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Letter of Credit

Reassure your Suppliers with ICICI Bank’s Letter of Credit

We understand that for exploring your business overseas, you may need to deal with unknown suppliers. Your suppliers may require payment assurance for doing a business transaction. In this regard, with our Letter of Credit (LC) service we can provide payment assurance to your supplier which will facilitate easy purchase of goods.

With our Letter of Credit

  • Make easier purchase of goods from international markets
  • Build and strengthen business relationships with clients through timely payments
  • Explore new business opportunities by removing risk of default

I agree that by clicking on 'Submit', I authorise ICICI Bank and its representatives to contact me by telephone, e-mail, using Short Messaging Service (SMS) with respect to products/ facilities hereby applied for.

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How does a Letter of Credit work?


  • Step 1 - You (the buyer) and the supplier sign a contract stating that payment will be made on the basis of Letter of Credit
  • Step 2 - You approach ICICI Bank to issue a Letter of Credit in supplier’s favour
  • Step 3 - ICICI Bank issues the Letter of Credit, advised by its own branch or correspondent bank in supplier’s country
  • Step 4 - Advising Bank advises Letter of Credit to the supplier
  • Step 5 - The supplier receives the Letter of Credit, sends the shipment of goods and deliver’s documents to its own bank
  • Step 6 - Supplier’s bank sends the documents to ICICI Bank for payment
  • Step 7 - You now pay the amount due to ICICI Bank, and get the documents in turn

Types of Letter of Credit

Sight Letter of Credit

The issuing bank makes the payment once the documentation is received in order

Usance Letter of Credit

The issuing bank accepts the draft once all documentation received is in order, and agrees to pay on the maturity date

Standby Letter of Credit

This is typically used to ensure that the applicant will meet the payment or contractual obligations. A Bank Guarantee can also serve the same purpose.

The ICICI Bank Edge

  • Convenient - Sanctioned and Issued quickly
  • Wide Acceptance - Gloabally accepted by all beneficiaries
  • Multichoice - ICICI Bank Letter of Credit can also be availed against 100% cash margin in the form of Fixed Deposits
  • Competitive pricing