Buyer’s Credit is the credit availed by an Importer (Buyer) from overseas lenders i.e. banks and financial institutions for payment of his imports on a due date. The overseas banks usually lend the Importer (Buyer) based on the letter of comfort (a Bank Guarantee) issued by the Importers (Buyer’s) Bank. In fact the Importers Bank brokers between the Importer and the overseas lender for arranging buyers credit by issuing its Letter of Comfort for a fee. Buyer’s credit helps local importers access cheaper foreign funds close to LIBOR rates as against local sources of funding which are costly compared to LIBOR rates. Buyers Credit for goods purchases can be for a period of up to 6 months
There are several steps involved in the buyer's credit process.
The exporter first enters into a commercial contract with a foreign buyer or importer. The contract specifies the goods or services supplied along with prices, payment terms, etc.
The buyer then obtains credit from a financial institution for the purchase. An export credit agency based in the exporter’s country provides a guarantee to the lending bank to cover the risk of default by the buyer.
Once the exporter ships the goods, the lending bank pays the exporter according to the contract terms. The buyer makes principal and interest payments to the lending bank according to the loan agreement until the loan is repaid in full.
| Sr. No | Self Employed Individuals having | |||
|---|---|---|---|---|
| Proprietorship Firm | Partnership Firm | Private Limited and Limited Company | ||
| KYC Documents | ||||
| 1 | PAN Card | PAN Card | PAN Card | |
| 2 | Aadhar Card | Aadhar Card | Aadhar Card | |
| 3 | Current resident address proof | Current resident address proof | Current resident address proof | |
| 4 | Office Address Proof | Office Address Proof | Office Address Proof | |
| 5 | GST Registration Certificate | GST Registration Certificate | GST Registration Certificate | |
| 6 | Partnership Deed | MOA and AOA | ||
| 7 | List of partners and shareholding pattern onletter head | List of Directors and Shareholding pattern on letter head | ||
| Income Documents | ||||
| 1 | GST Returns – 1 Year | GST Returns – 1 Year | GST Returns – 1 Year | |
| 2 | Income Tax Returns – 3 years | Income Tax Returns – 3 years | Income Tax Returns – 3 years | |
| 3 | Bank Statement – 1 year | Bank Statement – 1 year | Bank Statement – 1 year | |
| Additional Documents Generally Required | ||||
| 1 | Existing loan – Sanction letter (if any) | Existing loan – Sanction letter (if any) | Existing loan – Sanction letter (if any) | |
| Sr. No | Document |
|---|---|
| 1 | Sale Agreement or Sale Deed with Registration Receipt, Stamp Duty, Index II |
| 2 | Chain of Agreement
with Registration Receipt, Stamp Duty, Index II This is required is there are resale transactions |
| 3 | Share Certificate |
| 4 | Occupancy Certificate ( OC ) |
| 5 | Commence Certificate ( CC ) |
| 6 | Approved Building Plans |
| 7 | Building Completion Certificate |
| 8 | Society Registration Certificate |
| 9 | Tax Paid Challan |
| 10 | Society Maintenance Receipt |
| Note: - As there are different properties types like residential, commercial, industrial, etc. Property documents required will always change based on type of property and location at which the property is located. We have just given the general list of property documents. | |
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