I got to know about the LG code a few months ago when I was updating my employer’s details at HDFC Bank. It is nothing, but a document provided by the bank which gives a guarantee of payment to the exporter if the applicant fails to fulfil their contractual obligations. It was my grandfather who explained to me what is LG code in HDFC Bank.
What is LG Code in HDFC Bank Salary Account?
LG is a written commitment that provides an assurance by the bank to facilitate smooth flow of funds between the buyer and the seller. It is a confirmation that provides a guarantee of payment if all the terms and conditions of an L/C are complied with. I also found some unique features of LC services in HDFC Bank.
You get the expertise from Certified Trade Specialists
You can apply for LC online via the TradeOnNet portal
The services are accessible widely with
100% branches equipped to issue all types of LCs.
So, LG stands for a letter of guarantee, also known as a letter of credit, and is a document that ensures timely payment from the buyer.
I also did some research to understand
what is LC code HDFC and found their charges and commission, which I have shared below.
Description |
Documentation Charges |
Commision |
SWIFT/Courier |
Letter of Credit FCY issuance (FCY/LCY) |
Rs. 1,500 |
Fedai charges * / IBA ** Min ₹ 2,000. |
FCY - Rs. 2,000 SFMS / LCY - Rs. 1,000 |
SBLC Issuance (FCY/LCY) |
Rs. 1,500 |
1.8% Per annum, min Rs. 2,000 |
FCY - Rs. 2,000 SFMS / LCY - Rs. 1,000 |
Guarantee issuance (Financial, Performance) |
Rs. 1,500 |
1.8% Per annum, min Rs. 2,000 |
Rs. 1,000 |
I hope this was helpful.
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What is LG Code in HDFC Bank?
Arshi
6.2k Views
1
6 months
2024-10-25T10:20:27+00:00 2024-10-30T16:19:21+00:00Comment
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