Bank Guarantee acts as an undertaking assuring the beneficiary that the bank would pay the specified amount, in case of its applicant’s default in delivering the financial or performance obligation as mentioned in the guarantee. It is to be noted that the obligation to pay is not of the applicant, but of the bank, since bank acts as the guarantor.
Bank Guarantee is a surety that is provided by a bank or a financial institution that they will pay off the debts and liabilities incurred by a business entity in case the entity is unable to do so. Bank Guarantees are an important banking arrangement and play a vital role in promoting international and domestic trade.
- Performance Guarantee
- Advance Payment Guarantee
- Financial Guarantee
- Foreign Bank Guarantee
- Deferred Payment Guarantee
- Bid Bond Guarantee
Under a performance guarantee, compensation of money will be made by the bank when there is any delay in delivering the performance or operation.
Under this kind of guarantee, an advance payment will be made to the seller. It also guarantees that if the seller fails to deliver the service or product accurately or promptly, the buyer will receive a refund of the payment.
Financial guarantee is an undertaking from a bank to take responsibility for another company’s financial obligation if that company does not meet its responsibility.
A foreign bank guarantee is provided by a bank on behalf of a borrower/Creditor. This will be issued for the benefit of a foreign beneficiary.
It refers to a BG offered to the exporter for a deferred period or for a certain time period. When a buyer purchases capital goods or machinery, the seller will give credit to the buyer if the buyer’s bank gives a guarantee that it will pay the unsettled dues of the buyer to the seller.
Used for a supply bidding procedure, the contractor of the project will guarantee that the best bidder or the highest bidder will have the capability and authority to implement a project as per his or her preferences.
Yes, Customers can avail ICICI Trade Online Platform for issuing BG Online
Yes, Customer visits the ICICI bank branch for availing Bank Guarantee against 100 percent fixed deposit from their saving account.
Who requires Bank Guarantee
Individual Contractor working with State Govt., Central Govt., Semi Govt. bodies
Medical colleges for Student Admission
Income Tax authority
Judiciary for Legal Purposes and others
Benefit ICICI BG from Saving Account
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