Standby Letter of Credit Provider for Indian Companies

Secured and unsecured SLOCs tailored for Indian businesses to meet payment guarantees, performance obligations, and trade finance needs.

Standby Letter of Credit | Corporate Clients in India

Objective — secure an Indian-or international bank-issued Standby Letter of Credit (SLOC) that satisfies your counterparty while preserving your working capital. When collateral capacity is tight, Financely arranges:

  • Asset-based loans against receivables, inventory or fixed assets
  • Equity injections from domestic or international investors
  • Sponsor guarantees or corporate warranties, subject to due diligence and KYC

All SLOCs are issued by RBI-regulated banks (e.g. SBI, ICICI, HDFC, Axis) or top international banks, and can be confirmed if required. Final selection depends on ticket size, jurisdiction, sector and credit appetite; determined during mandate stage.

First step: complete the online screening form below. No fees are due until we both sign a mandate letter.

Bank-Preferred Ticket Size

INR 15 Cr – 350 Cr(≈ USD 2 M – 50 M) per SLOC offers optimal pricing and credit lines.

Regulatory Framework

SLOCs follow ICC rules ( UCP 600 or ISP 98) plus RBI/FEMA guidelines and PMLA-compliant AML/KYC standards.

End-to-End Governance

Full RBI-mandated KYC, GST-and-CIN verification, plus FATF-aligned trade-finance controls.

Indicative Economics

Retainer INR 50 L – 2 Cr
Payable post-mandate; covers legal opinions, collateral valuations, credit processing.
Success Fee 1 – 3 % of face amount
Delivery SWIFT MT760 or Bank Guarantee
Process Overview (Typical 4 – 12 weeks)
1. Screening form
2. Indicative response (24 h)
3. Mandate, KYC, retainer (Week 1–2)
4. Collateral structuring or sponsor onboarding (Week 2–6)
5. Issuing-bank credit committee & draft wording (Week 6–10)
6. Final issuance, SWIFT MT760 live (Week 10–12)
Submit Transaction Details
Preliminary feedback within one business day

Information Required

• Beneficiary legal name, registered address, CIN & GSTIN
• Contract value, currency, governing law
• Requested SLOC amount & expiry (max. 12 months)
• Collateral details or preferred guarantee structure
• Underlying transaction summary & delivery milestones
• Target draw-down date

Attach draft contracts, POs or term sheets. Complete data accelerates credit approval.

Frequently Asked Questions

What rule set governs the SLOC?

Typically issued under UCP 600(ICC Pub. 600) or ISP 98(ICC Pub. 590), with RBI/FEMA compliance.

Which transactions are bankable?

Likely: EPC contracts, import finance, infrastructure projects, performance bonds with low call risk.
Unlikely: Speculative commodities, crypto trades, sanctioned-party deals, unresolved licensing or environmental issues.

Why is minimal call risk important?

High expected call frequency drives up capital allocation and makes standby LCs uneconomical.

Can we choose the issuing bank?

You may indicate preferences (e.g. SBI, ICICI, HDFC, Axis), but final selection depends on ticket size, jurisdiction and available credit lines.

Are retainer funds refundable if issuance fails?

No. Retainer covers legal, valuation and due-diligence costs already incurred.

What if the contract value changes?

Amendments require consent from issuing/confirming banks and beneficiary, per UCP 600 Article 10; additional fees may apply.

How is compliance monitored?

Financely follows RBI, PMLA and FATF standards with full sanctions, AML and adverse-media screening.

Disclaimer. Financely acts solely as arranger and is not a lender or issuing bank. All mandates are subject to KYC, AML, FEMA and credit approval by the proposed issuing institution. Timeframes and fees are indicative and may adjust if transaction parameters change.

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