SIDBI - Small Industries Development Bank of India

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.

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.

As applicable under Direct Credit Scheme and as advised/modified from time to time.