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 16, 2022
In 1987, when it was first formed as a joint venture, Standard Chartered Bank Nepal Limited became operational. The Standard Chartered Group's global network provides the bank with a rare opportunity to provide genuinely international banking services in Nepal. A wide range of banking products and services are provided by Standard Chartered Bank Nepal Limited to a wide range of customers, including individuals, local mid-market firms, multinationals, main public sector companies, government companies, airlines, hotels, as well as the DO segment comprising embassies, aid organizations, NGOs and INGOs. Corporate Social Responsibility is an important part of the vision of Standard Chartered to become the world's best foreign bank and is the core pillar of the Bank's principles. Standard Chartered Bank Nepal Limited focuses on children's initiatives, particularly in the fields of health and education, and supports non-governmental organizations engaged in community charitable activities.
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.