What is a Letter of Guarantee? | Ask Banky

Editor-in-Chief Mohamed Salah

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Editor-in-Chief Mohamed Salah

What is a Letter of Guarantee?

Asked by Banky team 2 months ago
Banky team Reviewed editorial answer

A bank guarantee in favor of a beneficiary, under specific terms, ensures the customer's compliance within defined limits.

Review the amount, duration, and claim conditions.

This may encumber part of your credit limit.

The figures, fees and limits in this answer vary by bank and change over time — confirm them with your bank or the official source before acting.

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