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    Non-Funded Loans are like Letter of Credit, Bank Guarantees in which the fund of the Bank is not directly used; but there is obligation of the Bank to repay the amount in case of default by the client/applicant. In case of default by the client, Bank has to repay the amount converting the non-funded exposure to funded exposure (forced loan).


    Non-Funded credit facilities are developed to facilitate the issuance of letter of credit (LC), bank guarantee (BG), telex transfer (T.T) etc. to small, medium and large business enterprises to import/domestic trade purpose in order to avoid immediate cash outflow of the client by assurance to the third party on the behalf of the client.


    • Bank Guarantee –BBG, PBG, APG, SCG, Custom Guarantee & other
    • Letter of Credit- Sight/or Usance LC as per requirement
    • Designed for contractors, suppliers, businessman, service providers, individual, firms and companies.
    • Collateral security as per STC.
    • Charge, Commission & penalties as per STC.
    • Tenure: Revolving basis subject to performance

    Required Documents

    • Beneficiary and applicant’s guarantee requisition letter with BG Application form.
    • Company registration certificate, PAN/ VAT with latest tax payment receipt.
    • Citizenship
    • Copy of partnership deed in case of partnership firm.
    • AOA, MOA.
    • Board minute in case of Pvt. Ltd company.
    • Audited, Management prepared or provisional financial statement of last 2 years for the running company and projected financial statement for a new company for the next 5 years
    • Lalpurja/ blueprint/ tiro tireko rashid/ char killa/ wealth tax payment receipt from borrower
    • The stock report, receivables report, payable report & bank outstanding report in case of an existing firm.