Working capital against letter of credit

Unlike most other unsecured business (or even personal) loans, no security or collateral is required to avail a working capital loan from a bank or Non-banking Financial Company (NBFC). ... The bank will check and verify your credit history and if satisfied, will give you the loan with a fixed tenure to pay it back.

But i want to get loan against foreign letter of credit is it possible.

I think it's not

Letter of credit is only used to guarantee payment on behalf of purchasers bank. Working capital loan is different. This is sort of receivables management and working capital is cash management which includes operations including money to purchase raw material

Your welcome, wc loan documents needed for application.

• Duly filed loan application form with passport size photographs.
• KYC documents, such as PAN, Aadhar, address proof, etc.
• Business vintage documents, such as incorporation certificate.
• Income tax returns for the past year.
• Bank statement for the past nine months.

That letter of credit is not important becuase, loan is approved through, Tandon committee methods, cash budget methods or turnover methods.

Yes you can finish it off like that in an essay. When banks grant working capital, it can be based n Tandon committee, cash budget based r turnover based. Banks impose hard capital rationing when they think that company management is weak or credit history is poor. 

SRY, I could have been mistaken, I was reading India banking rules about your issue today and found out that you can apply cross border loans through letter of credit. visit your local  head office for further details. 

9. Whether banks with less than 10% of aggregate exposure can debit their dues such as fees and charges and maturity obligations around cross border services like letter of credit/ bank guarantees, derivatives, factoring transactions, other loan instalments, etc. from the CC/OD accounts of their borrowers before transferring the funds to the CC/OD account of the borrower with bank(s) having 10% or more of the aggregate exposure of the banking system to that borrower?

In such cases, banks are permitted to debit interest/charges pertaining to the said CC/OD (not any other facilities granted by the same bank) account as well as fee/charges for opening of LC/ BG, issue of DDs, etc. before transferring the funds to the CC/OD account of the borrower with bank(s) having 10% or more of the aggregate exposure of the banking system to that borrower.