What's the difference between a bank guarantee and a letter of credit?

What's the difference between a bank guarantee and a letter of credit?
by

1 Answer

Answer :

Letter of credit is a financial paper for guaranteed payments, whereas a bank guarantee is a guarantee given by the bank to the beneficiary on account of the applicant, to begin payment if the applicant defaults in payment. If you're looking for one, then Pepagora Trade Finance offers these services
by
selected by

Related questions

Banks issue a letter to beneficiary on behalf of its constituents like guarantee for making payment on their behalf on fulfilment of its terms and conditions. What is this arrangement known in banking context? A. Line of Credit B. Loan to Client C. Loan on Credit D. Letter of Credit

Description : Banks issue a letter to beneficiary on behalf of its constituents like guarantee for making payment on their behalf on fulfilment of its terms and conditions. What is this arrangement known in banking context? A. Line of Credit B. Loan to Client C. Loan on Credit D. Letter of Credit

Last Answer : D. Letter of Credit Explanation: A letter issued by a bank to another bank (especially one in a different country) to serve as a guarantee for payments made to a specified person under specified conditions.

What is difference between banks & HFCs? A. HFCs cannot accept demand deposits B. It cannot issue cheques drawn on itself C. deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of HFCs D. All of the Above E. None of the Above

Description : What is difference between banks & HFCs? A. HFCs cannot accept demand deposits B. It cannot issue cheques drawn on itself C. deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of HFCs D. All of the Above E. None of the Above

Last Answer : D. All of the Above Explanation: HFCs are doing functions similar to banks as banks also provides housing loans. However, there are a few differences as given below: ♦ HFCs cannot accept demand ... Credit Guarantee Corporation(DICGC) is not available to depositors of HFCs, unlike in case of banks.

_________ are safer than Post Office Schemes as that are covered by the Deposit Insurance and Credit Guarantee Corporation(DICGC) A. Fixed Deposit B. Demand Deposit C. Flexi-Fixed Deposit D. All of the Above

Description : _________ are safer than Post Office Schemes as that are covered by the Deposit Insurance and Credit Guarantee Corporation(DICGC) A. Fixed Deposit B. Demand Deposit C. Flexi-Fixed Deposit D. All of the Above

Last Answer : A. Fixed Deposit Explanation: Fixed Deposit investments are safer than Post Office Schemes as they are covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC).

B) CaixaBank Explanation: As per the agreement, they will expand banks‘ guarantee transaction businesses by jointly providing credit to Indian-Spanish joint ventures and Indian local enterprises The banks will collaborate in areas of mutual interest such as syndicated loan business, guarantee transactions, trade finance and export credit agency finance, infrastructure finance and networking services, among others.

Description : B) CaixaBank Explanation: As per the agreement, they will expand banks guarantee transaction businesses by jointly providing credit to Indian-Spanish joint ventures and Indian local ... finance and export credit agency finance, infrastructure finance and networking services, among others.

Last Answer : Recently an Indian bank launched next generation features on its app „iMobile‟ which will enable customers to instantly pay taxes and book railway tickets within the app. Name the bank. A) Federal Bank B) Punjab National Bank C) Kotak Mahindra Bank D) ICICI Bank E) Bandhan Bank

Deposit Insurance and Credit Guarantee Corporation ( DICGC) is a subsidiary of ________ A. RBI B. IDBI C. 34 Government of India owned / controlled institutions D. None of the Above

Description : Deposit Insurance and Credit Guarantee Corporation ( DICGC) is a subsidiary of ________ A. RBI B. IDBI C. 34 Government of India owned / controlled institutions D. None of the Above

Last Answer : A. RBI Explanation: Deposit Insurance and Credit Guarantee Corporation ( DICGC) is a subsidiary of Reserve Bank of India. It was established under Deposit Insurance and Credit Guarantee Corporation Act, 1961 for ... recurring deposits for up to the limit of Rs. 100,000 of each deposits in a bank.

