Sample format of Letter of Undertaking / Comfort (LOU / LOC)

To Avail Buyer’s Credit….. Email: sanjaymandavia@gmail.com, M: +919825560186

As mentioned in article “Procedure for Buyers Credit“,  Post receipt of offer letter from Indian Bank overseas branch or Foreign Bank, Indian Bank has to send Letter of Comfort / Undertaking (a type of Bank Guarantee) to overseas bank as security before funding the transaction.

Below link gives a sample format, to give an idea of the content of such LOU / LOC. Please note each bank and some times each bank branch has a different format. Thus, at every transaction, insist your buyers credit consultant to give you format of LOU / LOC along with offer letter to avoid any complication in the transaction.

LOU LOC FORMAT(LETTER OF UNDERTAKING)

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About Sanjay Mandavia

Trade Finance Consultant
This entry was posted in Buyers Credit, Letter of Comfort (LOC) / Letter of Undertaking (LOU) and tagged , , , , . Bookmark the permalink.

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