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Strengthen Business Credibility Without Blocking Working Capital

Non-fund-based facilities help businesses execute large orders, participate in tenders, and manage trade transactions without immediate cash outflow. At Arthapradan, we help structure Letter of Credit and Bank Guarantee facilities aligned with your business scale, turnover, and transaction cycle.

Key Benefits

No immediate cash outflow
Improves supplier & client trust
Supports tender participation
Enables larger order execution
Preserves working capital
Charges Structure
Eligibility Criteria
Documents Required

Non-fund facilities do not carry traditional interest like term loans. Instead, banks charge:

The final rate depends on:

  • Bank Commission: A small annual percentage (0.5% – 2%) for the "guarantee" provided.
  • Margin Money: A security deposit (usually as an interest-earning FD) ranging from 10% to 25%.

Businesses may qualify if:

  • Registered entity in India
  • Minimum operational track record (usually 1-2 years)
  • Stable turnover and financials
  • Satisfactory promoter credit profile
  • Proper statutory compliance

Applicable for proprietorships, partnerships, LLPs, and private limited companies.

  • Aadhar & PAN Card
  • Business registration documents
  • GST certificate
  • Financial Statements and ITRs for the last 2 years
  • Bank statements (6–12 months)
  • Order copy / Tender document / Trade agreement
  • Collateral documents (if applicable)
Home Loan

Loan Application Process

01

Connect with us on WhatsApp and share your requirements

02

Submit financials and transaction details

03

Eligibility assessment and lender mapping

04

Sanction of the LC/BG limit

05

Issuance of the instrument as per the transaction

Need Trade Support Without Blocking Your Funds?

Strengthen your business credibility with Letters of Credit and Bank Guarantees while preserving working capital.
Connect with us on WhatsApp today for structured non-fund based solutions.

Apply Now

Frequently Asked Questions

No. The bank provides a guarantee or payment assurance. Funds are used only if an obligation is triggered.

Margin or collateral may be required depending on the limit size and business profile.

Validity depends on transaction nature — short-term trade LCs may be for months, while performance guarantees may extend longer.

Generally, lenders prefer businesses with operational history and stable financial records.

Timelines depend on documentation and banking history, but can be structured efficiently with proper records.