The documentary letter of credit is defined as an application introduced by the dealing customer to pay the purchase price of abroad commodities. Where it considers one of the most important banking services introduced by the banks, and it is the bases of the commercial movement (export-import) all over the world that are implemented through bank correspondences network around the world.
The Islamic Banks Implement This Service by Two Ways:
• The first way: The agent has to pay the full amount for the bank where the bank will open the credit and pay the credit value amount by the required currency, here the Islamic bank will receive the service fees.
• The second way: Is by executing the documentary letter of credit as banking credit made by paying the dealing customer only part of the credit value, and the Islamic bank will complete the payment of the credit as a credit operation according to the Islamic sharia by one of the previously mentioned forms.
1- The customer submits an application to open a documentary credit that includes all the required details related to that purpose, supported by documents.
2- Fill out the accreditation opening form, as well as the accreditation contract, signed and stamped by the customer.
3- Commissions are collected according to the table of banking operations rates.
4- Providing the required insurances and guarantees to the bank.
For more details, you can visit one of our branches and talk to the concerned employee or call the number 6070.