"A Bank Guarantee is an irrevocable undertaking issued by the guarantor (bank), upon instructions or request of the principal (applicant or bidder or performer) to pay the beneficiary any sum that may be demanded by that beneficiary up to a maximum amount determined in the guarantee, upon presentation of a demand conforming with the terms of the guarantee.
Sewa Bikas Bank Ltd. on behalf of its customers issues various types of guarantees in favor of domestic beneficiaries."
Contracts are awarded generally through the process of bidding. Usually, notice of tender is published in newspapers where the beneficiary ask every bidder either to deposit an earnest money, which is normally 2 to 10% of the bidding amount, or to present a bank guarantee of a reputed bank for the same amount. Beneficiary uses that guarantee as a security in case the bidder refuses to accept the contract. A bank guarantee designed to serve that purpose is a Bid Bond. Our Bid Bonds are widely accepted by national and international organizations.
A bank guarantee issued to the beneficiary to ensure the performance of the bidder is a Performance Bond. Once a contract is awarded to a bidder, he/she has to perform the specified job as per the terms and conditions mentioned by the beneficiary in the contract. To be assured of the bidder's performance, the beneficiary requires a bank guarantee from the bidder. If the bidder fails to perform as per the terms and conditions of the contract, the beneficiary can invoke the guarantee and claim the stated amount from the guarantee-issuing bank.
We issue Performance Bond at a competive rate.
Sewa Bank also issues credit information to any party at request.
Free ABBS Service
Customers can make deposits & receive cash for their check from any of our Branches and Offices at no extra cost.