LATR
LATR stands for Loan against Trust Receipt. This facility is provided as post import finance for retirement of shipping documents so that the importer can release the goods imported through L/C. LATR is allowed against import of trading items/ industrial raw materials The facility is allowed on trust with the arrangement that sale proceeds (of the goods) will be deposited for adjustment of the loan account within the stipulated time.
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Features
- This is a demand loan
- This is a post-import finance usually allowed to retire shipping documents of L/C.
- Importer controls/possesses the imported goods.
- Usually has the tenure of 30, 60, 90, 120, or 180 days based on business nature of the customer i.e. the nature/ marketability/ perishability of the goods or as per Bangladesh Bank guidelines/directives.
- Drawing is allowed once only, no further drawing is allowed. Borrower has option to adjust the loan within the period of LTR shortly.
- Primary security: Hypothecation of imported goods and merchandise.
Rate