Bank Guarantee
Now grow your business with confidence!
U Bank offers the Bank Guarantee facility with which its customers, including farmers and small and medium-sized entrepreneurs, can foster their businesses and enhance their potential. This facility offers a 100% Cash-Back Bank Guarantee for buyers and sellers, to help them secure new contracts, expand their business, and establish trust with their suppliers.
A bank guarantee is a written instrument guaranteeing that the bank, on behalf of its customer, will cover the payments of the respective customer in case they default. This enables customers to purchase supplies and equipment on credit for the smooth running of their businesses, while adding credibility to their everyday transactions.
This facility is available for a specified amount of financing and time period.
Salient Features
Bank Guarantee Amount: From PKR 100,000 up to PKR 3,000,000
Offering a 100% Cash-Back Guarantee
Bank Guarantee Tenure: up to 12 months with the option of renewal or amendment
Term Deposit Certificates acceptable as collateral
Required Documents
- Copy of the applicant’s CNIC
- Two passport-sized photographs
- Bank Guarantee application form
- Guarantee text and beneficiaries’ details
- Any other documents required by the bank
*Terms & Conditions are applicable.
FAQs
What is a Bank Guarantee?
A bank guarantee is a written instrument guaranteeing that the bank, on behalf of its customer, will cover the payments of the respective customer in case they default. This facility is available for a specified amount of financing and time period.
Who can apply for this loan?
Any resident Pakistani with a valid CNIC/NICOP
What is the eligibility criteria?
The applicant must have the ability to run or initiate a business activity and be economically active.
Is there any age limit for the applicant?
The applicant should be between 18 and 68 years old at the time of loan application and maturity, respectively.
What is the procedure to apply for the Bank Guarantee?
The customer will be required to follow the following steps:
- Visit your nearest U Bank branch
- Fill out the Bank Guarantee Application
- Provide the required KYC documents
- Deposit any upfront charges
- Sign the application form and submit it to the bank
What documents are required to apply for the Bank Guarantee?
The following documents are required to apply for this service:
- Copy of the applicant’s CNIC
- Two passport-sized photographs
- Bank Guarantee application form
- Guarantee text and beneficiaries’ details
- Any other documents required by the bank
For what purpose can I apply for a Bank Guarantee?
For Business and Agriculture use
What kind of processing charges are applicable?
Loan application processing fee and commission fee (Applicable as per SOC)
Is collateral required to apply for this product?
Yes. Collateral options include cash or Term Deposit Certificates