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Bank Guarantee

Performance and financial guarantees issued on your behalf to government bodies and public-sector clients.

Overview

What Is Bank Guarantee?

A Bank Guarantee is a guarantee issued by a bank on behalf of a customer, typically in favour of third parties such as government departments and public-sector organisations.

There are two broad types — Performance Guarantee and Financial Guarantee. The applicable type, the customer's track record and financial position together determine the guarantee limit, security and margin required.

Key Features & Benefits

  • Performance and Financial Guarantee options
  • Issued in favour of government / PSU / private clients
  • Limit structured on track record and financial strength
  • Supports tender participation and contract execution
  • Competitive margin requirements

Eligibility Criteria

  • Registered business with tender/contract requirement
  • Satisfactory banking and credit track record
  • Latest financial statements and GST returns
  • Margin money / security as stipulated by the bank

End Use Of Funds

  • Tender / bid security submission
  • Contract performance assurance
  • Advance payment guarantee to clients
  • Statutory and regulatory compliance guarantees
Rates, tenures and eligibility shown on this page are indicative market ranges and are subject to the sanctioning bank / NBFC's credit policy. They are not an offer or a commitment.
Quick Facts
Guarantee TypesPerformance / Financial
BeneficiaryGovt / PSU / Corporate
MarginCase-to-case basis
Processing Time7 – 15 Business Days
TenureAs per contract / tender
RenewalAs required
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Figures shown are indicative and vary by lender, rating and case profile. Your sanctioned terms are confirmed only in the lender's sanction letter.

How It Works

From Enquiry To Disbursement In 4 Steps

01

Share Your Requirement

Tell us your funding need — amount, purpose and business profile — via form, call or WhatsApp.

02

Document Assessment

Our advisory team reviews your documents and matches you with the right lender / product.

03

Sanction & Approval

We coordinate with banks and NBFCs for evaluation, valuation and credit sanction.

04

Disbursement

Funds are disbursed directly to your business bank account after final agreement.

FAQs

Bank Guarantee — Frequently Asked Questions

A Performance Guarantee assures completion of contractual obligations, while a Financial Guarantee assures payment of a financial obligation if the applicant defaults.

Work out the numbers first

Free tools, running entirely in your browser — no rate assumed on your behalf, and every formula shown.

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