Bank Guarantee

Bank Guarantee

Enabling assurance of your payments

A Bank guarantee is a promise from a bank that the liabilities of a debtor will be met in the event that you fail to fulfill your contractual obligations.

 

ICICI Bank's Bank Guarantees

  • Honour payment to your beneficiaries upon receipt of a claim
  • Provides Bank Guarantees in foreign currency for approved purposes as defined under FEMA.

How does a Bank Guarantee work?


  • Step 1 - Applicant and beneficiary enter into a contract and agree that a Bank Guarantee is required
  • Step 2 - Applicant approaches ICICI Bank(issuing bank) to issue a Bank Guarantee in favour of the beneficiary
  • Step 3 - ICICI Bank issues the Bank Guarantee, and
    • Sends a financial instruction to an advising bank, which is usually located in beneficiary’s country, or
    • Couriers the hardcopy Banker’s Guarantee to the beneficiary, or
    • Notifies the applicant of self-collection at any of branches
  • Step 4 - Once the advising bank receives the Banker’s Guarantee, it will advise it to the beneficiary

Types of Bank Guarantee


  • Performance Guarantee
  • Bid Bond Guarantee
  • Financial Guarantee
  • Advance Payment Guarantee
  • Foreign Bank Guarantee
  • Deferred Payment Guarantee

The ICICI Bank edge


  • Extensive Validity - Valid for a maximum of 10 years & Maximum tenor of guarantee is 18 months
  • Competitively priced
  • Worldwide Acceptance - Globally accepted by all beneficiaries
  • Ease - Bank Guarantee in INR as well as foreign currency