This import loan is a short-term loan and is an agreement between the customer and the bank. With this agreement, the bank has the ownership of the imported goods and the customer's role is to use the goods for production or distribution only. On the maturity date, the customer shall fully repay the loan to the bank.
The import loan can be separated into 2 main categories as follows:
- T/R Sight (L/C issued with condition to pay at sight or pay upon receiving the documents)
- T/R Term (L/C issued with condition to pay within certain payment date that both buyer-seller agreed on the credit term)