An assurance that a bank provides to a contract between the applicant and the beneficiary, that the bank will uphold a contract if the applicant fail to fulfil his obligations. It is a legal undertaking to pay the beneficiary a certain sum of money in the event of default in payment or non-performance.
- BG-i is based on Shariah contract of Kafalah (guarantee)
- Issued in Ringgit Malaysia and major Foreign currency
- Fixed expiry date and Fixed claim period
- Fee collected upfront
- Favouring beneficiaries acceptable to the Bank
- Non-Bank standard format requires approval
- Bank to honour claims within 24 hours upon receipt of valid claim