At the request of parent companies in India, Banks issue guarantee’s in favor of the overseas financial institutions providing financing or credit lines to the local enterprises wholly or partly owned by the parent companies, to guarantee these overseas enterprises fulfill their obligations to repay the principal and interest of loans or the fund according to the credit line agreement.At the request of parent companies in India, Banks issue guarantee’s in favor of the overseas financial institutions providing financing or credit lines to the local enterprises wholly or partly owned by the parent companies, to guarantee these overseas enterprises fulfill their obligations to repay the principal and interest of loans or the fund according to the credit line agreement.

Functions

Address the difficulties faced by the Indian-invested enterprises abroad on fund shortage and credit line, and provide financing services for overseas development of the "Going out" enterprises.

Features

Indian invested enterprises abroad can procure credit support from local financial institutions through bank guarantee obtained based on the strength of the parent companies at home.

Application Qualifications

• The applicant shall have the qualification to engage in underlying transactions;
• The applicant shall maintain good credit standing without any bad record;
• The applicant shall have sufficient credit line or be able to pay sufficient margin necessary for issuing the letter of guarantee;
• The applicant shall possess real relationship of transactions that meets Banks requirements on business compliance;
• The applicant shall provide complete and valid business information.