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Bank Guarantee

Is the Trade online facility enabled for customers availing of Corporate Internet Banking service?

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Trade Online access is not provided by default. If you can see Trade tab at left side of Corporate Internet Banking (CIB) screen, then Trade Online navigation is available. For applying Bank Guarantee through Trade Online, go to Trade > Trade Online > Import > BG Issuance Request.

Can I apply for Bank Guarantee online?

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Yes, Bank Guarantee can be applied through our online application Trade online.

How much time does it take to issue BG?

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We issue BG within 3 hours* after submission of your compliant documents during business hours.

What are the types of Bank Guarantees?

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  • Performance Guarantee
  • Bid Bond/Earnest Money Deposit (EMD) Guarantee
  • Financial Guarantee
  • Advance Payment Guarantee
  • Foreign Bank Guarantee
  • Deferred Payment Guarantee

What is the difference between Bank Guarantee and Letter of Credit?

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Letters of Credit ensure that a transaction goes ahead, whereas a Bank Guarantee reduces any loss incurred if the transaction does not go to plan. Merchants involved in the exports and imports of goods will choose Letters of Credit to ensure delivery and payments. In contrast, Contractors bidding for infrastructure projects will prove their financial credibility through Bank Guarantees. Moreover, unlike Letter of Credit, Bank Guarantees protect both parties involved.

What is Bank Guarantee?

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A Bank Guarantee (BG) is a promise from a bank that the liabilities of a debtor will be met in the event that he/she fails to fulfil his/her contractual obligations. BGs are an important banking arrangement and play a vital role in promoting international and domestic trade.