Which of the following is/are an entity founded by SIDBI? A. Credit Guarantee Fund Trust for Micro and Small Enterprises B. SIDBI Venture Capital Ltd C. ISARC D. All of the Above

Description : Which of the following is/are an entity founded by SIDBI? A. Credit Guarantee Fund Trust for Micro and Small Enterprises B. SIDBI Venture Capital Ltd C. ISARC D. All of the Above

Last Answer : D. All of the Above Explanation: Credit Guarantee Fund Trust for Micro and Small Enterprises - provides collateral-free loans extended to SME. SIDBI Venture Capital Ltd - a venture capital company ... of India Ltd - provides composite ratings to SME. ISARC - India SME Asset Reconstruction Company.

ECGC Limited (Export Credit Guarantee Corporation of India Ltd) is a company wholly owned by? A. RBI B. Government Of India C. IRDAI D. NABARD

Description : ECGC Limited (Export Credit Guarantee Corporation of India Ltd) is a company wholly owned by? A. RBI B. Government Of India C. IRDAI D. NABARD

Last Answer : B. Government Of India Explanation: ECGC Ltd. (Export Credit Guarantee Corporation of India Ltd.), wholly owned by Government of India, was set up in 1957 with the objective of ... comprising representatives of the Government, Reserve Bank of India, banking, and insurance and exporting community.

Micro Units Development Refinance Agency (MUDRA) has a corpus of _______, and credit guarantee corpus of ________ A. Rs 25,000 crore and Rs.3,000 crore B. Rs 20,000 crore and Rs.4,000 crore C. Rs 15,000 crore and Rs.4,000 crore D. Rs 20,000 crore and Rs.3,000 crore

Description : Micro Units Development Refinance Agency (MUDRA) has a corpus of _______, and credit guarantee corpus of ________ A. Rs 25,000 crore and Rs.3,000 crore B. Rs 20,000 crore and Rs.4,000 crore C. Rs 15,000 crore and Rs.4,000 crore D. Rs 20,000 crore and Rs.3,000 crore

Last Answer : D. Rs 20,000 crore and Rs.3,000 crore Explanation: The bank will have an initial corpus of Rs 20,000 crore and a credit guarantee fund of and Rs.3,000 crore. The bank will initially ... as a non-banking financial company and a subsidiary of the Small Industries Development Bank of India (SIDBI).

CGTMSE stands for _______ A. Central Government Fund Trust for Medium and Small Enterprises B. Central Government Fund Transfer fund for Medium and Small Enterprises C. Central Government Fund for Medium Size Enterprises D. Credit Guarantee Fund Trust for Micro and Small Enterprises E. None of the Above

Description : CGTMSE stands for _______ A. Central Government Fund Trust for Medium and Small Enterprises B. Central Government Fund Transfer fund for Medium and Small Enterprises C. Central Government Fund for Medium ... D. Credit Guarantee Fund Trust for Micro and Small Enterprises E. None of the Above

Last Answer : D. Credit Guarantee Fund Trust for Micro and Small Enterprises Explanation: Government of India and SIDBI set up the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). The main ... so that the borrowers obtain both term loan and working capital facilities from a single agency.

The credit default spread method of valuation of a guarantee given by a parent company on behalf of its subsidiary involves estimating the value ____________. a) using credit default spread based on the credit rating of the subsidiary b) using credit default spread based on the credit rating of the guarantor c) based on probability of default d) of the guarantee using an option pricing model

Description : The credit default spread method of valuation of a guarantee given by a parent company on behalf of its subsidiary involves estimating the value ____________. a) using credit default spread based on ... guarantor c) based on probability of default d) of the guarantee using an option pricing model

Last Answer : a) using credit default spread based on the credit rating of the subsidiary

Secure communication means a. Protect transmission of credit card number b. Guarantee privacy of customer c. Unauthorized access of payment details d. All the above

Description : Secure communication means a. Protect transmission of credit card number b. Guarantee privacy of customer c. Unauthorized access of payment details d. All the above

Last Answer : d. All the above

Abuse the bank guarantee - How can we ever trust banks again?

