Letter of Credit-i (LC-i)
LC-i is a written undertaking by the Bank at your request as a Buyer/Applicant to pay the Seller/ Beneficiary a certain sum of money as stipulated in the LC-i provided that the Seller/Beneficiary complies with the terms and conditions of the LC-i. Our experience shows that our undertaking to pay Seller/Beneficiary is accepted widely throughout the world.
LC-i is issued under Murabahah contract and thereafter the goods purchased will be sold to you at a marked up price for a deferred payment. Alternatively on negotiation of the LC you may pay the negotiated amount at cost.
Benefits & Features
Benefits of using our products:
- No ‘transit interest’ charges as payment to Seller/Beneficiary only upon acceptance of documents
- No hidden costs
- Provides platform for both parties to agree trade terms and efficient payment arrangement
- Fax application is also accepted if prearranged
- Upon issuance, we will fax you the copy of the LC-i for your reference
- You may also request us to purchase the necessary marine cargo takaful on your behalf
Cut-off time
Application received by 1:00pm* will be processed on the same day.
* Subject to all terms and conditions complied with
Fees & Charges
Subject |
Charges |
Rate / Amount |
|---|---|---|
| 1. Sight LC | Commission |
0.1% of LC amount in RM equivalent per month or part thereof Minimum : RM50.00 |
| 2. Usance LC | Commission |
0.1% of LC amount in RM equivalent per month or part thereof Minimum : RM50.00 In addition, the acceptance commission of 0.1% per month will be charged from the acceptance date till maturity date |
| 3. Amendment | ||
| Amount increased | Commission | 0.1% of the increased amount in RM equivalent per month or part thereof from the date of amendment until expiry date Minimum : 50.00 |
| Extension of expiry date | Commission |
0.1% of LC amount in RM equivalent per month or part thereof from extension date until new expiry date Minimum : 50.00 |
| Amount increase and extension of expiry date | Commission |
0.1% of the outstanding LC amount plus increased amount (new amount) in RM equivalent per month or part thereof from the extension date until new expiry date Minimum : 50.00 |
| Amount decrease and extension of expiry date | Commission |
0.1% of LC amount in RM equivalent per month or part thereof from the extension date to the new expiry date on the decreased or remaining balance Minimum : 50.00 |
| Amount decrease | Commission | RM50.00 flat |
| Amount increase and shorten expiry date | Commission |
0.1% of the increase amount (new amount) in RM equivalent from the amendment date to new expiry date Minimum : 50.00 |
| Remaining balance (as a result of partial negotiation) and extension of expiry date. | Commission |
0.1% of remaining balances of LC amount in RM equivalent per month or part thereof from the old expiry date to new expiry date Minimum : RM50.00 |
| Other amendment(s) | Commission | RM50.00 flat per request |
| 4. Discrepancy Fee | ||
| Local LC | Commission | RM100.00 per transaction |
| Foreign LC | Commission | USD50.00 per transaction |
| 5. Foreign/Local LC | ||
| Issuance | SWIFT MT700 | RM60.00 |
| Amendment | SWIFT MT707 | RM50.00 |
| 6. Addtional: Issuance and Amendment | ||
| Local LC (LC Proper) | Courier | Actual direct cost incurred |
| 7. Negotiation of LC Expired | Commission | 0.1% of the negotiation amount in RM equivalent per month or part there of from the expiry date until the negotiation date (without grace period). Minimum : 50.00 |
| 8. Other types of LC | ||
| a) Back to Back LC: | ||
| Issuance: | Commission |
0.1% of LC amount in RM equivalent per month or part thereof Minimum : RM200.00 |
| Amendment: | Commission |
Refer to amendment charges as per item (3) above. Minimum : RM150.00 |
| b) Revolving LC: | ||
| Issuance: | Commission |
0.1% of LC amount in RM equivalent per month or part thereof Minimum : RM50.00 |
| Amendment: | Commission |
Refer to amendment charges as per item (3) above. Minimum : RM50.00 |
| 9. Endorsement of BL/AWB: | ||
| a) Advance Set (BL) | Handling fee | RM100.00 flat rate |
| Stamp Duty | RM10.00 for Indemnity Letter | |
| b) AWB | Handling fee |
0.1% of Invoice value Minimum : RM100.00 |
| Stamp Duty | RM10.00 for Indemnity Letter | |
| c) Endorsement of full set of documents | No charges impose | |
| 10. Others | ||
| Fax | Out of pocket expenses | Actual direct cost Incurred |
| Photocopy | Out of pocket expenses | Actual direct cost Incurred |
| Other direct cost | Out of pocket expenses | Actual direct cost Incurred |
| 11. Checking documents a) Discrepant documents |
Checking fee | No charges impose |
| 12. Others Charges | SWIFT | Local : RM25.00 |
| Foreign : RM50.00 | ||
| RENTAS | RM2.00 per RENTAS application | |
| Interbank GIRO (IBG) | RM0.10 |
Product Disclosure Sheet
Click here to download the PDS for LC-i
Click here to download the PDS for LC-i – Malay Version
Forms
Click here to download the Application Form for LC-i
Click here to download the Amendment Form for LC-i
Click here to download Application Form for ezLC
