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.
Secured Standby Letter of Credit
Parameter | Details |
---|---|
Facility Type | Secured Standby Letter of Credit (SLOC) |
Purpose |
|
Tenor | 6 months to 3 years |
Interest Rate | LIBOR + 3.5% to 5% |
Security | Fixed deposits, cash collateral, or bank guarantees |
Processing Fees | 1% to 2% of the SLOC amount |
Unsecured Standby Letter of Credit
Parameter | Details |
---|---|
Facility Type | Unsecured Standby Letter of Credit (SLOC) |
Purpose |
|
Tenor | 6 months to 2 years |
Interest Rate | LIBOR + 5% to 6% |
Security | Credit appraisal and company financials |
Processing Fees | 2% to 3% of the SLOC amount |
Common Use Cases for SLOCs
Payment Guarantees
Ensure fulfillment of financial obligations in domestic or international transactions.
Performance Obligations
Provide assurance for contract compliance in construction or service agreements.
Bid Bonds
Support tender participation by securing the bidder's credibility.
Credit Enhancement
Improve creditworthiness and access better financing terms for large-scale projects.
Trade Finance
Facilitate seamless import/export transactions with guaranteed payment structures.
Corporate Restructuring
Provide liquidity and enhance stability during organizational transitions.