Guarantee Scheme for SSI and service sector units
Product/ Types of guarantees being offered
- Ordinary Guarantee - Both Financial and Performance Guarantee.
- Deferred Payment Guarantee
Eligible borrowers
- Existing customers (in small scale sector and eligible service sector units) of SIDBI with satisfactory track record.
- New customers (in small scale sector and eligible service sector units) can be sanctioned both fund based and non-fund based limits as a composite package of assistance.
- Guarantee would not be available as a stand alone facility i.e. Guarantee would not be considered on behalf of customers who have not/are not going to avail debt assistance from SIDBI.
Nature of requirement
- Guarantee would be issued only for the Customer’s normal trade/business.
- Guarantee would be offered for meeting the adhoc /casual /one time requirement of the Customer.
- Guarantee limit would be offered for meeting continuous guarantee requirements of the Customer.
Restricted areas
- Guarantees governed by regulations issued under Foreign Exchange Management (Guarantees) Regulations ( Bid bonds and performance bonds or guarantees for exports, Unconditional Guarantees in favour of Importers on behalf of Indian Exporters and Deferred Payment Guarantees for Imports under Foreign Loans/ Credits ) would not be offered.
- Guarantees would not be issued in favour of sister concerns/associate concerns, group concerns, relatives of the promoters/directors or the companies/firms floated by the close relatives of the promoters/directors.
- Guarantees would not be issued in respect of inter-company deposits or loans i.e. guarantees covering deposits or loans accepted by one non-banking company from another non-banking company or Trust or Association or from other financial institutions including LIC of India, GIC of India, UTI.
- Guarantees on behalf of customers favouring other banks/FIs guaranteeing the repayment of the moneys borrowed by the customers are presently not being offered.
Processing charges and Guarantee Commission
- As applicable from time to time.
Other norms and parameters
- As applicable under Direct Credit Scheme and as advised/modified from time to time.
