Reimbursement Authorisation (RA) Finance
Overview
RA Financing is an arrangement by overseas lender / banks (like IBU and referred as Reimbursement / Reimbursing Bank) to finance the import trade, basis the reimbursement authority provided by the LC Issuing Bank (importer’s bank) and reimbursement claim submitted by the Claiming Bank (exporter’s bank).
Key Features
| Features | Details |
|---|---|
| Eligible borrower | Person resident in India acting as an importer. |
| Type of facility | Fund based facility backed by Reimbursement Authorisation from LC Issuing Bank. |
| Currency | USD & EURO |
| Amount of assistance | Bill Amount presented under LC |
| Tenure | For Import of Capital Goods -3- years from the date of shipment & For non-capital goods, this period shall be up to one year or the operating cycle, whichever is less to be in compliance with Trade Credit regulations of Reserve Bank of India. No of days will be calculated as per Bill due date, or as requested by customer whichever is less |
| Processing fees | Nil |
| Default event | In the event of any default, penal interest @4% over and above exiting ROI |
Advantages
- Seller/Exporter and Buyer/Importer can deal on sight basis and negotiate a better deal.
- Applicant gets access to funding from international markets and multiple locations.
- Quick processing and turnaround of transactions.
- Meeting the business requirement of the importer by arranging timely funding in foreign currency.
- Available against RA Authorisation of other Bank within counter party bank limits.
How To Apply
Get a RA Financing in 3 easy steps.
01. Get in touch
Call On
079-66759928
E-mail -
ibugiftcity@idbi.co.in
02. Visit Our Branch
Visit the IBU Gift City or any other branch of IDBI Bank.
Find the Nearest Branch