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Email: suretyhanoi91@sgic.co.kr

Products & Service

Products

Introduction

SGI Hanoi Branch provides 6 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

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 ;

» Key facts of Bond contract
» Bond application form
 

Bid Bond

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.

Premium rate: Premium rate ranges from 0.037%~0.114% varied by contract type and Principal’s credit grade.

» Bid Bond Terms & Conditions
 

Performance Bond

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.

Premium rate: Annual rate ranges from 0.553%~3.176% varied by contract type and Principal’s credit grade.

» Performance Bond Terms & Conditions
 

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.

Premium rate: Annual rate ranges from 0.651%~2.080% varied by contract type and Principal’s credit grade.

» Advance payment bond Terms & Conditions
 

Maintenance Bond

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.

Premium rate: Annual rate ranges from 0.200%~0.847% varied by contract type and Principal’s credit grade.

» Maintenance Bond Terms & Conditions
 

Counter guarantee bond

Counter Guarantee Bond (CGB) can be used as collateral for the issuance of bank guarantee, in case a contractor does not have any credit facility in such bank. CGB amount is equal to or more than that of bank guarantee since the former covers the guarantee amount plus expenses, fees and costs incurred. CGB period is equal to or longer than that of bank guarantees, taking into account an additional period needed for mailing.

Premium rate: Annual rate ranges from 0.039%~2.542% varied by contract type and Principal’s credit grade.

» Bond application
» Counter Guarantee Bond Terms & Conditions

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.

Premium rate: Annual rate ranges from 1.277%~2.959% varied Principal’s credit grade.

» Bond application
» Personal Loan Bond Terms & Conditions

Personal Loan Guarantee Insurance

Personal Loan Guarantee Insurance guarantees the Obligor’s loan repayment obligations to the Principal who are also the Banks (Beneficiary). In case the Obligor fails to repay the loan principal or interest thereon due to protracted default or event of acceleration, the Beneficiary is entitled to file claim for the loss. The insured amount is from 100% of the principal amount of Loan, and the insurance 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 guarantee issuance including but not limited to the Obligor’s qualification and the loan conditions are specified in the Comprehensive Agreement.

Premium rate: Annual rate ranges from 1.277%~2.959% varied Obligor’s credit grade.

» Bond application
» Personal Loan Guarantee Insurance Terms & Conditions