Bank Guarantees

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Bank Guarantees
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About Bank Guarantee

Bank Guarantees are essentially financial instruments under which a financial institution promises to cover a beneficiary's losses, if the applicant fails to meet their contractual obligations.

Types of Bank Guarantees

Performance Guarantees:

  • We provide performance guarantees that assure your counterparty of your commitment to fulfil contractual obligations accurately and in a timely manner. These guarantees are invaluable when engaging in projects, tenders, or contracts that require the demonstration of financial capability and reliability.

Payment Guarantees:

  • Our payment guarantees provide the assurance and security necessary for seamless trade transactions. Whether it is an advance payment guarantee or payment against documents, our guarantees facilitate the smooth flow of funds between buyers and sellers, ensuring that you can conduct business with confidence.

Financial Guarantees:

  • Our financial guarantees are designed to meet a wide range of financial obligations. Whether it involves lease agreements, customs duties, or other financial commitments, we offer tailored solutions to support your business objectives and facilitate your financial transaction

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Our Benefits and Charges

Features and Benefits

  • Reputation and Credibility: HDFC Bank is one of India’s largest and most reputed private sector bank adding significant credibility to your business in the eyes of vendors, government agencies, and international partners..
  • Efficient Processing and Deep Insights: Our efficient documentation and processes help in quicker BG issuance. We offer deep insights on govt tendering opportunities and provide pre-vetting text services.
  • Strong Digital Infrastructure: Online issuance of BGs in 3 hours* with eBG facility. Faster BG confirmation through SFMS and hassle-free BG cancellation process. Notifications and real-time status updates help manage guarantees better.
  • Competitive Pricing and Flexible Terms: Negotiable margins and fees depending on your relationship and credit profile. Customizable guarantee terms to suit the project or transaction duration.
  • Regulatory Compliance: Our BGs are structured to meet all RBI and FEMA regulations, ensuring smooth functioning in both domestic and cross-border transactions.
  • Integration with Other Banking Services: HDFC Bank offers bundled solutions (BGs, Letters of Credit, FDI, ODI, ECB, working capital loans, etc.), providing a comprehensive trade ecosystem.
Performance Guarantees

Most Important Terms and Conditions

*The (Most Important Terms and Conditions) for each of our banking offerings features all the specific terms and conditions that govern their use. You must go through it thoroughly to fully understand the terms and conditions applicable to any banking product you choose.    

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Application Forms

Click here to download BG application form - Retail

Click here to download BG confirmation letter- Issuance

Click here to download BG Request Letter - BBG, BG Request Letter - EEG & BG Request Letter - ECG

Click here to download BG Request Letter - Infra

Click here to download SEC 28 CUSTOMER DEC FOR BG

Fees & Charges

More About Bank Guarantees

Letter of Credit FCY issuance (FCY/LCY), Charges, Documentation charge - ₹1500 (if applicable)

Commission, Fedai charges * / IBA ** Min ₹2,000 ,

SWIFT/Courier, FCY - ₹ 2,000 SFMS / LCY - ₹1,000

Guarantee issuance (Financial, Performance), Charges, Documentation charge - ₹1,500 (If applicable)

Commission, 1.8% Per Annum, min ₹2,000

SWIFT/Courier, ₹1,000

 

    *The Most Important Terms and Conditions for each of our banking offerings features all the specific terms and conditions that govern their use. You must go through it thoroughly to fully understand the terms and conditions applicable to any banking product you choose. 

Fees & Charges

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Frequently Asked Questions

A Bank Guarantee is a guarantee issued by a bank on behalf of a customer, assuring a beneficiary that specified financial obligations will be fulfilled if the customer defaults.  

A Bank Guarantee is a promise from a bank or financial institution that ensures the obligations of a debtor will be met. In other words, if the debtor fails to settle a debt, the bank will cover it. It’s a safety net for the beneficiary, assuring they won’t suffer loss if the debtor cannot fulfil their obligations. It is commonly used in business transactions as a form of financial security. 

To obtain a Business Bank Guarantee from HDFC Bank, submit a request at an HDFC Bank branch or online through the Wooqer link or TradeOnNet platform. 

Yes, a Bank Guarantee can be cancelled. It expires if not invoked within the validity period, no amount is payable under it, or the original guarantee is surrendered to the bank.

Yes, Bank Guarantees expire. It expires if not invoked within the validity period, no amount is payable under it, or the original guarantee is surrendered to the bank.