Letter of credit
A letter of credit (hereafter referred to as “LC”) is a payment method that arranges conflict of interests between the buyer and the seller and used with the purpose to decrease the risk caused by the payment to be made and default of product supply.
MNT
Fees and commissions for the issuing LC | |
|---|---|
To issue an LC | 0.2% /min. USD 150.0, max USD 350.0/ |
To examine LC documentation and to make the payment | USD 50.0 |
Additional services (fees deducted based on the customer’s request) | |
To increase the amount of LC (calculated from increased amount) | 0.2% /min. USD 50.0, max. USD 150.0/ |
To amend LC’s terms and conditions | USD 50.0 |
To cancel a LC | USD 50.0 |
For each set of non-compliant documentation | USD 50.0 |
To dispatch documents by post | According to DHL rates |
The risk commission will be charged additionally for issuance of uncovered LC. | According to contract: (LC in foreign currency - min. USD 150.0) |
According to contract: (LC in domestic currency – min. MNT 150,000.0 ) | |
Any other banking fees and commissions related to the LC shall be borne by the LC applicant. | |
For the confirmed LC, foreign bank’s fees and commissions will be added. | |
Fees and commissions for the receiving and advising LC | |
|---|---|
To advise issued LC | USD 30.0 |
To examine LC documentation and make the payment | 0.15% /min. USD 75.0, max. USD 350.0/ |
Additional services (fees deducted based on the customer’s request) | |
To advise amendments of a LC | USD 10.0 |
To advise cancellation of a LC | USD 25.0 |
Risk commission of confirming LC issued by other banks | Set by the Credit Committee (min.USD150.0) |
To dispatch documentation by post | According to DHL rates |
| Any other banking fees and cost related to a LC shall be borne by the beneficiary. | |
Recommended products
We offer local and overseas Letter of Guarantee services with the following terms and conditions.
To quickly finance working capital based on the export LC without requiring a collateral.
You are able use this service in order to find a solution in a short time for all type of your financial demand.
We offer you a product to finance payments and settlements between freight forwarding companies, customs authorities, and importing organizations.