A letter of credit is a written instrument, issued at the request of a buyer (applicant) in favor of the seller (beneficiary) undertaking, to honor the documents or drafts drawn by the seller in accordance with the terms and conditions stipulated in the credit, within a specified time. Letter of Credit one of the Strong facility available under Trade Finance, especially for Importers. This facilitates the Importer to negotiate the deal with better terms and conditions and enables him to conduct the business without locking his own funds. To help the Importers,
Maiwand offers the Foreign as well as Inland Letters of Credit. However, only Sight LCs will be opened & no Usance LCs will be issued.

Letters of Credit are issued on fulfilling the following criteria :

1. Prescribed Application along with Confirmed Contract / Performa Invoice.

2. Statutory License from competent authority (AISA / MOC / MOI / Customs Dept.)etc. Audited
    Financials/ Business Plans.

3. Upfront & 100% Cash Margin. However, lower cash margins can be considered subject to provision of
    suitable collateral security and its assessment will be done on case to case basis.

4. Upfront Commission @ 0.30% of LC amount for Ist quarter and @ 0.25% of LC amount for
    subsequent quarters subject to a minimum commission of $ 300.

5. Cash Margin / Collateral Security held with the Bank will be returned to the customer only on
    completion of the transaction under LC.