Letter of Credit

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What is a Letter of Credit?

The companies you do business with, undoubtedly have impeccable credentials. But why take a chance? Tata Capital, with its associate banks, offers Letter of Credit (LC) facilities which arms you with guarantee of payment - especially useful while transacting with companies you have had limited exposure to and also for importing your capital goods from any part of the world. We offer two types of letter of credit - Sight and Usance LCs, both inland and foreign.

Considering the dynamic nature of international dealings like distance and differing laws, the use of letters of credit has become a critical aspect of international trade. Our Letter of Credit will provide you with the highest security and minimize your credit risk. Tata Capital’s Letter of Credit gets sanctioned and issued quickly, and is competitively priced.

Letter of Credit Features & Advantages

Below are the features and advantages of choosing Tata Capital’s Letter of Credit services to meet your business requirements:

Offers two types of Letters of Credit: Sight & Usance LC, both inland & foreign

Tie ups with large global OEMs

Structuring of financing solutions in foreign currency at LIBOR rates to avail extended credit against the Letters of Credit

Financing up to 100% of LC value

Convenience of payment as per LC terms

LIBOR based pricing upto 3 Years

Quicker approvals

No Extra Collateral

Other Structured Products

Below are a few common structured products we offer:

Loan Against Securities

With Loan Against Securities (LAS) from Tata Capital you can unlock the potential of your investments. All you have to do is pledge your equity shares, mutual funds, bonds or securities and get access to instant liquidity.

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Structured Investments

Tata Capital investments can be structured as mezzanine capital, in the form of convertible bonds or non-convertible debentures, based on your need for capital alongside maintaining a healthy debt equity balance.

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Debt Syndication

Tata Capital can help you raise funds for your business expansions and acquisitions, refinance your existing business or restructure your debt with our hybrid solutions aimed at debt capital markets. We offer debt syndication services in both rupee and foreign currency through our vast network of associate banks / NBFCs.

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Lease Rental Discounting

Being a property owner, you must be earning rentals from your property at regular intervals. Tata Capital’s Lease Rental Discounting Solutions will help you en-cash on these rentals by availing loan facility at attractive interest rates against the lease rentals.

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Loan Against Property

It’s time you pledge your commercial or residential property, and let it fund for all your other needs with the help of Tata Capital’s Loan against Property solutions. In order to leverage the assets, we offer loan against property up to 70% of the value, with easy repayment options.

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Explore our Other Solutions

Working Capital Loans

Also known as a working capital term loan, Tata Capital can help you secure easy and quick funding to meet your business expenses at competitive interest rates.

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Term Loans

Tata Capital Term Loans are designed to help you meet all your business requirements and fund your business expansion and growth.

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Construction Finance

Tata Capital's team of specialists can help you analyze your precise requirements and select the right loan product for your construction business.

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Equipment Finance & Leasing

Tata Capital brings you comprehensive and innovative, solution-oriented asset financing solutions to help you procure the right equipment for your business.

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What is a Letter of Credit?

Letter of Credit Features & Advantages