Bank guarantee replacement

Your bank guarantee is holding ₹15 lakh hostage.

Use an insurance surety bond instead — on bid, performance, mobilisation or retention. Zero FD lien. No CC limit blocked. Accepted by 290+ government obligees including NHAI, CPWD, Railways and GeM.

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Accepted by government obligees
NHAICPWDIndian RailwaysGeMState PWDsNHIDCL
What the BG actually costs ₹1.00 Cr bond
Cash locked by the bank15% margin or FD lien, held for the full tenure
₹15.0 L
Surety bond premiumAnnual, nothing pledged, CC limit untouched
₹1.20 L
Working capital you get backFree to fund your next bid, this quarter
₹13.8 L

Illustrative, at a 15% bank margin and ~1.2% p.a. surety premium on a Grade B profile. Your bank may hold more. Final terms depend on underwriting.

Who writes surety in India16 IRDAI-licensed general insurers
TenderLine by Rakshati · to date
₹2,295+ Cr
Project value evaluated
₹240+ Cr
Surety bonds assessed
5.2 days
Average turnaround

Figures reflect TenderLine by Rakshati activity to date. Bond issuance is subject to insurer underwriting.

— Section 01 — Why surety

A bond that does the job of a BG, without locking your cash.

Bank guarantees tie up margin money and eat into your CC limit. An insurance surety bond is backed by an insurer instead, so your working capital stays in the business. Full breakdown in the BG vs surety bond guide.

Bank guaranteeThe old way
  • Cash margin / FD lien locked for the full tenure
  • Eats into your CC / working-capital limit
  • Weeks of paperwork with a single bank
  • Renewal & processing charges every cycle
Cash pledged
10–100%
CC limit
Blocked
Providers
1 bank
Insurance surety bondRakshati
  • Zero FD lien — no cash margin locked
  • Your CC limit stays free for the next project
  • One standardised file; 16 IRDAI-licensed insurers write surety in India
  • Accepted by 290+ obligees — NHAI, CPWD, Railways, GeM
Cash pledged
Nil
CC limit
Free
Providers
15
— Section 02 — Eligibility

Will insurers underwrite you?

Six questions, sixty seconds. You'll see how you score against the criteria insurers actually apply before quoting — and exactly which points need structuring. Indicative only; final terms rest with the insurer.

Indicative read
Strong fit for surety insurers
You clear the headline criteria most insurers apply.
Based on typical insurer underwriting criteria (bond value, constitution, vintage, turnover, rating, sector). Profitable operations, BG-invocation history and credit-line utilisation are also reviewed. Final decision always rests with the insurer.
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— Section 03 — Bond types

Every bond a tender asks for.

Replace any bank guarantee in the contract lifecycle with an insurance surety bond. Hover a card for typical insurer terms, or open the full guide for that bond.

— Section 04 — Process

From tender to bond, made simple.

We help you prepare one standardised file (KYC, financials, tender documents) — so you can get back to the site.

1

Share the tender

Bond type, value and obligee. Two minutes, online.

2

We help prepare one file

KYC, financials and project, in a standard format.

3

Insurer review

IRDAI-licensed insurers underwrite the file and set the premium.

4

Bond issued

The insurer issues the bond in favour of your obligee.

5

Capital stays free

No FD lien, no CC limit blocked. Bid the next one.

Proposal formCompleted bond proposal, countersigned.
Contract / tender copyThe underlying contract or NIT.
Audited financialsPast 3 years, with notes.
Credit rating reportLatest report from a SEBI-approved CRA.
Indemnity agreementGeneral agreement of indemnity · promoters.
— Section 05 — FAQs

Questions, answered plainly.

The five we're asked most. Bond-specific questions are answered on each bond's guide.

How is a surety bond different from a bank guarantee?
A bank guarantee locks up cash margin or an FD lien and eats into your CC limit. A surety bond is backed by an insurer instead, so your working capital and bank limit stay free, for a small annual premium.
Is it accepted by government departments?
Yes. Insurance surety bonds are recognised under Indian procurement norms and accepted by 290+ obligees including NHAI, CPWD, Railways and GeM. We confirm acceptance for your specific tender before you commit.
How quickly can a bond be issued?
Issuance timing is set by the insurer after underwriting. We reply within 4 working hours with the documents your tender needs, so you skip the weeks of paperwork a bank guarantee can take.
What does it cost?
You pay an annual premium, typically a small percentage of the bond value, instead of locking cash as margin. Typical premiums (set by the insurer) start around 0.95% p.a. and vary by grade and bond type. Final terms depend on underwriting.
Which bonds can you replace?
Bid, performance, mobilisation / advance-payment, retention, security-deposit, customs and court bonds — across roads, metro, power, water and other infrastructure sectors.
Your next tender

Stop locking cash in bank guarantees.

Tell us about your next tender. We reply within 4 working hours with the documents your tender needs.

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