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| Home > Corporate > Non-Fund Based assistance > Bank Guarantee/Performance Guarantee |
Bank Guarantee - IDBI Bank Bank Guarantee (BG) |
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Bank Guarantee is an instrument issued by the Bank in which the Bank agrees to stand guarantee against the non-performance of some action/performance of a party. The quantum of guarantee is called the 'guarantee amount'. The guarantee is issued upon receipt of a request from 'applicant' for some purpose/transaction in favour of a 'Beneficiary'. The 'issuing bank' will pay the guarantee amount to the 'beneficiary' of the guarantee upon receipt of the 'claim' from the beneficiary. This results in 'invocation' of the Guarantee. IDBI Bank issues the entire range of Bank Guarantees, namely,
 Bid Bond Guarantee
Advance payment Guarantee
Guaranty for warranty obligation
Payment Guarantee/Loan Guarantee
Performance Guarantee
Deferred payment Guarantee
Shipping Guarantee
Trade Credit Guarantee
Standby LC
Bank issues Guarantee favoring beneficiaries abroad either directly or through our correspondent banks across the continents. Similarly, IDBI Bank also issues guarantees favoring resident beneficiaries on behalf of our overseas branches / correspondents. |
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