The request for bank guarantees in support of contractual obligations has become common practice in the market and different forms of guarantees have evolved to cater for the diverse types of commercial and financial transactions. Letter of Guarantee is issued for business / trade / contract permissible under law and is deemed as non-fund based facility.
- Avail finance facility from Rs.0.5 Million to Rs.200
- Tenor is three to twelve months or Tenor of Contract (Extendable / Renewable upon Expiry).
- Commission as per Schedule of Charges (SoCs) (to be charged in advance)
- Cash margin 20% of the amount issued.
- Existing business entities having status of (Sole proprietor, or Partnership or Private Limited Company or Corporate entities) are eligible to avail this type of facility.
- Mortgage of urban residential/commercial/industrial properties acceptable to the bank (Maximum financing will be 70% of Forced Sale Value of the security & collateral).
- Hypothecation of Plant & Machinery/stocks (with 25% margin).
- Personal Guarantees of sponsor/partner/directors.Third party Guarantee(optional).
Cash Near Cash Security with 10 to 20% margin..
* Amount benchmarked for SME’s, corporate clients may go beyond the set limit