Letter of Credit FAQs
Can you issue a Letter of Credit (LC) to my seller if I do not have a ICICI Bank Credit facility
Yes. In case you do not have credit limits with ICICI Bank, open a Fixed deposit equivalent to amount of Letter of Credit and avail Letter of Credit against it.
Can ICICI Bank issue a Letter of Credit if the seller doesn’t provide the advising bank’s information?
Yes. We do issue a letter of credit.
Why do I need to pay your fee before you open the letter of credit? Can't you take your fee out of the profits of our transaction?
We do not participate in the transactions of our clients as a party to the transaction other than a provider of certain financing. Therefore, we do not participate in the profits of our client's transactions. Our fees are the same regardless of the profit margin in the transaction.
Can I cancel my letter of credit after it has been opened?
Yes. We offer both revocable & irrevocable LC as per our customer's request.
What type of collateral do you require to open a letter of credit?
Either we require Fixed deposit as a collateral for opening of Letter of Credit or a collateral depending on the strenght of your finances. The final decision by our company to enter into a transaction is made according to a set of criteria.
What is the charge for opening a letter of credit?
The letter of credit charge depends on a number of factors. Our Relationship Manager can provide you with an updated Tariff schedule.
What is the maximum size letter of credit that you open?
We can open letters of credit of almost any size. We consider the complexity of the transaction; the goods that are being traded; parties to the transactions and where they take place.
For what type of goods do you open letter of credit?
We can open letters of credit for any type of goods provided they fall into our ethical and legal criteria.
I opened a letter of credit to my supplier, but he did not ship the goods. Will you refund my fee?
Once the letter of credit is opened your fee cannot be refunded. We recommend to all of our clients that they need to assure themselves of their suppliers' ability to perform before opening any banking instruments to them.