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Bank guarantee

Bank guarantee

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. 

  • Features & Benefits
  • Rates & Charges

Types of Bank Guarantees

  •  Financial guarantee
  •  Performance guarantee

 

Performance Guarantee

Performance Guarantee is one by which: 

  •  Due performance of a contract undertaken by a customer in favour of Govt. bodies and others for supply of materials, construction of building etc.
  •  Due performance of an equipment/project after completion for a specific period.

 

Financial Guarantees

Financial Guarantees provided by us include: 
  •  BG issued in lieu of earnest money/security deposit specified to be deposited while contractors bid for a tender in favour of Government Departments and others.
  •  BG issued in favour of Customs Department in respect of payment of customs duty by the customer.
  •  Guarantees for obtaining advance payment
  •  Guarantees issued in favour of IATA/Airlines for providing air tickets to travel agents.
  •  Guarantees issued in favour of Electricity Boards and Power Utilities, Water Boards etc guaranteeing payment of electricity/water bills
  •  Guarantees issued for releasing retention money.
  •  Guarantees issued in favour of nominated Banks for selling gold to Jewelers on credit.
  •  Guarantees issued in favour of Customs/Excise/Sales Tax for deferring payment of duties.
  •  Guarantees/ Comfort letters issued in favour of lenders of buyer's credit/ suppliers credit.
  •  Guarantees issued in favour of Banks/ FIs guaranteeing repayment of loans.
  •  Guarantees issued to Stock Exchanges on behalf of stockbrokers for margin money.
  •  Guarantees issued under EPCG Scheme for customs duty exemptions.

Please refer Rates & Charges Page