Non-Fund Based Limits (LC / BG)

Letters of Credit and Bank Guarantees to build buyer and supplier confidence without cash outlay.

Non-Fund Based Limits (LC / BG)
About Non-Fund Based Limits (LC / BG)
Industrial Loan

What is a Non-Fund Based Limits (LC / BG)?

Non-Fund Based (NFB) facilities — Letter of Credit (LC) and Bank Guarantee (BG) — are contingent obligations where the bank assures payment or performance on your behalf without immediate cash outflow. LCs are used for domestic and import purchases; BGs are used for tender, performance, or financial obligations.

Who is Eligible?

  • Existing business account holders with a satisfactory credit history
  • Manufacturing, trading, and construction companies
  • Importers requiring LC for goods procurement
  • Businesses submitting government tenders requiring BG

Key Benefits

  • No immediate fund outflow
  • Builds supplier and buyer confidence
  • Unlocks bulk purchasing at better prices
  • Tender BG enables participation in large government projects
  • Import LC reduces import credit risk

Documents Required

Bank account with sufficient credit history
Purchase order / import invoice
Audited financials and GST returns
KYC documents
Security margin (cash or collateral as per bank norms)

Step-by-Step Process

1

Requirement Analysis

We understand whether you need LC, performance BG, or financial BG.

2

Limit Sanction

We help establish an NFB sub-limit within your existing or new credit facility.

3

Documentation

We prepare the necessary application and underlying transaction documents.

4

Bank Issuance

Bank issues the LC or BG in favor of beneficiary.

5

Ongoing Management

We track expiry, amendments, and advise on renewal.

Interested in a Non-Fund Based Limits (LC / BG)?

Tell us your requirement and we will assess your eligibility in 24 hours — for free.

Apply Now +91 97146 31847