Meaning of loc( letter of credit),bank guarantee.

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Vikas S. Shirsat (Querist)

15 October 2012 Dear All,

please anybody guide me regarding

letter of credit, bank guarantee, fdr & Margine money........ with proper example

please urgent.....

Regards,
Vikas

S.Siju Gemin

S.Siju Gemin (Expert)

18 November 2012 Dear Vikas,

1)Letter of Credit: Is a document provided by the bank to the supplier on the request of customer, wherein bank promises to pay the supplier against the invoice for the goods supplied to the customer as per the terms of payment on the due date.It can be Indian LC of Foreign LC.

2) Bank Guarantee: Is a document provided by the bank to the third party on the request of the customer. Wherein the bank promises to pay the third party the promised amount in case the customer fails to keep his promise to the third party.

3)Forwarder:Is an agency who in case of import consignments forwards the consignment from one country supplier) to the other country(Customer).

4)Margin Money: Is the security held by the bank in the form of deposit at a fixed percentage to the value of Bank Guarantee or Letter of Credit issued by bank to its customer.

Vikas S. Shirsat

Vikas S. Shirsat (Querist)

01 December 2012 Thanks .................

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