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. 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 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
