How long can bank finance be extended beyond the initial 180 days?
William Jenkins
Updated on February 05, 2026
(ii) In case of usance bills, credit can be granted for a maximum duration of 180 days from date of shipment inclusive of Normal Transit Period (NTP) and grace period, if any.
What is the normal usance period of LC?
Banks may extend post-shipment credit to such exporters for a longer period ab- initio. Accordingly, the interest rate up to 180 days from the date of advance will be the rate applicable for usance bills for period up to 180 days….Master Circulars.
| CONTENTS | |
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| Sr.No. | Particulars |
| D | Scope of Application |
| Structure | |
| Introduction |
What is usance letter credit?
A usance letter of credit is a specific type of letter of credit that allows a predetermined credit period to the buyer i.e. the importer. In common business usage, a usance letter of credit is also known as a differed letter of credit.
What is crystallization of overdue export bills?
However, if export bills are not realized even after 30 days of its maturity, bank withdraws the facility of low interest rate by delinking the bills by converting commercial rate of interest. This is called crystallization of export bills. Crystallization of bills is also called delinking of export bills.
What is usance LC 90 days?
A Usance payment LC provides the importer a deferred payment option. Payment within 90 days after the Bill Of Lading (B/L): This term indicates that after BL issued, the buyer has a time of 90 days from the date of B/L to make the payment for the goods.
How do I issue an LC?
Letter of Credit – Process
- Step 1 – Issuance of LC.
- Step 2 – Shipping of goods.
- Step 3 – Providing Documents to the confirming bank.
- Step 4 – Settlement of payment from importer and possession of goods.
When do the new stamp duty rates come into effect?
Use the SDLT calculator to work out how much tax you’ll pay. The 3% higher rate for purchases of additional dwellings applies on top of temporary reduced rates above for the period 8 July 2020 to 30 June 2021 and also for the period 1 July 2021 to 30 September. The following rates apply:
How long is stamp duty payable in India?
The rate of stamp duty is given in Entry no. 13 of Schedule 1 to the Indian Stamp Act, 1899. It is too detailed to give in the limited space available here. In case of bills of exchange drawn on the importer, stamp duty is payable for usance period beyond 90 days.
How are stamp duty and registration charges included in home loan?
These are: Are Stamp Duty and Registration Charges Included in Home Loan? As a rule, stamp duty and registration charges are not included in the home loan amount sanctioned by lenders. This is an out-of-pocket expense to be borne by the buyer. 1% of the property’s total market or agreement value, or Rs.30,000, whichever is lower.
When is stamp duty payable on bills of exchange?
In case of bills of exchange drawn on the importer, stamp duty is payable for usance period beyond 90 days. It is not payable on bills of exchange with usance period of up to 90 days.
