Bank guarantee is another methodsecure loans. In essence, this is a guarantee for the borrower. But the credit organization is entrusted for it. The bank acts in the transaction as a person who gives a guarantee to the lender (beneficiary). In case of default by the borrower (principal), the guarantor pays his debt.
Along with banks, insurance companies can act as guarantors. The ability to issue such guarantees must be registered in the license for the provision of services.
A bank guarantee can be issued both to a legal entity and to a physical person (only if it is an individual entrepreneur). Consider the option with an individual.
Under what conditions you can count on a bank guarantee?
1. If you have an account with this bank and it is actively working.
2. If you have repeatedly taken loans from this bank, and you have a good credit history.
The guarantor issues a guarantee letter to the principal. And he does it far from free. The letter indicates the warranty period, the amount of money and the conditions under which it can be "activated".
The provision of a bank guarantee is possible when collecting a package of documents on the following list:
copy of the passport;
certificate of the amount of income received (six months);
copy of employment record;
documents of title to property owned (real estate, automobile, securities, etc.). If the bank guarantee is unsecured, then such documents are not required.
INN;
SNILS.
The list can be supplemented depending on the requirements of a bank.
If there is a moment when the borrower does not pay the loan to the lender, the latter issues a claim against the guarantor bank. The bank pays its guarantee - and the borrower's debt now goes to the guarantor bank.
Bank guarantee is not tied to a specificcredit or commitment. If one bank did not give you a loan, then you can use this guarantee in another bank. Even if you have already repaid the loan, and the period specified in the guarantee has not yet passed, it is still valid and you can again take out a loan for it.
The bank can return its guarantee (this condition must be initially spelled out). But he has the right to do this only before the creditor makes a claim to him.
Depending on the payment options of the letter of guarantee, the following types of it can be distinguished:
Unconditional guarantee - payment of the guarantee occurs upon the first request of the beneficiary.
Conditional guarantee - payment of the guarantee is also at the request of the bank, but subject to the provision of documents confirming the need for this payment.
Secured guarantee - issued to the principal in exchange for the pledge of property.
A syndicated guarantee is when a few banks act as a guarantor on a loan.
In addition to securing a loan, a bank guarantee can be issued for:
Participation in tenders, auctions. Is the guarantor of the serious intentions of the participant and the mandatory payment of the terms of the contract in case of winning the competition.
Contract payment. Acts as a guarantee of payment to the supplier of goods or services of the amount specified in the contract.
These are only the most common types of guarantees.
In Russia, this type of software is just beginning to gain its popularity. Therefore, when referring to this type of security, attention should be paid to the correct legal execution of the transaction.
