Guarantee
Is the irrevocable undertaking issued by the bank to a buyer/contractor guaranteeing that the buyer/contractor will comply to its obligations under the contract. If the buyer/contractor fails to comply, the bank will be liable.
Types of Guarantees Issued By Access Microfinance Bank
- BID/TENDER Guarantee (bond)
- PERFORMANCE Guarantee (bond)
Bid/Tender Guarantee (Bond)
This is a guarantee issued to contractors for tendering the work. The percentage required is from 2-5% of the contract amount.
Condition
- It must be fully secured by either Mortgage or Cash
Pricing
Issuing fee is 0.5% of the guaranteed amount with minimum fee of 20,000 TZS
Performance Guarantee (Bond)
This is a guarantee issued to contractor(s) to enable them to execute contracts awarded to them. The percentage required is from 2-10% of the contract sum.
Condition(s)
- It must be fully secured by either Mortgage or Cash cover
Pricing
Issuing fee is 0.5% of the guaranteed amount with a minimum fee of 50,000 TZS