To make the entire loan process easier and faster, SBI has introduced the e-bank guarantee facility, so that now customers will not have any problem taking loans. The loan will be passed quickly.
The country's largest bank State Bank of India (SBI) will also now issue Electronic Bank Guarantee. SBI will issue e-Bank Guarantee in partnership with National e-Governance Service Limited (NeSL). The electronic bank guarantee will be issued on the portal of National e-Governance Service Limited. Through this, he will provide quick and paperless services to the customers. This will greatly reduce the time taken for a bank guarantee.
The issuance of electronic bank guarantees in India was started by HDFC Bank. HDFC Bank started this service on 4th September. Electronic Bank Guarantee is the electronic form of the Guarantee which is completed by the bank with the paperwork. It is in electronic form and there is no need to submit any kind of documents in it. Electronic bank guarantee does not require a manual signature for re-verification and maintenance of other documents for the record. This makes the whole process of bank guarantee easy.
With the introduction of the e-Bank Guarantee by SBI, customers and other beneficiaries will be able to obtain e-Bank Guarantee instantly using the NESL portal without any additional documentation. SBI says that with the introduction of e-bank guarantees, the time taken for bank guarantees will be greatly reduced.
What is a bank guarantee?
A Bank guarantee is the promise of the bank that it will meet the debtor's liabilities if the contractual obligations are not met. With a bank guarantee, the bank ensures that the liabilities of the borrower will be met. If the debtor fails to repay any loan, then the bank will meet it. The advantage of a bank guarantee is that it makes it easier for the debtor to take loans for business or other purposes.
What will be the benefit of an e-bank guarantee?
An electronic bank guarantee is a better alternative to paper-based guarantees. Electronic guarantees can be easily processed, verified, and delivered. Normally it takes 3 to 5 days to issue a paper-based bank guarantee. But in electronic bank guarantee, this whole process will take just a few hours. With this initiative, all types of bank guarantee documents will be safe, which we can see anytime, as well as any kind of fraud can be avoided.
