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.
Minimum : RM200.00

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