Loans

Bank Guarantee

Bank Guarantees are issued by Banks on behalf of the clients against execution of supply order, performance and security bid.

Eligibility Any individual / firm / contract agencies holding valid business licence.
Purpose
  • Execution of Supply Order.
  • Performance guarantee.
  • Security Deposit / Earnest Money.
  • Fund Mobilization.
Validity Maximum of 12 months. However, it may be extended on request at bank’s discretion.
Margin Margin Money is insisted based on the risk associated with BG upto the extent of 10%, which may be parked in TDR @ 2% p.a. (Minimum 46 days)
Security Govt. / Personal guarantee(s), mortgage / hypothecation of fixed / other properties.
Commission @ Nu.2% p.a. (minimum Nu.500/-) on actual number of days plus Margin Money upto 25% only may be parked in TDR @ interest rate of 2% p.a. with loan facility. Margin Money above 25% can be parked in Current Deposit Account without interest.
Handling
Charges 		Nu.100/- per guarantee.

For further information, please contact our nearest branch or the Credit Department at Head Office, Phuentsholing.