A bank guarantee is when a lending institution promises to cover a loss if a borrower defaults on a loan. The guarantee lets a company buy what it otherwise could not, helping business growth and promoting entrepreneurial activity
Last Updated Date: May 17, 2022
Laxmi Bank Limited was incorporated as the 16th commercial bank of Nepal in April 2002. The Bank has been combined with limited HISEF finance,The first generation financial firm which was the first merger in Nepalese corporate history, was HISEF finance limited. Laxmi Bank is a technologically driven bank which has been categorized as a 'Class A' financial institution and has been re-registered under “Banks and Financial Institution Act” in 2006. This bank is popular among its customers for its creativity and highest quality services. Laxmi bank believes in offering its clients the services of accountability, professionalism and strong ethical tone. The bank 's key vision is the provision of the most integrated financial services.
A Bank Guarantee loan is an alternative to providing a deposit or bond directly to a supplier or vendor. It is an unconditional undertaking given by the bank, on behalf of our customer, to pay the recipient of the guarantee the amount of the guarantee on written demand.
It is an undertaking by the Bank that payments to the customers and suppliers will be met, without tying up working capital. The Bank holds the cash or assets as security for the guarantee. Customer provides the supplier with the guarantee instead of cash.
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