Letters of Credit
Letter of Credit are used to mitigate the various risks inherent in international Trade. It is a commitment by a bank on behalf of the importer (foreign buyer) that payment will be made to the beneficiary (exporter) provided that the terms and conditions stated in the Letter of Credit have been met,
Loan term:
Up to 120 days. A longer tenure period is available for dealers in good standing on a case to case basis.
Requirements:
- Bill of lading at least 3 original copies.
- Invoice for the unit/Motor Vehicle.
- Import Declaration Form (IDF).
- Translated Japanese Log book (English).
- JEVIC (Inspection report from Kenya Bureau of Standards, KEBS).
- Copy of PIN Certificate.
- Copy of ID
Fees:
- Processing fees – 1%
- Appraisal fees – 2%
- Monitoring fees – 1%
- Release fees – 0.5%.
Interest Rate:
1.17% per month and Parking / Storage fees at Ksh. 250 per day.
Security:
- Physical Motor Vehicle whose duty is being financed.
- Original Log Book on release by KRA Registry.
- Comprehensive Insurance Cover with interest of Jamii Bank noted.
Financing beyond 30 Days:
- Ability to pay evident-verifiable source of financing, e.g. monthly salary, other incomes or proceeds of sale of unit from an identified buyer.
- Comprehensive Insurance cover with interest of JBBL noted.
- If client importer requires to take away vehicle before settlement of full facility, Log book of vehicle to be retained by JBBL, plus joint registration.
- Tracking device to be fitted on the vehicle by approved service providers.
