Loan Against Bank Guarantee in India
Loan Against Bank Guarantee in India
Bank guarantee: A Bank guarantee is a type of guarantee under section 126 Indian if faced a situation where a client asks to supply a financial guarantee?

Loan Against Bank Guarantee in India

Loan Against Bank Guarantee in India

The bank extends various funded as well as non-funded facilities against unconditional guarantees A loan against bank guarantee stands by a promise provided by a bank or any other financial institution that if a certain borrower fails to pay a loan, then the bank or the financial institution will take care of the losses. The bank will assure the original creditor through this bank guarantee that if the borrower does not meet his or her liabilities, then the bank will take care of them.

Bank guarantee is a non-fund-based instrument which is not convertible into the fund based which can be helpful for companies to purchase raw material when the actual working capital limit is fully exhausted.

Financeseva helps companies to avail funds and even raw material against unutilized Bank Guarantee limits.

The basics Features & Benefits are available on loan against bank guarantee:

We provide the Lowest Rate of Interest on the loan amount.

No upfront service charges

No maximum limit restriction.

Interest calculation on per day utilization basis.

Bank guarantees are very commonly utilised among business entities. The debtor, borrower, or customer can purchase equipment, machinery, raw materials, acquire additional funds, etc. for commercial purposes with the help of a bank guarantee. Bank guarantees help businesses as creditors will get proper reassurance that the loan amount will be repaid by the bank if the business is unable to repay the loan entirely on time.

Loan against bank guarantee Eligibility Criteria depends on numerous factors like age of individual, repayment history, business sales/turnover, total work experience & Creditworthiness etc.