I have a property worth Rs.95 lacs can i gate L/C?
Answers:
Letter of credit is a non-financial facility given by banks to customers only. You may approach your bank where you maintain CURRENT ACCOUNT for your BUSINESS. The documents normally required are identity proof, address proof, photographs, constitution proof (Proprietorship/partnership/co... registration certificate (under the SSI rules/Shops Act),trading,profit and loss accounts and balance sheet for three preceding years, assessment orders of Income Tax/Wealth Tax/Sales Tax. These are common for all facilities. For LC, the copy of the confirmed order, import /export licence if applicable for the commodity,requirement of funds when the documens under LC are negotiated and arrangement for funds for meeting the same, corollary financial facility needed etc. will be scrutinised. If the bank is satisfied that own arrangements of funds is possible and there will not be any devolution of liability on the bank, then the margin requirement will be considered. At that time only, the value of your property will come into picture apart from the certification as to clear marketable title to the property beong certified by the bank's lawyer. If the margi is 20%, then the LC limit will be 5 times that of the value of the security offered as margin. Nitty gritty of the matter may be negotiated with the Bank, with the help of your Chartered Accountant.
this is related to the banker, pls. consult them
Initiate proposal with your bank for the purpose. ICICI Bank is very aggressive these days for SME funding, talk to them. Get in touch with DMAs of various banks/NBFCs/FIs in your location. Seek their offers, evaluate and pick the one which suits you most.
The answers post by the user, for information only, BAnswer.com does not guarantee the right.
More Related Questions and Answers...