1. Loan against Trust Receipt (LTR): LTR may provide when the documents
covering an import shipment are given without payment. Importer will hold the
goods of their sale
proceeds in trust for the bank; until the loan allowed against the Trust Receipt is fully paid for a period of 30 to 180 days depends on nature
& amount of
imported goods.
2. Payment against Documents (PAD): It
is a post-import finance to settle the
properly drawn import bills received by the bank in case adequate fund is not
available in client’s account.
3. Loan against Imported Merchandise (LIM): It may be allowed on pledge of goods, retaining margin
'prescribed on their landed cost, depending of their categories. The Bank obtains a letter of undertaking and indemnity from the
parties, before getting the goods cleared through LIM account.
LIM
may be created in two ways:
a) LIM on importer's request: In some cases the importer can’t able to retire the
bill
by his own source of fund, he may request the bank to clear the
goods by creating LIM
Account.
b) Forced LIM: In some cases importer do not come forward to retire the goods. In these cases the bank themselves arrange to retire the goods
by pledge in Godown
under
bank’s
lock & key. This type
of
payment is
called forced LIM.