IMPACT OF LETTER OF CREDIT ON CUSTOMER SATISFACTION

To overcome business of overseas opponents it has become mandate for every individual engaged business of trade on the global frontiers to offer lucrative mode of payment to consumers. Receiving timely and total payment is a definite objective behind trade. Choosing the relevant mode of payment by mitigating risk and delivering the goods in healthy condition is win –win situation for both the participants engaged in trade. Letter of credit is amongst the one which is most acceptable and protected tool to carry out the overseas and domestic trade. Letter of credit is promissory note delivered by the bank to the individual receiving the goods on behalf of the sender. In other words letter of credit reflects the trustworthiness of the individual making the payment hereinafter the receipt of the goods. It can also be stated that letter of credit is contrivance to win trust of the supplier. Moreover centering on the banks perspective it gets the charges from the individual for whom it stands as an assurity. The study reveals the perception of consumers towards the letter of credit. Applying the suitable statistical tools it has been observed that consumers are highly satisfied with the services like letter of credit by the banks. The consumers also accepts it as one of the secured tool to carry out the trade.