Banker’s Guarantee/Standby Letter of Credit by DBS Bank

Provide payment assurance to your beneficiaries

Reassure your buyer or seller of payment with a Banker’s Guarantee/Standby Letter of Credit. In the event that you fail to fulfil your contractual obligations, we will honour payment to your beneficiaries upon receipt of a claim that complies with the guarantee terms.

 

 How does a Banker's Guarantee/Standby Letter of Credit work?

 

 

  1. Applicant and beneficiary enter into a contract and agree that a Banker’s Guarantee is required
  2. Applicant approaches DBS (issuing bank) to issue a Banker’s Guarantee in favour of the beneficiary
  3. DBS issues the Banker’s Guarantee, and
    1. sends a financial instruction to an advising bank, which is usually located in beneficiary’s country, or
    2. couriers the hardcopy Banker’s Guarantee to the beneficiary, or
    3. notifies the applicant of self-collection at any of branches
  4. Once the advising bank receives the Banker’s Guarantee, it will advise it to the beneficiary

 

Why choose DBS Banker’s Guarantee/Standby Letter of Credit?

  • Grow your business with the Best Trade Finance Bank in India and the bank that was named the Rising Star for the Transaction Bank category, both awarded by The Asset in 2013
  • Leverage DBS Bank’s AA- and Aa1 credit rating to provide your beneficiary with payment assurance upon receipt of claims made out in compliance with the guarantee terms
  • Submit your application through any DBS Branch, or IDEAL™ (our online banking platform) for greater convenience

Product Details

  • Product features
  •  
  • Pricing
    • A Banker's Guarantee/Standby Letter of Credit can be used as a:
      • Payment Guarantee – This protects the beneficiary in the event that the applicant fails to honour the payment under their contract
      • Bid Bond – This enables the applicant (bidder) to use DBS' credit to support the bid, and can also be used to insure the successful bidder that the contract will be met
      • Performance Bond – Some bidding contracts require the successful bidder to provide a performance guarantee to protect against a default
      • Financial Guarantee – This helps the applicant’s overseas subsidiaries obtain financing or credit facilities from banks
    • The Guarantee can be issued by DBS India or by our overseas branches/correspondents, according to the guarantee format provided by the applicant
    • Guarantees issued in favour of beneficiaries must be for a specific amount, expiry date and claim period
    • Guarantees should not be assigned to other parties
    • Guarantees are subject to Indian law and the jurisdiction of the Indian courts

 

FAQs For Banker’s Guarantee/Standby Letter of Credit by DBS Bank

 

Where do I find a Banker’s Guarantee/Standby Letter of Credit format?

The format is usually provided by the issuing bank or the beneficiary of the Banker’s Guarantee/Standby Letter of Credit. Alternatively, you may get a copy from your Relationship Manager or contact us at businesscareIndia@dbs.com.

 

How long does it take to process a Banker’s Guarantee/Standby Letter of Credit?

We can process your Banker’s Guarantee/Standby Letter of Credit within 24 hours, provided the application and credit limit are in place.

 

Where do I collect my Banker’s Guarantee/Standby Letter of Credit?

You may collect it from any of our branches.

 

How do I apply?

Simply submit your application form and a copy of the guarantee format at any of our Branches or viaIDEAL™. Alternatively, please send us an email at customercareindia@dbs.com and we will be glad to assist you.

About

Today Asian economies are shaping global growth, giving rise to many new opportunities to grow your wealth. As a bank that’s born and bred here, we have what it takes to ensure that you are always in the know. Enabling you to arrive at more informed decisions that make it easier for you to harness the potential of Asia

  • At DBS Bank, we understand Asia, its markets and its people. Providing you with fresh thinking and an abundance of experience. Whether it’s through our tailored solutions or timely insights and expert advice
  • With unmatched local knowledge and research, an Asia-focused, 15-country network, and enduring relationships with customers across borders, we help you achieve your financial goals through a variety of investment options.

Access. Advantage. All over Asia.

  • And stay abreast of market developments with our daily in-depth analyses and reports, brought to by our multiple award-winning DBS Group Research and Chief Investment Office teams.

About

Lender Title
Federal Bank Federal Goldsmiths Loan Scheme By Federal Bank
Federal Bank Federal Goldsmiths Loan Scheme By Federal Bank
Federal Bank Loan to Mobile/ DTH/ Other Electronic Recharge Vendors By Federal Bank
Federal Bank Loan to Mobile/ DTH/ Other Electronic Recharge Vendors By Federal Bank
Federal Bank Asset power Scheme – Business Loans for Professionals By Federal Bank
Federal Bank Asset power Scheme – Business Loans for Professionals By Federal Bank
Federal Bank SME Parametrised Scheme By Federal Bank
Federal Bank SME Parametrised Scheme By Federal Bank
Federal Bank Loan against Rent Receivables By Federal Bank
Federal Bank Loan against Rent Receivables By Federal Bank
IDBI Bank Collateral Free Loans for SME By IDBI Bank CGMSE Loans
IDBI Bank Collateral Free Loans for SME By IDBI Bank CGMSE Loans
IDBI Bank SME Smart Line of Credit By IDBI Bank SME Smart Line of Credit
IDBI Bank SME Smart Line of Credit By IDBI Bank SME Smart Line of Credit
IDBI Bank Vendor Finance, Vendor Finance in India – IDBI Bank Vendor Finance Program
IDBI Bank Vendor Finance, Vendor Finance in India – IDBI Bank Vendor Finance Program
IDBI Bank Solution to Financial Needs of Traders, Wholesalers and Retailers - IDBI Bank Sulabh Vyapar Business Solutions
IDBI Bank Solution to Financial Needs of Traders, Wholesalers and Retailers - IDBI Bank Sulabh Vyapar Business Solutions
IDBI Bank Loan for Small Business By IDBI Bank MSME Finance
IDBI Bank Loan for Small Business By IDBI Bank MSME Finance

Pages

Interested? Please leave your details and we will contact you soon