ISLAMIC LETTER OF CREDIT ILC

HALAL LETTER OF CREDIT DIFFERENCE TO CONVENTIONAL LETTER OF CREDIT ISLAMIC LC AND UCP 600

An Islamic letter of credit is defined by a trade finance instrument which aims to mitigate the payments risks for a seller and the performance risks for a buyer by applying the principles of Islamic Finance.

An Islamic letter of credit shall follow the same rules as the one regulated by UCP 600 as the expansion of the Islamic finance system that produces the Islamic LC does not affect this trade finance at all by creating a new one, however with the difference of excluding exclusion of liability, and discrepancy fees.

The Islamic of letter credit is specific when it comes use the several types of Islamic LC which are using the equivalent options like the conventional system but by applying strictly the Sharia rules with the absence of Riba, these solutions are: Murabahah ILC, Musharaka ILC, Wakalah ILC.

A halal letter of credit in all don’t create a problem when it comes to apply Sharia banking with this product and the typical LC sight letter of credit LC does not create any problems from the Islamic point of view, the issues are more related to the peripheric options like refinancing or deferred payment and to the imported or exported products themselves.

HALAL MORTGAGE   ISLAMIC CAR LOAN   ISLAMIC MICROFINANCE    WITHOUT INTEREST   BUSINESS LOAN   FOR WOMEN    TAKAFUL MORTGAGE   LOAN WITH POOR CREDIT   ISLAMIC DEBT CONSOLIDATION    DISABILITY LOAN   STUDENT LOAN   ISLAMIC LEASING    LETTER OF CREDIT   PERSONAL LOAN   FOR STARTUP    PRIVATE LOAN   CROWDFUNDING   CALCULATOR    FOR WEDDING   FOR EXPATRIATE   ISLAMIC INSURANCE    INDIA TAKAFUL   ISLAMIC HEALTH INSURANCE   USA TAKAFUL    CANADA TAKAFUL   UK TAKAFUL   FARMER LOAN   CORONOVIRUS LOAN   TAXI LOAN   RAMADAN LOAN   ALBANIA   ALGERIA   AUSTRALIA    BAHRAIN   BANGLADESH   BOSNIA-HERZEGOVINA    BRUNEI   CANADA   CHINA    DENMARK   DJIBOUTI   EGYPT    ETHIOPA   FRANCE   INDONESIA    IRAN   IRAQ   IVORY COAST    JORDAN   KAZAKHSTAN   KENYA    KUWAIT   KYRGYZSTAN   LEBANON    LIBYA   LUXEMBOURG   MALAYSIA    MALI   MAURITANIA   MOROCCO    NETHERLANDS   NIGERIA   NORWAY    OMAN   PAKISTAN   PALESTINE    PHILIPPINES   QATAR   RUSSIA    SAUDI-ARABIA   SENEGAL   SINGAPORE    SRI-LANKA   SUDAN   SWITZERLAND    SYRIA   TAJIKISTAN   TANZANIA    THAILAND   TUNISIA   TURKEY    U.A.E   UNITED-KINGDOM   U.S.A    UZBEKISTAN   YEMEN   AZERBAIJAN    INDIA   BELGIUM   GERMANY    IRELAND   ITALY   NEW-ZEALAND    SPAIN   SWEDEN    BULGARIA   KOSOVO   SOUTH-AFRICA    LONDON