Pashtany Bank offers letter of credit facility for all its customers based on their request in accordance with the terms and conditions stipulated in the credit, within a specified time. Letter of Credit is one of the strong facility available under trade finance, especially for importers. This facilitates the importer to negotiate the deal with better terms and conditions and enables them to conduct the business without locking their own funds. To help the importers, Pashtany Bank offers the foreign as well as In-land Letter of Credit.
Pashtany Bank Letter of Credit Criteria:
- Prescribed application along with confirmed contract / Performa invoice.
- Statutory license from competent authority (AISA / MOC / MOI / Customs Dept) etc.
- Audited Financials/ Business Plans.
- Upfront & 100% Cash Margin. However, lower cash margins can be considered subject to provision of suitable collateral security defined in Pashtany Bank credit policy.
- Upfront Commission @ 0.30% of LC amount for 1st quarter and @ 0.25% of LC amount for subsequent quarters subject to a minimum commission of $ 300.
- Cash Margin / Collateral Security held with the Bank will be returned to the customer only on completion of the transaction under LC.