Bank Guarantee
Purpose
- Guarantee from a lending institution ensuring the liabilities of a debtor will be met.
- Helping business growth and promoting entrepreneurial activity.
Features
- Contingent Liability
- One Time: for a particular Contract; documents valid for only one guarantee
- Running: Guarantee will be sanctioned like Cash Credit for the full tenure during which separate Letters of Guarantee will be issued within the sanctioned limit to different departments/institutions. Omnibus Counter Guarantee (Ann BG2A) will be obtained in this case
- 18 months term available
- Low commission applicable
Guarantee Types
- 1.Financial Guarantee
- Against Mobilization Advance given to a contractor for starting work on a project
- Against advance given by a buyer for supply of raw materials 2.Performance Guarantee:
- In lieu of Security/Earnest Money for bidding activity
- To honour a performance linked contract
- For warranty period after completion of the project
- For partial payment linked to stage wise completion
- Related to civil liability cases pending in courts and also revenue dues
Charges
- Click HERE> for more details about Deposit interest rates& Service charges.
- For more quries please contact to your nearest branch.
