Trade Finance
Letters of credit, bank guarantees and import-export funding.
End-to-end trade-finance solutions covering domestic and international trade — letters of credit, bank guarantees, buyer/supplier credit and more.
Rate from 9.00% p.a.
Tenure up to 3 yrs
Interest rates and terms are indicative and subject to lender approval.
Trade Finance
Key features
- Letters of credit (LC)
- Bank guarantees (BG)
- Import & export finance
- Forex & risk solutions
Eligibility
- Active trading business
- Import/export or domestic trade
- Banking relationship
Documents
- Trade documents (LC/BG)
- KYC & business proof
- IEC (for international)
- Financials
In depth
Understanding Trade Finance
Trade finance represents the financial instruments used by companies to facilitate international trade and commerce.
- The Mechanism
- Introduces a third party (like a bank) to remove the payment risk and supply risk between an exporter and an importer.
- Key Components
- Letters of Credit (LC), Bank Guarantees (BG), and Shipping documents.
- What the Results Mean
- It makes global trade feasible by guaranteeing that an exporter gets paid and an importer gets their goods.
- Smart management
- Ensure strict compliance with international shipping and documentation standards.
Regulatory source
Governed domestically by RBI under the Foreign Exchange Management Act (FEMA) and internationally by the International Chamber of Commerce (ICC) rules.