SGI Hanoi Branch provides 5 types of guarantee service to both individuals and enterprises. Products are mainly classified as contract bonds and personal loan bond.
SGI Hanoi Branch’s main contract bonds are providing guarantees to individuals and enterprises that need credit support or improved financial security in order to guarantee the performance of contract. SGI Hanoi Branch also provides Personal Loan Bond with Vietnamese leading banks and this product covers the Principal`s fulfillment of loan repayment obligations.
SGI Hanoi Branch currently provides limited guarantee products, however, we are enlarging the scope of guarantee service with SGI’s long experience and professional knowledge accumulated in the Korean guarantee industry. On the back of client satisfaction, SGI Hanoi Branch will continue to provide support with wide-ranging products and services tailored to the needs of clients.
Contract Bonds are commonly required facilities for contracts and agreements. SGI Hanoi Branch provides guarantees to individuals or enterprises that need credit support or a better security to enter into a contract. Contract bonds consist of the followings ;
Bid Bond covers the loss that is incurred when a successful bidder does not enter into the contract, or if there are reasons for the bidder to withdraw the bid during the period of bid validity specified in the bidding documents. The bond takes effect on the day before the bidding date, and the expiry date shall be more than 30 days after the bidding date. The bond amount shall be 5% or a certain percentage of the bid amount.
Performance Bond protects the project owner from the loss that is incurred when a contractor has not fully performed his duty specified in the contract. The bond period commences on the date of the contract and expires on the date performance is completed as prescribed in the written contract. The bond amount shall be 10% or a certain percentage of the underlying contract amount.
Advance Payment Bond
Advance Payment Bond covers the loss that is incurred in case the Principal fails to repay the advance payment or return the advanced materials when the Principal fails to perform the obligation(s) stipulated in the contract. The bond takes effect from the date of the Principal’s receipt of the advance payment, and expires on the date the performance is completed. The bond amount shall be the advance payment amount that the Principal shall receive from the Beneficiary in advance.
Maintenance Bond guarantees the contractor’s maintenance obligation during a specified guarantee period. The bond period commences on the date that the inspection is completed after the completion of the work or supply, and expires on the expiry date of the maintenance period. The bond amount shall be 5~10% or a certain percentage of the underlying contract amount.
Personal Loan Bond
Personal Loan Bond guarantees the Principal’s loan repayment obligations to the Beneficiary (Banks). In case the Principal fails to repay the loan principal due to protracted default or event of acceleration, the Beneficiary is entitled to file the claim for the loss. The bond amount is the principal amount of Loan, and the bond period is the same as that of the loan period. This product is issued under the comprehensive agreement between SGI Hanoi Branch and banks, so all the conditions for bond issuance including but not limited to the Principal’s qualification and the loan conditions are specified in the comprehensive agreement.