Opening an inland or import letter of credit starts with the bank's LC application: parties, amount and tolerance, sight or usance tenor, shipment and expiry dates, documents required and incoterms. This form captures everything the bank's trade-finance desk needs under UCP 600.
A sight LC is paid when compliant documents are presented; a usance LC is paid after a credit period (30/60/90 days) from shipment or acceptance.
Commercial invoice, transport document (bill of lading or lorry receipt), packing list, insurance (if CIF/CIP), certificate of origin and any inspection certificate.
Depends on the sanction — often 10–25% cash margin for non-fund-based limits, with the balance covered by the sanctioned LC limit.
Prepared by Avani Corporation, Indore — Solutions for every financial need. Formats follow standard bank appraisal practice; the sanctioning bank's own assessment is final. Free to use; WhatsApp 9183020110 for help.