Bank Guarantee Margin

This is the simplest way of getting a BG issued from a bank. In case of domestic BG, bank seeks a cash margin of 100% in form of Fixed Deposits and that in case of any foreign BG the cash margin can range any where from 105% to 110% depending from bank to bank. The additional margin kept in case of foreign BG is to take care of currency rates fluctuations.

Leave a Comment