Description : Abuse the bank guarantee - How can we ever trust banks again?

Last Answer : What do you mean “again”? An entity whose sole raison dêtre is money and the creation of money through debt and interest, is inherently untrustworthy.

Cheque payment of Postage from the holders of Franking machine licenses can be accepted with bank guarantee. The above said statement is a. True b. False

Description : Cheque payment of Postage from the holders of Franking machine licenses can be accepted with bank guarantee. The above said statement is a. True b. False

Last Answer : b. False

Reserve bank of India is a/an _______. A. statutory corporation. B. company limited by guarantee. C. company limited by shares. D. unlimited company.

Description : Reserve bank of India is a/an _______. A. statutory corporation. B. company limited by guarantee. C. company limited by shares. D. unlimited company.

Last Answer : A. statutory corporation.

Which of these are not the duties of EXIM Bank? (a) Lending/Guarantee ; (b) Advisory ; (c) Promotional ; (d) Trading activities

Description : Which of these are not the duties of EXIM Bank? (a) Lending/Guarantee ; (b) Advisory ; (c) Promotional ; (d) Trading activities

Last Answer : ; (d) Trading activities

Letter requesting a bank to issue a Letter of Credit.

Description : Letter requesting a bank to issue a Letter of Credit.

Last Answer : Letter requesting a bank to issue a Letter of Credit.

If an exporter is doubtful about an issuing bank's ability to pay, he will expect a domestic bank to join the transaction in a _____ letter of credit. A. revolving B. irrevocable C. revocable D. unconfirmed E. confirmed

Description : If an exporter is doubtful about an issuing bank's ability to pay, he will expect a domestic bank to join the transaction in a _____ letter of credit. A. revolving B. irrevocable C. revocable D. unconfirmed E. confirmed

Last Answer : E. confirmed

Which of the following is not true of a letter of credit? A. it is a document B. issued by a bank C. at the request of the exporter D. the bank agrees to honor a draft drawn on the importer E. payable in the designated currency

Description : Which of the following is not true of a letter of credit? A. it is a document B. issued by a bank C. at the request of the exporter D. the bank agrees to honor a draft drawn on the importer E. payable in the designated currency

Last Answer : C. at the request of the exporter

Letter of Credit is issued by a. IMF b. WTO c. Importer’s Bank d. Exporters Bank

Description : Letter of Credit is issued by a. IMF b. WTO c. Importer’s Bank d. Exporters Bank

Last Answer : c. Importer’s Bank

Do you know the difference between guaranty and guarantee?

Description : Do you know the difference between guaranty and guarantee?

Last Answer : I like Raise and Raze. One builds up, one tears down.

Warranty, Guarantee In The difference What ?

Last Answer : Guarantee Hall : No Something Specified Time The end To be Before Ruined Become If you can That Again New Given Is. And Warranty Hall : No Something Specified Time The end To be Before Ruined Become If you can That , again That's right By Given Is.

Difference between credit union and a bank?

Description : Difference between credit union and a bank?

Last Answer : A credit union is a not-for-profit organization. The profits are returned to the members in the form of dividends.

What is the difference between a credit union and a bank, and is my money safer at a credit union?

Description : What is the difference between a credit union and a bank, and is my money safer at a credit union?

Last Answer : As far as your money being safer in a credit union or a bank, it doesn’t make a difference which it is. What does make a difference is whether the financial institution you use is FDIC insured Usually the benefits of being part of a credit union are better than a regular bank.

How does the Second Amendment to the US Constitution guarantee an individual the right to armed self-defense?

Description : How does the Second Amendment to the US Constitution guarantee an individual the right to armed self-defense?

Last Answer : Your realization shows a clearer understanding than some members of the Supreme Court.

