Inland/Local LC Discounting :
Inland Letter of Credit (ILC) is issued to meet out the credit requirement for domestic trade. Usance ILC is opened where payments are done after a fixed Usance Tenor. Seller of the goods availing finance by tendering the bills along with the ILC to a banker before the proceeds is realized is called ILC discounting.
Pan capital plays a key role in discounting and handling Inland LC by identifying a third Bank (Financing Bank) providing competitive interest rate from leading PSU and Pvt Banks.