Bank Guarantee
We provide Bank guarantee (BG) to strengthen and/or secure an obligation under a commercial contract.
Bank Guarantee is a commitment of the Bank in writing to the beneficiary to make payment of the amount specified in the BG documents on or before the due date.
Types of Bank Guarantees offered depending upon the purpose, securities and commitments.
(a). Financial Guarantee:- Financial Guarantee is a guarantee which is to fulfill the financial commitments made by the client within a stipulated period.
(b). Performance Guarantee:- Performance Guarantee is a guarantee to perform the specific act such as execution of work, supply of machinery etc. within the prescribed date or as per the specifications etc.
(c). Secured Guarantee:- Secured Guarantee is a guarantee issued by the Bank against the security of assets including cash margin, the market value of which will not at any time be less than the amount of contingent liability on the guarantee.
(d). Unsecured Guarantee:- Guarantees issued by the us which are not fully secured equivalent to Market Value of the contingent liability. If the guarantee is partly secured, the Bank will fix suitable proportion of securities to be obtained specifying the cash margin and other collateral securities for different types of customers taking into account RBI guidelines in force.
(e). Deferred Payment Guarantee:- Deferred Payment Guarantee is a guarantee in respect of borrowers for acquisition of capital asset. In case of deferred payment guarantee, the proposal will be examined similar to appraising of Term Loan proposals for acquisition of capital assets.
(f). Bid Bond Guarantee:- In case of Bid Bond Guarantee, the Guarantee is issued for approving or sanctioning of work order as per the terms and conditions of tender documents.
(g). Mobilization of Advance Guarantee:- This guarantee is issued to release the funds against the work order issued by the beneficiary. This will help the clients to take mobilization advance against BG.