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Letter of Guarantee Scheme

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Type of Loan

Special Loan

Scheme name

Letter of Guarantee Scheme

Purpose of the loan

To offer Bank Guarantee (BG) for units assisted by the Corporation

Eligibility Criteria

  • Guarantee to Bank, for availing Letter of Credit (LC) from the Bank, for import of machinery, raw materials, etc
  • For bidding process, obtaining advance payment, releasing retention money, procuring raw materials, etc
Maximum Guarantee Eligibility Up to 100% of the Guarantee required

Internal credit rating

Minimum Internal Credit Rating requirement will not be applicable

GUARANTEE PERIOD

the Guarantee issued shall not be more than five years

GUARANTEE COMMISSION

The applicable guarantee commission plus GST for the entire guarantee period