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Letter of credit

A Letter of Credit is a conditional payment mechanism under which the issuing bank irrevocably promises to pay the seller/supplier if presented documents comply to the LC’s terms and conditions.

Morabaha LC

  • A morabaha LC is a Letter of credit issued under coverage of credit facility only and customer will settle the LC in installment according to credit facility terms and conditions. 
  • Direct payment to suppliers against shipping merchandise to Kuwait Finance House.

 

Product benefit

  1. Flexible payment plans.
  2. KFH global network of correspondent banks.
  3. According to sharia principles.
  4. Effective communication with our trade finance experts.

 

Fees

KFH Tariff list: CLICK HERE

 

Eligibility

  1. Credit Facility clients.
  2. Terms and conditions.
  3. According to credit facility terms and conditions.

 

Application

  1. Application for issuing letter of credit : CLICK HERE 
  2. Application for amending letter of credit : CLICK HERE 
  3. Application for direct payment : CLICK HERE 
  4. Cancellation of LG & LC: CLICK HERE

A normal LC is letter of credit issued under coverage of credit facility or funded facility. A customer could settle the LC from his own account.

 

Product benefit

  1. Competitive issuing fees.
  2. KFH global network of correspondent banks.
  3. Effective communication with our trade finance experts.

 

Fees

KFH Tariff list: CLICK HERE

 

Eligibility

  1. Credit Facility clients.
  2. Walk in client.
  3. Account with KFH.

 

Terms and conditions

  1. According to credit facility terms and conditions.
  2. Link to application from the back.

 

Application

  1. Application for issuing normal letter of credit : CLICK HERE 
  2. Application for amending letter of credit : CLICK HERE 
  3. Cancellation of LG & LC: CLICK HERE