The product is designed for customers that are into import business. Under import finance a letter of credit is issued by Jaiz Bank in favor of a beneficiary (exporter) on behalf of the applicant (importer). The Bank commits and accepts to pay against trade documents drawn in compliance with the letter of credit terms.
Customers can utilize the facility to purchase raw materials, finished goods, equipment, machineries and other consumables from the international markets.
These goods are first bought by Bank for its account on orders of the customers by paying cash or through LC as the case may be and then sold to the customers with profit mark up on deferred payment basis. Payments on deferred basis can be made to the bank in installments or in one lump sum amount.