Overview

A documentary letter of credit is an irrevocable undertaking by the issuing bank to make payment to beneficiary specified in the letter of credit, against the presentation of the documents, required in compliance with the terms and conditions of the letter of credit.

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Features &
Benefits

Features & Benefits

  • imgHelps you facilitate purchase of goods and negotiate for better terms with the seller
  • imgFaster processing and same day issuance of LC
  • imgQuick and convenient online LC issuance process
  • imgCan be availed against sanctioned credit limits or Fixed deposit

How it works?

 

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Buyer and Seller enter into contract and agree that payment will be made on the basis of LC.
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Buyer approaches Axis Bank (Issuing Bank) to issue LC in favour of Seller.
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Axis Bank issues LC which is advised through its branch or correspondent bank (Advising Bank).
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Advising Bank advises LC to Seller.
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Upon receipt of LC, Seller prepares shipment and delivers documents to the Presenting Bank (which could also be your Advising Bank).
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Presenting Bank dispatches documents to Axis Bank for payment.
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Axis Bank pays the Presenting Bank upon verifying that the documents are in order.
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Upon receipt of payment, Presenting Bank pays the Seller.
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Buyer pays the document amount to Axis Bank.
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Axis Bank forwards the documents to Buyer, who can now use them to obtain the goods.
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Fee &
Charges

Fee & Charges

SOC - Trade

Disclaimer:

Product offering is subject to certain eligibility criteria as per Bank's internal policy and is subject to Bank's discretion