What is bank guarantee? What is bank guarantee? A guarantee is a promise made by the person/organization (or guarantor) to the Banker that he will pay the present or future debt in case of default by the principal debtor. So the guarantor is undertaking to repay the debt in case it is not the principal […]
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Different Types of Guarantee in Banking Different Types of Guarantee: a) Financial Guarantee (Bid Bond): Under a financial Guarantee the Bank undertakes to discharge the financial liability of the third party in case of default. These are usually given on behalf of Contractors in lieu of earnest money. Financial Guarantees in relation to tenders are […]
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