Margin & Security

Margin

• Margin will be collected on guarantees keeping in view the overall risks involved in extending the guarantee limits.
• Margin depends on the amount of the guarantee / quantum of guarantee limits
• It also depends on the risk involved
• Margin should be either in cash or by taking term deposit of our Bank or other securities acceptable to the Bank

Security

• 100% margin in cash / term deposits of the bank
• In the case of parties who are existing customers with satisfactory past dealings , sanctioning authority may take a decision on a case to case basis, keeping in view the risk involved, dealings of the party, the previous instances of invocation and availability of other collateral

Types Of Guarantees

Financial Guarantees

All guarantees issued guaranteeing repayment of a loan or a debt and considered as financial Guarantees.

Performance Guarantees

These are guarantees issued in respect of performance of contract or obligation. Although these guarantees are for performance, in such cases, in the event of non-performance of the obligations as per the terms of the contract, the Bank

Deferred payment Guarantees

Issuance of deferred guarantees favouring suppliers / manufacturers shall arise where goods / machineries are supplied on credit and the payment is to be made by deferred instalment

Advance payment Guarantees

Such type of guarantees are issued where the parties (principal borrowers) seek ‘advance payment’ from their principal to meet part of the expenses for execution of contracts or to meet a part of the working capital requirements

Commission

• Please visit service charge & Fees page for details