Is it unethical or immoral to hack slot machines to guarantee a win?

Description : Is it unethical or immoral to hack slot machines to guarantee a win?

Last Answer : I say it’s unethical or immoral because you enter a space where morons pump money into the machines based on the rules and you take the morons’ money by breaking the rules. I say it is a little less unethical or immoral because you are taking money from the pockets of degenerate casino operators.

How high would presidential nominees' unfavorability ratings have to be to mathematically guarantee that the majority of the country does not support either candidate?

Description : How high would presidential nominees' unfavorability ratings have to be to mathematically guarantee that the majority of the country does not support either candidate?

Last Answer : answer:I think that you're assuming a level of some kind of actual knowledge of the chosen candidate's positions and ideas in order to make some type of informed choice - and which has not ... . So how will these kinds of voters even be able to perceive that their candidates have negative ratings?

Do you oppose the Monsanto Guarantee Bill?

Description : Do you oppose the Monsanto Guarantee Bill?

Last Answer : It has been tested. There is no evidence that GM foods are going to hurt people. The benefits far outweigh any imagined negatives.

Was there an Amazon textbook trade-in date guarantee?

Description : Was there an Amazon textbook trade-in date guarantee?

Last Answer : It doesn’t sound like the sort of thing Amazon would offer (speaking as an Amazon Marketplace seller). Maybe you were doing some price-comparison shopping before settling on Amazon, and you saw that on another website?

Does Working Hard Guarantee Success?

Description : Does Working Hard Guarantee Success?

Last Answer : It most definitely helps, but in no way guarantees anything. It’s just improving the odds against the house.

How can attorneys on tv guarantee they can win your case and get you immediate compensation before your case settles?

Description : How can attorneys on tv guarantee they can win your case and get you immediate compensation before your case settles?

Last Answer : They most likely have an insurance company pick up the bill when they lose, as long as they win often enough an insurance company could afford it. Just a guess though.

What before bed foods almost guarantee bad dreams for you?

Description : What before bed foods almost guarantee bad dreams for you?

Last Answer : answer:Chocolate, before bedtime, is a no-no for me. It does not cause bed dreams, instead, the caffeine in it keeps me awake. I can drink a glass of chocolate milk, before bed, and ... bushy-tailed and ready for another eight hours of human madness. Bedtime chocolate is an upper for old John.

Does drinking guarantee a good time?

Description : Does drinking guarantee a good time?

Last Answer : It never did a thing for me. So I chose friends who didn’t drink much.

Have you tried this price guarantee loophole?

Description : Have you tried this price guarantee loophole?

Last Answer : I’ve never tried that, or even heard of it to be honest. That sort of tactic wouldn’t ever occur to me – it’s not in my nature to scam people.

Have you ever bought a miracle exercise gadget with a written guarantee to give you a killer body in just a few weeks ?

Description : Have you ever bought a miracle exercise gadget with a written guarantee to give you a killer body in just a few weeks ?

Last Answer : I did. Once. Next time, like the proverbial slap, it will be my fault.

Which school has the best medical transcription on-line course that will guarantee a job? How long does it take to finish the course?

Description : Which school has the best medical transcription on-line course that will guarantee a job? How long does it take to finish the course?

Last Answer : I don’t think any course will guarantee a job.

Describe the role played by National Rural Employment Guarantee Act in improving the employment situation in India. -SST 10th

Description : Describe the role played by National Rural Employment Guarantee Act in improving the employment situation in India. -SST 10th

Last Answer : The National Rural Employment Guarantee Act, which is now called Mahatma Gandhi National Rural Employment Guarantee Act or MNREGA', has improved employment situation in rural India in the ... MNREGA has checked mass rural migration to urban centres for jobs and other livelihood opportunities.

