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Financial Accounting
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LTR (Loan Against Trust Receipt)
Loan against Trust Receipt (LTR) is a funded facility provided to importer to retire L/C related shipping documents. Advance against an LTR obtained from the customer is allowed when the documents covering an import shipment are given without payment. LTR is a loan against a Trust Receipt provided to the client when the documents covering an import shipment are given without payment. Under this system, the client will hold the goods of their sale proceeds in trust for the bank, until the loan allowed against the Trust Receipt is fully paid
