A bank guarantee is a financial commitment issued by the bank at the request of a client (the applicant), under which the bank undertakes to pay a specified amount to the beneficiary if the applicant fails to fulfill their contractual payment or performance obligations. This instrument provides assurance to the beneficiary that the agreed obligations related to payment, delivery of goods, or provision of services will be met.
Types of Bank Guarantees:
Fees and commissions
Terms | Fee |
|---|---|
Advising fee | USD 15 |
Inform of amendments to terms and conditions | USD 10 |
Issuance of a foreign bank guarantee | 0.2% |
Min. USD 150 | |
Max. USD 350 | |
Inquiry from a foreign bank | USD 20 |
Cancellation of a guarantee | USD 40 |
Monthly rate of risk fee for uncovered guarantees is as per decision by the credit committee of the Bank. | |
Uncovered DC credit analysis fee is as per standard terms and conditions of the Business | |
Additional fees associated with the foreign bank services and courier may apply for the account of the applicant | |
Domestic bank guarantee service fees: | |
Issuance of a bank guarantee | MNT 30,000 |
Amendment to terms and conditions | MNT 20,000 |
Cancellation of a guarantee | Covered - free of charge |
Uncovered - MNT 10,000 | |
Uncovered DC credit analysis fee is as per standard terms and conditions of the Business Loan. | |
Monthly rate of risk fee for uncovered guarantees is as per decision by the credit committee of the Bank. | |
