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Standby letter of credit:
Whether it's for yourself or your business,
a Standby Letter of Credit can be used to
secure a variety of transactions where a
third party guarantee of payment may replace
a cash or bond deposit. Transactions that
are typically secured by a Standby Letter
of Credit include:
- Leases
- Mortgages
- Performance bonds
How the Letter of Credit Works:
You can apply for a Standby Letter of Credit,
which allows you to pledge securities in
your eligible account as collateral, replacing
the traditional cash or bond deposit. This
allows you to access credit while maintaining
your portfolio's current exposure to the
market. The collateral that backs the Standby
Letter of Credit must maintain a certain
minimum value. There is a fee for the issuing
of a Standby Letter of Credit and an annual
fee that is based on the stated Rupee amount.
Key Features:
- Flexible collateral arrangements
- Rapid turnaround time
- Competitive fees
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