What you mean by Buyer Credit Eligibility Criteria?
This type of facility is generally offered to importer for the purpose to finance their capital goods wherein overseas lender such as financial institutions aid to support them. These credits are preferred by international trading buyers as it provides the accessibility to purchase goods at lower rates as compared to purchasing via domestic. Lender finance to those buyers who purchase large order with minimal risk.
Buyer Credit Eligibility Criteria Eligibility Criteria depends on various factors like age of individual, repayment history, business sales/turnover& Creditworthiness ...etc.
Eligibility Criteria• Individual involved in importing & exporting of goods• Compliance should be with applicable Trade as per Credit guidelines by their constituents• Person resident in India acting as an importer
Note: - You can avail up to 85% of contract value as a loan amount
It's a short-term loan offered to buyers from overseas banks to purchase goods at lower rates compared to usual rates. Even exporters are guaranteed their payment will be paid on time without any default taking place. What are the benefits of buyer credit?
This facility enables buyers to purchase goods at a lower rate with an extending date of making payment to exporter. Also, buyer get the chances to negotiate better discounts & avail the credit facility.
Importers enter into agreement with suppliers for import goods wherein financial institutions play an important role in providing a line of credit with overseas banks to help. Overseas banks pay directly to supplier before the due date & the buyer pay to overseas bank as per the commitments.
It's easy to apply just submit your request letter through online or offline by nearest bank & fill the application form with correct values, make sure you carry all the necessary documents.