Import Finance

Import Finance : Features

All the facilities are subject to the prevalent rules of the Bank/RBI guidelines.

The various facilities provided are:

• Collection of import bill
• Opening of Import L/Cs (Sight/DA)
• Financing of import by way of foreign currency loans
• Issuing guarantees, etc. on behalf of importers

Collection of Import Bills

The import bills are collected through the 236 authorised branches at very competitive rates. The bank has correspondent relationship with reputed international banks throughout the world and can provide the services to importers who may be importing from any part of the globe.

Letter of Credit

Bank of Baroda offers L/C facility for the purchase of goods in the international market. Being a well-known international bank of repute, the L/Cs of the Bank of Baroda are well accepted in the international market.
With the Letter of Credit of Bank of Baroda, importers can build up better trust and confidence in their suppliers, and develop other business relationship at a much faster pace.
The L/C facility can be granted to the importers after assessing their requirement/credit worthiness/financial strength and other parameters to the satisfaction of the bank.

Bank Guarantees

Bank of Baroda on behalf of importers/ other customers’ issues guarantees in favour of beneficiaries abroad. The guarantees can be both performance and financial.

Trade Credit Through Standby Letter of Credit (SBLC)

Facilitates importers in India to raise foreign currency funding up to operating cycle from our overseas branches. Following are the highlights of our product:

• It helps the importer to obtain foreign currency funds from abroad by facilitating the issuance of a SBLC from our domestic branches in India who guarantees payment to the funding bank if the client fails to make the payment on the due date.
• The product envisages to provide finance to those import transactions wherein documents are received by any Indian bank from any overseas bank on sight/usance basis under collection or under LC basis.
• Helps importers import capital and non-capital goods by raising funds under this product route for up to 3/1 year or less respectively based on varying requirements of individual business.
• Facilitates importer by providing them the competitive rate of interest on foreign currency funds raised through our wide network of foreign branches spread across the globe.

UPAS (Usance Payable at Sight) LC

It is an import financing scheme to finance importers. Following are the highlights of our product:

• Facilitates foreign currency funding for trade credits to importers in India at competitive pricing for extended period as per the operating cycle.
• The product helps in providing a mechanism whereby a Usance LC is paid on sight basis to the exporter or seller, while the payment settlement from the importer or buyer to the LC issuing bank is made on due date as per the contracted terms.
• UPAS LC provides payment solution for the exporters at sight basis and simultaneously provides extended payment terms to importers.
• It facilitates importers to negotiate got good price in sales contract as sellers or exporters receive payment immediately after the shipment.