The request for bank guarantees in support of contractual obligations has become a common practice in the market and different forms of guarantees have evolved to meet the various types of commercial and financial transactions. The letter of guarantee is issued for business / trade / contract permitted by law and is considered a non-fund based facility.
SME Bank Letter Of Guarantee Products Features
1. Have a financing service from Rs 0.5 million to Rs 200 million
2. The term is from three to twelve months or the term of the contract (extendable / renewable upon expiration).
3. Commission based on charge schedule (SoC) (will be charged in advance)
4. Cash margin 20% of the amount issued.
5. Existing business entities that have the status of (sole proprietorship, partnership or private limited partnership or corporate entities) are eligible to make use of this type of service.
6. Mortgage of urban residential / commercial / industrial properties acceptable to the bank (The maximum financing will be 70% of the Forced Sale Value of the guarantee and guarantee).
7. Plant and Machinery / Stock Mortgage (with 25% margin).
8. Sponsor / partner / directors personal guarantees Third party guarantee (optional)
Who can Apply for SME Bank Letter Of Guarantee
1. Sole proprietors, associates and all other legal entities
2. For the creation of new businesses and the expansion of existing businesses.
3. Desirable bank account
SME Bank Letter Of Guarantee Documents Required
1. Copy of the CNIC, photograph and bank statement of the sponsor
2. Tax returns and property documents offered as collateral
3. Audited accounts (if the loan exceeds 10 million) / Finances of the last two years preferably
4. Detail and valuation of stock, plant and machinery
5. Personal guarantees
SME Bank Letter Of Guarantee Collateral / Security:
1. Mortgages (Urban property)
2. Hypothecation of plants & machinery/stocks
3. Pledge of Government Securities
4. Lien on Deposits/Term Certificates
How to apply For SME Bank Letter Of Guarantee
To apply for SME Bank Letter Of Guarantee, visit to the nearest SME bank branch for application: https://smebank.org/our-network/
SME Bank Contact Information:
Address: 56-F, Nazim-ud-din Road, F-6/1, Blue Area, P.O Box 1587, Islamabad.
Phone: (+92-51) 9217000
Fax: (+92-51) 9217001