The Import Letter of Credit facility is a credit product that the CBE extends to applicants engaged in the import business, or other applicants who import for various purposes on payment of a certain percentage of the value of the document while opening a Letter of Credit.
The Import Letter of Credit facility amount to be availed to the customer is up to a minimum of 20% margin of the document value depending on the financial strength of the customer, the letter of credit facility account performance, and marketability of the import goods for a period of one year against valid import documents. However, the Bank may exceptionally consider below this minimum margin for its prominent customers.
Import Letter of Credit facility shall be renewed every year unless the Bank demands it to be reviewed by the credit approving team for any remedial action when the performance of the account is deteriorating
The Bank may extend a one-time and/or revolving Import Letter of Credit Facilities:
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A one-time Import Letter of Credit Facility is a non-renewable letter of credit facility extended to applicants, such as investors, importers, and others that have no Import Letter of Credit Facility or who want to import over and above the existing Import Letter of Credit Facility limit.
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Revolving Import Letter of Credit Facility is a form of credit facility where the limit is renewed periodically when the customer fulfills the Bank’s requirement.
Eligibility Criteria
The importers applying for an Import Letter of Credit Facility should present their import trade licenses. In the case of non-importers applying for a one-time Import Letter of Credit Facility, however, an investment certificate or appropriate license from the concerned government organ and Proforma Invoice can be accepted.
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