17 July 2010
Normally banks issue bank guarantee in favour of any 3rd parties by taking a security deposit for a similar amount from you.
Generally these steps are involved :
1. Make security deposit for a similar or more amount. Generally making FDR is preferred.
2. Apply to bank for Bank guarantee.
3. Normally a set of documents, which could vary from bank to bank, is required to be filled & signed by the authorised signatory of the company.
These forms generally contains : a> Application for bank guarantee b> Application for financial assistance against security deposit c> Counter guarantee (to be printed / pasted on Rs. 100/- stamp paper)
The security deposit is to submitted to bank after duly discharging it in favour of bank. Bank will issue the bank guarantee after marking lien to this security deposit.
Then the bank guarantee is to be printed on Rs. 100/- (depends on the value of the bank guarantee)- bank will return the same with appropriate signature & seal of the bank & giving the bank guarantee reference nos etc.
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