Digital lending in Nepal has reached a new height as now you can get LC and Bank Guarantee online from Global IME Bank. The bank has started the service of issuing bank guarantee and letter of credit (LC) digitally such that the customers do not need to visit the bank for these purposes.
The bank is developing and following the latest technology in all processes, prioritizing the integration of technology to business operations systems. As a result, it has the services like issuance of Letter of Credit (LC) and Bank Guarantee directly from the online portal of the bank’s website.
Let us be clear about LC and Bank Guarantee first
Letter of Credit (LC) and Bank Guarantee (BG) are payment guarantees generally issued by the issuing bank on behalf of the applicant so as to cover the delay in payment from another party. They both are the lending instruments for issued by the banks to their clients- especially businesses.
However, there is one significant difference between letter of credit and bank guarantee. A letter of credit is a financial promise guaranteeing that a buyer’s payment to the seller will be received on time. If the buyer is unable to make the payment on purchase, the bank will be required to cover the full or remaining amount of the purchase.
On the other hand, the bank guarantee is a promise from a lending institution that ensures the bank will make payment on behalf of the debtor in case they can not cover a debt. LC is primarily issued for international trade and business contracts like real estate, infrastructure contracts, construction, etc. LC is exercised successfully if the amount is paid by the buyer at the contracted period with all the procedures mentioned before.
On the contrary, bank guarantee comes into play when the paying party fails to pay or becomes default in paying to the receiving party as per the contract.
How is Global IME Bank allowing online LC and Bank Guarantee?
Global IME Bank aims to revolutionize the trade finance service by introducing online letter of credit and bank guarantee service. This service is being provided with these key features:
- Submission of LC and BG application can be made online from the official website of Global IME Bank.
- Facility to select your own branch
- Track your request online
- Online notification service
- Separate portal for corporate and retail customers
How to apply for LC and Bank Guarantee online at Global IME Bank?
Global IME Bank has started this service officially from Bhadra, 2079. You can follow a few steps to get LC and bank guarantee from the comfort of your own device, without visiting the bank.
Go to the official site of Global IME Bank www.globalimebank.com. However, the online portal is not working as of now so you will have to call at +977-1-5970600. If you have any query related to this service, you can contact to the Central Trade Operations Department or Digital Banking Department of the bank.
Global IME Bank is serving the banking services from its 289 branches, 272 ATMs, 275 branchless banking services, 52 extension counters, accounting for more than 890 service centers.
Similarly, it has also extended its banking services through the extensive remittance services from countries like USA, UK, Canada, Australia, Malaysia, South Korea, Japan, Saudi Arabia, Qatar, UAE, baharain, Kuwait, India, Jordan, Hongkong, etc.
Also, it is the recipient of the prestigious title “Nepal’s Best Bank” from Euromoney Awards for Excellence for the year 2022. And with this new service of allowing online LC and bank guarantee, Global IME Bank is all set to contribute for the digital economy by extending its digital banking services with digital lending facility.