SBLC route for up to three years. Those businesses importing non capital goods can raise funds for up to one year or less based on the varying requirements of the individual business. Read more Detail source Reference: https://bit.ly/2L3uX3V

  4. CONTACT US Myforexeye Fintech Pvt. Ltd.Contact No: 7771009009 Plot 135, Pocket-1, JasolaVihar New Delhi 110025

  5. THANK YOU

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