Bank Guarantees
Bank guarantees are written irrevocable undertakings issued by the Bank to pay the beneficiary a specific sum of money on demand in the event that its customer/applicant has not fulfilled his/her contractual obligation within the validity of the guarantee. The Bank guarantees Bid security/Bid bonds, performance guarantees, advance payment guarantee, retention guarantees, shipping guarantees and customs bonds.
Product Features
Denominated in both local and foreign currency.
Maximum Guarantee amount of up to UShs. 44.8 Billion
Non fund-based facility
For Bid Bonds/Securities Maximum unsecured limit of UShs 600 million
50% Security cover for other types of guarantees.
Attracts fees and commission as per tariff
Benefits
Fast and easy processing
Opportunity to access an unsecured limit up too UShs. 600 million for bid guarantees /bonds only.
Client obtains credit hence easing increase in liquidity
Opportunity to secure business contracts
Accessed alongside other credit facilities
Immediate compensation to beneficiary in case of default.
Requirements
Completed Bank Guarantee application form
Financial card
Possession of relevant business experience
For other types of guarantees, Security cover of up to 50% in the form of cash or mortgage on property.
In addition, For other types of guarantees, requirements similar to commercial loans.