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

Min : RM50.00

2.   Usance LC Commission

0.1% of LC amount in RM equivalent per month or part thereof

Min : 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

Min : 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

Min : RM50.00

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

Min : RM50.00

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

Min : RM50.00

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

Min : RM50.00

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

Min : 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
5.   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)
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

Min : RM200.00

Amendment: Commission

Refer to amendment charges as per item (3) above.

Min : RM150.00

b)   Standby LC:
Issuance: Commission

0.125% of LC amount in RM equivalent per month or part thereof

Min : RM200.00

Amendment: Commission

Refer to amendment charges as per item (3) above.

Min : RM50.00

c)   Revolving LC:
Issuance: Commission

0.1% of LC amount in RM equivalent per month or part thereof

Min : RM50.00

Amendment: Commission

Refer to amendment charges as per item (3) above.

Min : 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

Min: 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

Product Disclosure Sheet

Click here to download the PDS for LC-i


Forms

Click here to download the Application Form for LC-i

Click here to download the Amendment Form for LC-i