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.
NoBroker InstaCash Loan
Get upto Rs. 10 Lakhs Instantly in your Bank Account with hassle free auto repayment.
Instant approval and disbursement
Interest rate starting 12.99%
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.
Get Up to Rs. 10 Lacs Instantly in Your Bank Account Via NoBroker Banking ServicesRead more
What is IVR in Banking?
Your Feedback Matters! How was this Answer?
NoBroker Cash Loans
✔
Max Funding✔
Lowest Interest Rates✔
Quick Sanction✔
Doorstep Assistance✔
No Hidden Charges
Get Cash Loan
Apply Now
Know your Borrowing Capacity
Check Eligibility
Compare Loans
Calculate Your EMI Now
What is LG Code in HDFC Bank?
Arshi
304 Views
1
7 months
2024-10-25T10:20:27+00:00 2024-10-30T16:19:21+00:00Comment
Share