Below given are Letter of Undertaking (LOU) / Letter of Comfort (LOC) charges: These charges detail information is as provided by respective bank’s website. These rates may vary from customer to customer, based on their negotiation with bank.
Guarantee Issuance: 1.8% p.a. or min 500
* Source: www.hdfcbank.com
Buyers’ Credit against existing FB/NFB limits:
Arrangement of Buyers’ Credit, Issuance of a Guarantee/LOU/LOC, Payment to Supplier, Receipt of funding in Nostro : 2.50% p.a. subject to a minimum of Rs.1000/- or as per existing sanction terms for importer plus Swift charges as applicable/ actual courier charge
* Source: www.axisbank.com
State Bank of Hyderabad
Letters of Comfort – Service Charges
- Backed by 100 % discharge of liability (Viz., cash margin, sanctioned term loan, guarantee of First Class bank, 100 % lien on drawing power) : – 0.6875 % p.a.
- Others – 2.75 % p.a
Minimum charges for 3 months will be recovered
Other than Performance Guarantees: 100/- + 3.00% p.a.
* Source: www.syndicatebank.in
Letter of Comfort in lieu of Letter of Credit or Buyers’ Credit or Standby L/C: @ 3% P.A. with minimum for 2 Quarters.
* Source: www.allahabadbank.com
State Bank of India (SBI)
As per existing customer, LOU / LOC charges of SBI is 2.10% p.a. Detail pricing on SBI website is not available.
Guarantee issued including for availment of Buyer’s credit: 0.55% per quarter or part thereof for the specified period of liability calculated on the amount of liability under such guarantees at the beginning of every quarter.
* Source: www.canarabank.com
Other Guarantees (Including issuance of letter of comfort for buyer’s credit: Rs.170 + 3.30% p.a. (Min. 170 + 1.65% charges for 2 quarters)
* Source: www.ucobank.com
Bank of Baroda (BOB): Letter of Comfort issued for availing Buyer’s Credit
|2.4 (d)||Letter of Comfort issued for availing Buyer’s Credit||
* Source: www.bankofbaroda.com
Punjab National Bank (PNB): Incase buyers credit is taken from non PNB branches cost goes up by 0.60% on per annum basis.
- Buyer’s Credit availed with PNB branches – 0.25% p.m. for specified period of liability with s min. of 0.40%, subject to min. of Rs.1000/- per guarantee
- Buyer’s credit availed with other banks – 0.30% p.m. for specified period of liability with a min. of 0.50%, subject to min. of Rs.1000/- per guarantee
* Source: www.pnbindia.in
List of services charges does not specifically mention lou charges. Thus assuming All other guarantees will become applicable :
0.1685% per month for the specified period of liability plus additional 3 months, subject to a minimum of 0.2809%.
Letter of Comfort / Letter of undertaking / Letter of Guarantee etc for Buyers Credit Charges : 0.15% p.m. ( Min. 0.25%)
Other Bank charges which will be updated shortly are: Bank of India (BOI), Oriental Bank of Commerce (OBC), Indian Overseas Bank (IOB), ICICI Bank, IDBI Bank, Yes Bank, Indusind Bank, & Union Bank of India (UBI)