A bank guarantee is when a bank offers surety on behalf of the applicant for different business obligations within certain regulations. The bank takes the payment risk on behalf of its applicant. Bank guarantee is offered on a contractual obligation for the applicant's business and personal transactions. It differs with a letter of credit as in a Bank Guarantee, the Bank becomes a co-signer on the purchase contract, also referred to as the ‘Guarantor’. In the case of BG, the bank assumes to make the payment only when the customer defaults to make a payment, whereas, in Line of Credit, it becomes a primary liability for a bank to pay and later collects the amount from the applicant.
Salaried individuals who are eligible for a car loan
Any person who has a good financial record is eligible to apply.
Request Letter and Counter Indemnity cum Memorandum relating to charge over fixed deposit duly stamped (Franking as per respective State Stamp Act).
Bank Guarantee text.
Board Resolution for Private Limited Company/Limited Company.