Bank Guarantee-i

Bank Guarantee-<i>i</i>
A Bank Guarantee (BG-i) is a payment undertaking given by the Bank (guarantor) in writing at the request of customer (principal/ applicant) to pay stated sum of money to the beneficiary upon presentation of written demand. BG-i serves as a surety by Al Rajhi Bank who agrees to be responsible for the financial obligation of the applicant. It is issued on behalf of customer to facilitate the usage of products or services, or to secure contracts and issued guarantee instrument. The BG-i product can be offered to customer with/out financing facility.
Product Features
• Applicable via financing line or cash mode solution
• Available in MYR & selected foreign currencies
FEES TYPE DETAILS
Kafalah BG-i - with Trade Limit
• Issuance/Amendment RM400.00 flat
Wakalah BG-i - Backed by Cash Margin
• Issuance 0.1% per month (1.2% per annum) on the guaranteed amount, subject to a minimum of RM100.00 per BG-i issued

• Amendment related to extension of period or increase in amount

0.1% per month (1.2% per annum) on the guaranteed amount, for the additional guarantee period or additional guarantee amount, subject to a minimum of RM 100.00 per BG-i issued.
• Amendment not related to extension of period or increase in amount i.e. revision of clause or change in beneficiary RM100.00 flat
* Notes: 
1. Commissions and rates specified herein apply to a single transaction. Any incidental charges such as remittance/postage/courier will be charged according to usage/destination. 
2. Total fees, charges and commission quoted are subject to applicable taxes (if any). 
3. The Bank reserves the right to vary such fees and charges with prior notice or as agreed with the customer in the Letter of Offer. 
• Honour payment to your beneficiary upon receipt of a claim
• No necessity to raise cash to meet the deposit requirements, and funds could be used to support working capital requirements (with financing line)
• Wakalah, Ujrah
The Bank acts as an agent (wakeel) to issue a written guarantee backed by upfront payment from the Customer

 

• Kafalah
The Bank acts as a guarantor where the Bank will guarantee the Customer’s project or performance
• On merit or case to case basis
• Customer who enjoys financing facility with the Bank

TRADE SERVICES CUT-OFF TIMES TURNAROUND TIMES
Issuance of Letter of Credit (LC-i) - Imports
New / Amendment (Subject to applications received complete and in order)
By 12.00 pm To be processed on same day
After 12.00pm  To be processed next business day
New Inward Bills under LC-i
- Document Checking
- Document Arrival Notice
By 12.00 pm To be processed on same day
After 12.00pm  To be processed next business day
Inward Bills under LC-i
Acceptance (Subject to acceptance instruction received)
By 12.00 pm To be processed on same day
After 12.00pm  To be processed next business day
Inward Bills under LC-i
Payment (Subject to Payment Instruction received are in order)
By 12.00 pm To be processed on same day
After 12.00pm  To be processed next business day
New Inward Bills for Collections (IBC-i)
- Document Arrival Notice 
- Acceptance  
(Subject to all documents received are in order)
By 12.00 pm To be processed on same day
After 12.00pm  To be processed next business day
Inward Bills for Collections (IBC-i)
Payments  (Subject to payment Instruction received are in order)
By 12.00 pm To be processed on same day
After 12.00pm  To be processed next business day
Exports – Advising/Confirming/   Transfer of Export LCs
(Subject to all  inward LCs received)
By 12.00 pm To be processed on same day
After 12.00pm  To be processed next business day
Export Collection under LC / Non LC (OBC-i)
-  Documents Examination
-  Bill Creation / Payment 
(Subject to documents received complete and in order)
By 12.00 pm To be processed on same day
After 12.00pm  To be processed next business day
Shipping Guarantees (SG-i)
New/Cancel
(Subject to application and documents received complete an in order)
By 12.00 pm To be processed on same day
After 12.00pm  To be processed next business day
Air Waybill / Bill of Lading Endorsement
(Subject to application and documents received complete an in order)
By 12.00 pm To be processed on same day
After 12.00pm  To be processed next business day
Banker’s Guarantees (BG-i) & Standby Letters of Credit (SBLC-i)
New / Amendment 
(Subject to application/request received are in order and comply to standard procedure)
By 12.00 pm  
Banker’s Guarantees (BG-i) & Standby Letters of Credit (SBLC-i)
Cancellation (Subject to applications received complete and in order)
By 12.00 pm  
Banker’s Guarantees (BG-i) & Standby Letters of Credit (SBLC-i)
Claim (All claims on BG to be processed within 7 business days from receipt date of letter of demand at TSD counter)
By 12.00 pm  
Trade Commodity Financing-i 
Purchase Commodity & Disbursement (Subject to application and documents received complete and in order)
By 12.00 pm To be processed on same day
After 12.00pm  To be processed next business day
Trade Commodity Financing-i 
Partial Settlement/ Early & Full settlement
By 12.00 pm To be processed on same day
After 12.00pm  To be processed next business day
Bank Guarantee (BG-i) – Wakalah against Cash Margin
- New / Amendment  (Subject to application and documents received complete and in order)
By 12.00 pm To be processed on same day
After 12.00pm  To be processed next business day

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