Latest Article: Implication on Buyers Credit because of PNB Fraud
As mentioned in article “Procedure for Buyers Credit“, Post receipt of offer letter from Indian Bank overseas branch or Foreign Bank, Indian Bank has to send Letter of Comfort / Undertaking (a type of Bank Guarantee) to overseas bank as security before funding the transaction.
Below link gives a sample format, to give an idea of the content of such LOU / LOC. Please note each bank and some times each bank branch has a different format. Thus, at every transaction, insist your buyers credit consultant to give you format of LOU / LOC along with offer letter to avoid any complication in the transaction.