Trade Finance Products

Import and Export LCs

A Letter of Credit is an undertaking issued by a bank (issuing bank) for the account of the buyer (the applicant) to pay the beneficiary (the seller), provided that the terms of the Letter of Credit are complied with.
nIt is generally used to facilitate the importation or exportation of goods and services as well as local trade.
 

Benefits/Features

Eligibility

Pricing

Safe and secure way to import or export

For both account and non-account holders

As per tariff guide

Competitive pricing

Must be able to secure the letters of credit with 100% cash cover or equivalent

 

The bank acts as intermediary between the importer and exporter to guarantee payment

Permanent business locations

 

Flexible security requirements i.e. log books, title deed, residential license,  debentures, shares, Treasury Bills, etc

Maximum period, 12 months (1 year)

 

Credit Life Insurance

 

 

 

Guarantees

  • A written irrevocable undertaking issued by the bank to pay to the beneficiary, a specific sum of money on demand in the event that its customer, (applicant) has not fulfilled his contractual obligations within the validity of the guarantee. 
  • Guarantees can be local or foreign. It helps to ensure that customers meet their performance obligations under contracts with their clients e.g. guarantee available includes bid bond, performance bond, advance payment bonds, credit guarantee, etc.

Benefits/Features

Eligibility

Pricing

Bid bonds can be unsecured up to Tshs 10,000,000

Accessible to Equity Bank customers who require a guarantee or bond from the bank

Bid bonds - 1% minimum Tshs .100,000

Flexible securities required e.g. cash, land, motor vehicles, Treasury Bills, etc

 

Others - 3% p.a. minimum Tshs. 100,000

Allows customer to enjoy supplier credit period

 

 

Cheaper way of doing business (non funded)

 

 

Credit Life Insurance

 

 

         


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