Islamic Letter of Credit
Islamic Letter of Credit
Riyad Bank acts as per your instructions for your purchases to secure goods and manage payment risks.
Riyad Bank’s Islamic Letter of Credit is a Shari’a compliant method that enables you to import goods on the basis of Murabaha. It improves your importation process. Riyad Bank issues Islamic Letters of Credit on behalf of the importer as per the conditions and all information provided such as currency, amount, description of goods, payment type, required document and other terms.
Payment is then made against presentation of satisfactory documents which follows by Riyad Bank selling the imported goods to the client.
Riyad Bank’s Islamic Letter of Credit is a Shari’a compliant method that enables you to import goods on the basis of Murabaha. It improves your importation process. Riyad Bank issues Islamic Letters of Credit on behalf of the importer as per the conditions and all information provided such as currency, amount, description of goods, payment type, required document and other terms.
Payment is then made against presentation of satisfactory documents which follows by Riyad Bank selling the imported goods to the client.
Benefits:
- Issued on the basis of Murabaha
- Offers all the functionalities of traditional Letter of Credit
- Secures and binds the “sale” strictly to the agreement
- Secured and fully transparent
- Offers all the functionalities of the traditional Letter of Credit
- Convenience to make payment on arrival of documents (Sight LC) or after an agreed time period under Islamic structure.
- Upon the receipt , the bank sells goods to the importer on Murabaha basis at agreed price including, profit and fees