Describe any five provisions of ‘National Rural Employment Guarantee’ Act 2005. -SST 10th

Description : Describe any five provisions of ‘National Rural Employment Guarantee’ Act 2005. -SST 10th

Last Answer : Provisions NREGA 2005. (i) 100 days assured employment every year to each rural household. (ii) One-third of the proposed jobs to be reserved for women. (iii) If an applicant is not employed ... Funds for the implementation of the scheme. (v) The scheme is to be extended to 600 districts.

When was Mahatma Gandhi National Rural Employment Guarantee Act implemented ? -SST 10th

Description : When was Mahatma Gandhi National Rural Employment Guarantee Act implemented ? -SST 10th

Last Answer : In 2005 Mahatma Gandhi National Rural Employment Guarantee Act implemented.

Describe the provisions of “National Rural Employment Guarantee Act’’, 2005. -SST 10th

Description : Describe the provisions of “National Rural Employment Guarantee Act’’, 2005. -SST 10th

Last Answer : Provisions of NREGA 2005 are: (i) It provides 100 days assured employment every year to each rural household. (ii) One-third of the proposed jobs are reserved for women. (iii) If an applicant ... Funds for the implementation of the scheme. (v) The scheme is to be extended to 600 districts

Is it really possible to get 18%* rentals & 9 years lease guarantee on Believe It Or Not Campaign by M3M India, how you people are thinking about it?

Description : Is it really possible to get 18%* rentals & 9 years lease guarantee on Believe It Or Not Campaign by M3M India, how you people are thinking about it?

Last Answer : Yes it is 100% true now you get 18%* rentals and 9 years lease guarantee on M3M Commercial Projects, located at Main Golf Course Road Extn. M3M India Presenting, Believe It Or Not, India's biggest realty ... Road Gurgaon, please call to us at 1800-123-3333 to talk or log on to m3mindia dot com

whoAfrica's world famous MUDI spell caster for all problem solution only 72 hours 100% guarantee whatsApp him on this +2349052617210?

Description : whoAfrica's world famous MUDI spell caster for all problem solution only 72 hours 100% guarantee whatsApp him on this +2349052617210?

Last Answer : Black magic spells are effectively cast to change natures will upon you so it's focused to catalyze your life in towards what you do. So don't hesitate to summon Prof mudi for black magic spells ... bad effects. All you need is to summon him in to your life situation.Call / WhatsApp: +2349052617210

What is the guarantee of social rights ?

Description : What is the guarantee of social rights ?

Last Answer : Social rights are guaranteed through charity.

How to make love with beautiful girls ? 100% guarantee

Description : How to make love with beautiful girls ? 100% guarantee

Last Answer : Propose to her first. If she doesn't agree, try to convince her how much you love her. Learn about her favorite things and give her gifts. Above all, try to win her heart.

The easiest way to remember during reading or study exams ? Remember to read 100% guarantee

Description : The easiest way to remember during reading or study exams ? Remember to read 100% guarantee

Last Answer : Reading should be read with attention and readings should be read with points , reading will be remembered

100% guarantee that everything can be done with any mobile ?

Description : 100% guarantee that everything can be done with any mobile ?

Last Answer : Any mobile that can do everything is made till now. So there is no mobile that can do everything.

How to memorize a reading once read and remember 100% guarantee till the test ? I am in eighth grade

Description : How to memorize a reading once read and remember 100% guarantee till the test ? I am in eighth grade

Last Answer : I don't remember reading or I forget everything I read. This problem is present in almost all the students. Many people do not read the correct rules, but after a few days they forget it. Again many ... going to bed tomorrow. Then revise it after a week and it will be remembered for a long time.

What does the apartment mortgage guarantee?

Description : Do I just get it that I work or do I have to cancel real estate for example?

Last Answer : In order to get a mortgage, it is not enough just to work, but to have enough income to live normally and still repay the mortgage. The bank wants real estate, in your case the purchased apartment ... real estate). The bank is thus preventing it from losing money if you do not have the installments.

how do i guarantee payment

Description : how do i guarantee payment

Last Answer : Need Answer