FAQs - Funding against SBLC
The Funding is done against the SBLCs issued by counterparty banks within the Counter Party Bank Limits. The end utilization shall be for Bonafide purposes including Working Capital requirement (including Trade), Capital Goods, Project and Personal purposes to the Retail Borrowers etc, catering to the funding needs of both retail clients as well as to the corporates/ other eligible entities. Presently, IBU Gift arranges funding against SBLC in USD & Euro.
For Counterparty Banks/Parties, there is no immediate outlay of funds, easy monitoring comparatively, less cost to the banker, low probability of default, and contingent deployment of funds. Simple credit appraisal with minimum TAT, Simplified documentation, no hidden cost for the client, Limit is available even for client's personal purposes, Renewal/Rollover is available, No internal/external rating is required etc.