These are the guarantees issued by the Bank on behalf of the party who is willing to participate in the tender called by the beneficiary (Normally Government Entities), such as for the supply of various goods or various construction works. The beneficiary would call for tenders from potential suppliers of these goods/services.

Performance guarantees are issued by the Bank on behalf of its customers to whom the contract/tender has been awarded by the beneficiary to complete the project as per agreement. The contractor has to submit a Performance Bond at the time of signing the contract.

An advance payment guarantee is issued when applicant need an advance payment from the beneficiary to commence the project related work. Applicant receives money in advance from the beneficiary in order to perform his obligation and in turn the beneficiary would request for an Advance Payment Guarantee.

Today large volumes of business transactions take place on credit terms and in order to facilitate such transactions among unknown parties Credit Guarantees are issued by banks. Credit Guarantees minimize the credit risk of the seller and generally a dealer/distributor/agent would be called upon to provide a bank guarantee to purchases goods from the Principal on credit terms.

These are issued in lieu of payment of duty on certain categories of imports to the Customs Office. There are several types of guarantees issued to Customs Department. They are given below:
<ul>
<li>Duty Guarantee</li>
<li>Duty Rebate Guarantee</li>
<li>Bonded Warehouse Guarantee</li>
<li>Exim Code Guarantee</li>
</ul>
These guarantee shall be issued open ended which shall not be cancelled until formal release letter received from the Customs Office along with original guarantee.

It is a guarantee issued by the Bank in favor of Court of Nepal for depositing security money as required by the court from the applicant. Such guarantee shall be issued open ended which shall not be cancelled until formal release letter received from the Court along with original guarantee.

Bank guarantees are written obligations of the Issuing Bank to pay a sum to a beneficiary on behalf of their customer in the event that the customer himself does not pay the beneficiary or does not fulfill his contractual obligation agreed with the beneficiary. &nbsp;It is important to note that the Guarantor / Bank will have to settle the claim of the beneficiary regardless of any dispute between its customer and the beneficiary.
Type of guarantee are issued by bank:
<ul>
<li style="text-align: justify;">Bid Bond (Tender Guarantee)</li>
<li style="text-align: justify;">Performance Guarantee</li>
<li style="text-align: justify;">Advance Payment Guarantee</li>
<li style="text-align: justify;">Credit Guarantee</li>
<li style="text-align: justify;">Customs Guarantee</li>
<li style="text-align: justify;">Court Guarantee</li>
</ul>

Bank Guarantee

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