The seller/buyer does not have to go to the bank for sanction of fresh limits every time he gets a new order.

  1. Revolving Letter of Credit is used when the delivery of goods is in form of partial/ multiple shipments.
  2. Revolving Letter of Credit keeps on revolving and is not restricted to a single transaction.
  3. Revolving Letter of Credit (LC) can be utilized for subsequent business transactions over a period of time on a continuous basis to the extent of limit sanctioned.
  4. The seller/buyer does not have to go to the bank for sanction of fresh limits every time he gets a new order for executing the same.
  5. Instead of arranging a new L/C for each separate shipment, the buyer establishes a L/C that revolves either in value (a fixed amount is available which is replenished when exhausted) or in time (an amount is available in fixed installments over a period such as week, month, or year).
  6. L/Cs revolving in time is of two types: In the cumulative type the sum unutilized in a period is carried over to be utilized in the next period; whereas in the non-cumulative type it is not carried over.

The borrower and/or the guarantors have to provide the following documents to the banks or the lending institutions while submitting Revolving Letter of Credit Application. Certain documents may be demanded by the bank or the lending institutions in post sanction phase or on periodical basis.

  1. Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence or Office Premises, etc,.
  2. Identity Proof: Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by Government Agencies, etc,
  3. Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease Agreement along with the latest Rent paid Receipt.
  4. Business Profile On Company’s Letterhead.
  5. Partnership deed in case of partnership firms.
  6. Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds, Form 32 in for Addition or Deletion of Directors in case of companies.
  7. Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered Accountant wherever applicable).
  8. Last one year Bank statement of the Firm.
  9. If existing loan, then sanctioning letter and repayment schedule of the same.
  10. Firm/Company’s PAN Cards.
  11. Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
  12. Last one year Bank statement of Individuals, Partners, Directors.
  13. SEBI formalities in case of listed companies.
  14. Share Holding pattern of Directors duly certified by a Chartered Accountant.
  15. List of the Existing Directors of the company from the Registrar of the Companies.

In India there are many Banks Lender who provide Home Loan / Housing Loan.
Process of this bank / lender is same.

  1. Application form is login.
  2. Personal Discussion is done by bank officer with customer.
  3. Bank's Field Investigation (All documents are Verify by bank which given with application form).
  4. Bank check CIBIL report, if applicable.
  5. Sanction Letter.
  6. Signing of agreements and submitting post-dated cheques.
  7. Disbursement.