Standby Letter of Credit-i (SBLC-i)
Standby Letter of Credit-i is often used as a financial guarantee. It ensures payment if and when the applicant fails to repay an advancement made to him/her; or for the beneficiary to demand payment when the applicant fails on his/her part of the agreement. It is also intended to cover any NON-PERFORMANCE or failure of the applicant to fulfill a contractual commitment with a third party.
In countries where banks are prohibited from issuing guarantees, SBLC-i is the most appropriate method used. It guarantees applicant’s performance, indebtedness or repayment. SBLC-i is activated in the event of ‘default’ or ‘non-performance’ by the applicant. It is a substitute for a guarantee and governed by Uniform Custom Practice 600.
Benefits & Features
Benefits of using our products:
- Our SBLC-i is widely accepted and can be leveraged to enhance your reputation
- Unlocked your capital from required deposits or payment in advance margin adjustment
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. Issuance | Commission |
0.125% of SBLC amount in RM equivalent per month or part thereof/ rate as per
LO. |
| 2. 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/ rate as per LO. Minimum : RM50.00 |
| • Extension of expiry date | Commission |
0.1% of SBLC amount in RM equivalent per month or part thereof from extension
date until new expiry date/ rate as per LO. Minimum : RM50.00 |
| • Amount increase and extension of expiry date | Commission |
0.1% of the outstanding SBLC amount plus increased amount (new amount) in RM
equivalent per month or part thereof from the extension date until new expiry
date/ rate as per LO. Minimum : RM50.00 |
| • Amount decrease and extension of expiry date |
Commission |
0.1% of SBLC amount in RM equivalent per month or part thereof from the
extension date to the new expiry date on the decreased or remaining balance/
rate as per LO. Minimum : RM50.00 |
| • Amount decrease | Commission | RM50.00 flat |
| • Amount increase and shorten expiry date | Commission |
0.1% of the increase amount in RM equivalent from the amendment date to new
expiry date/ rate as per LO. Minimum : RM50.00 |
| • Remaining balance (as a result of partial negotiation) and extension of expiry date | Commission |
0.1% of remaining balances of SBLC amount in RM equivalent per month or part
thereof from the extension date until new expiry date/ rate as per LO. Minimum : RM50.00 |
| • Other amendment(s) | Commission | RM50.00 flat per request |
| 3. Foreign/ Local SBLC | ||
| Issuance | SWIFT MT760 SWIFT MT767 |
RM60.00 |
| Amendment | SWIFT MT760 SWIFT MT767 |
RM50.00 |
| Others | SWIFT MT760 SWIFT MT767 |
Local: RM25.00 Foreign: RM50.00 |
| 4. Overdue Bills | Ta’widh | As per Ta’widh formula: = FV x r x t 36500 Where, FV = outstanding overdue amount (outstanding amount = cost + profit overdue). r = IIMM rate. t = no of days due from the original maturity date. |
Product Disclosure Sheet
Click here to download the PDS for SBLC-i
Click here to download the PDS for SBLC-i – Malay Version
Forms
Click here to download the Application Form for SBLC-i
Click here to download the Amendment Form for SBLC-i
