Bank Guarantee for Corporates
Bank guarantee (BG) is used to strengthen and/or secure an obligation under a commercial contract. Customers can apply to the Bank to issue BG in favour of a Beneficiary. After examining and approving the application, the bank executes an agreement with the customer with the required terms and conditions. The bank will then issue the guarantee.
- Financial Guarantees, Performance Guarantees and Deffered Payment Guarantees are provided to eligible customers
- Financial Guarantee is in lieu of monetary obligations
- Performance guarantee is in respect of performance of a contract
- Deferred payment guarantee is provided when the guarantee is backed by adequate tangible security or by counter guarantees of Central or State Governments, public sector financial institutions or other companies
- All Corporates having turnover of Rs.500 Crores and above.
- Guarantees issued on behalf of Joint stock companies should be supported by appropriate resolution of the Board of the directors of the company.
- Hypothecation / extension of Hypothecation charge over the underlying current assets.
- Second charge on fixed assets and or hypothecation of machinery / assets.
- Additional tangible security such as immovable properties / bank deposits etc.
- Counter Guarantee
- Personal guarantee of proprietors / partners / promoters
- Corporate guarantee