Letter of Credit: Secure your global trade with confidence.
A Letter of Credit from Kathir Bank is your safety net for international and local trade. It guarantees payment to the seller—as long as the terms of the agreement are met—bringing peace of mind to both parties in the transaction.
What is a Letter of Credit?
A Letter of Credit (LC) is a written commitment by Kathir Bank to pay a seller on behalf of the buyer, provided that all required shipping documents are correctly presented and conditions are fulfilled.
Benefits of Using Kathir Bank’s LC Services
- Payment Assurance
Sellers are guaranteed payment once conditions are met—minimizing risk. - Stronger Supplier RelationshipsBuyers show serious intent, making it easier to negotiate favorable trade terms.
- Reliable Documentation Process
We handle document checks, timelines, and communication so you don’t have to worry. - Supports Importers & Exporters
Whether you’re purchasing or selling, we tailor LCs to your side of the deal.
Types of Letters of Credit We Offer
- Import Letters of Credit
Assure your suppliers they’ll be paid—only after goods are shipped and terms are verified. - Export Letters of Credit
Secure payment from international buyers with bank-guaranteed assurance. - Confirmed LCs
Double protection with an added guarantee from a second bank. - Standby LCs
Used as a financial backup in case the buyer fails to fulfill payment.
Who Is It For?
- Businesses engaged in cross-border trade
- Importers sourcing raw materials or equipment
- Exporters selling goods to new or unfamiliar markets
- Companies looking to build trust in complex deals
We also offer and specialise in:
- Back-to-Back LCs
- Revolving LCs
- Freight LCs and Usance LCs with mixed payment options
- Trust Receipts (TR) loan facilities for import payment settlements
- Standby LCs, which provide financial cover to payment commitments and that are well-accepted financial guarantee for payment obligations and facility arrangements
Import Collections (DA/DP)
We take utmost care to advise and complete Inward Bills for collections as per international standards guided by ICC rules, while Loan against Collection Documents (LCD) facilities may be arranged to settle payments.
A diverse network of local branches, international correspondents, and efficient delivery channels enables us to handle transactions with a fast turnaround time.
Open Account TR
KATHIR INTERNATIONAL BANK open account TR provides import finance to buyers on open account terms without the need for traditional payment methods such as LCs and Documentary Collections.
Open account import financing facilities offer direct payment to suppliers in pre- or post-shipment deal stages.
Avalisation of Bill of Exchange/Promissory Notes
This product helps our clients strike attractive deals by capitalising on KATHIR INTERNATIONAL BANK capability of unconditional guarantee to pay the bill on due date.
This also enables suppliers to discount avalised bills at attractive rates when KATHIR INTERNATIONAL BANK has committed to pay on maturity date
Businesses involved in international or domestic trade—both importers and exporters—who want secure and guaranteed payments often use LCs to reduce the risk in transactions.
We provide a range of LCs including:
Import LCs
Export LCs
Confirmed LCs (with added protection)
Standby LCs (used as financial backup)
Typically, once all required documents are submitted, an LC can be issued within 1 to 3 working days depending on the complexity of the transaction.
Basic requirements include:
Commercial invoice
Sales contract
Shipping terms (Incoterms)
Import license (if applicable)
Applicant’s KYC and financials
Our Trade Desk will guide you based on your specific deal.
Yes, but only with the agreement of all involved parties: the buyer, seller, and issuing bank. Amendments can be made to terms like amount, shipping date, or validity.
You can apply by visiting any of our branches or contacting your Relationship Manager. We’ll guide you through the entire process from documentation to issuance.