Credit Letter Template

By | August 17, 2010

Credit letter number:

Name of lender:



Dear Mr (name),

With reference to credit letter (number), we establish the credit in favor of (name of company or person), at the request and for the account of (name and address of owner) up to the total amount of Rs (mention amount in numbers), Rs (mention amount in words) only, which will be made available upon presentation of a draft, this letter and your signed statement which should read:

“I certify that the amount drawn under (name of issuing institution) Credit Letter (number) is payable upon demand.”

This credit letter is effective from (date) and shall expire on (date). The expiration date may be extended for a period of (mention period). On the every expiration date, we shall inform you and also (name of owner) that we will no longer extend the credit letter. Any unused credit will be paid to you upon presentation of the mentioned documents.

Thanking you,