Official communication only via msme@fincentrix.info · We never charge any advance fees
WhatsApp +91 72768 91801
🔄 Finance Product

Bank Guarantee (BG) Facility

Win larger contracts on the strength of a bank\'s word.

Trade finance
Loan Amount / Ticket size
Sized to the contract / obligation
Free eligibility assessment · Advisor calls within 4 business hours
Check Eligibility →
At a Glance

Bank Guarantee (BG) Facility — Key Facts

Loan Amount / Ticket size
Sized to the contract / obligation
Interest Rate / Cost
Commission-based (typically \~0.5--3% p.a.)
Collateral
Margin money and/or security as required 10-20%
Tenure
Matches the underlying contract / obligation
Turnaround Time
A few working days on documentation
Best For
Contractors & suppliers bidding for large tenders
Overview

What It Is & How It Works

Non-fund-based instrument in which a bank guarantees payment to a beneficiary if the applicant defaults --- enabling large-value transactions and building counterparty trust without upfront cash outlay.

How It Works

The Process, Visualised

How a bank guarantee worksApplicantYouIssuing BankGuarantees paymentBeneficiaryYour counterpartyTrust BuiltDeal proceeds

The bank guarantees payment to your counterparty if you default — enabling large transactions without tying up cash.

Eligibility Criteria

  • Business with a genuine contractual obligation (tender, supply, performance)
  • Acceptable financial standing and banking track record
  • Ability to provide the required margin money / security
  • Valid business registration and KYC
  • Clean credit history

Documents Required

  • Underlying contract / tender / purchase order
  • BG format required by the beneficiary
  • Business registration and KYC
  • Financial statements for the last 2 years
  • Margin money arrangement details
Process

From Application to Disbursal

1

Apply Online

Tell us your requirement in 2 minutes.

2

Eligibility Check

Free assessment within 48 hours.

3

File Preparation

We build and submit the complete bank-ready file.

4

Sanction & Disbursal

We follow through to money-in-account.

Who It's For

Common Applicants

Auto Components
OEM Suppliers
Engineering
Exporters & Importers
Manufacturing
Trading
Get Started

Apply for Bank Guarantee (BG) Facility

Fill this short form — our advisor calls within 4 business hours. Or use the full application →

✓ Free assessment · Documents stored securely · We call within 4 business hours

FAQ

Frequently Asked Questions

It assures a beneficiary --- say a client awarding a tender --- that the bank will pay if you fail to meet your obligation, which lets you bid for and win larger contracts.
You provide a margin (a portion of the BG value) rather than the full amount, so it enables large transactions without a full cash outlay.
Broadly, performance guarantees (you\'ll complete the work) and financial guarantees (you\'ll pay a sum), plus bid-bond and advance-payment guarantees.
The applicant (you), the beneficiary (who receives the guarantee), the issuing bank, and the advising bank that conveys it to the beneficiary.
Explore More

Other Finance Products

Apply for Bank Guarantee (BG) Facility

Free eligibility assessment · Advisor calls within 4 business hours · Documents stored securely

💬