Insurer-backed · typically 1–3% a year
Back your bids with a surety bond, and keep your bank limit free.
A surety bond gives the department the same security as a bank guarantee, issued by a licensed insurer instead of your bank. Share your tender on WhatsApp and we do the legwork: gather quotes, handle the paperwork and stay on until the bond is issued, usually within a week.
- We handle the paperwork, start to finish
- Quotes from several insurers, side by side
- No property pledged for rated firms
- No charge for our help
Bank guarantee or surety bond
Compare the real cost of each route
Both give the department the same cover. Enter your bond and period to see the like-for-like cost, including what a bank guarantee quietly costs you in tied-up money. No sign-up needed.
What is the guarantee for?
Amount to secure (₹)
Bid security usually runs 3–6 months. Match your bid validity period.
How strong is your credit profile?
Unsure? Leave it on “Unrated or unsure”. These rates are for a first bond; both the bank's and the insurer's improve as you build a track record.
How would the bank guarantee be secured?
This changes what the guarantee really costs.
Use your own rates (optional)+−
Have quotes in hand? Enter them and everything updates live.
A surety bond is about 59% cheaper
₹1,67,550saved
over 12 months, compared with a bank guarantee, with no collateral.
₹25 L
of cash kept free, not parked as margin
16 days faster
5 days to issue, against 21 for the bank
Bank guarantee
All-in cost
₹2,85,550
- Commission (1.35%) and fees₹72,500
- GST at 18%₹13,050
- Cost of tied-up cash (8% a year)₹2,00,000
- Money tied up as margin
- ₹25,00,000 (50%)
- Time to issue
- 21 days
Surety bond
Lower costAll-in cost
₹1,18,000
- Insurer premium (2%)₹1,00,000
- GST at 18%₹18,000
- Money tied up as margin
- ₹0
- Time to issue
- 5 days
These are estimates. The cost of tied-up cash is 8% a year, net: what that money could earn in your business, less the FD interest the margin earns. Bid bonds need no margin; an unrated firm's first performance bond may need a small FD margin, and none once you are rated or have a track record. Your bank's sanction letter and the insurer's underwriting set the real rates.
Bid security (EMD): ₹50,00,000 for 12 months. Estimates only.
₹29,000 Cr+
in bonds issued across 3,300+ guarantees (industry estimate, 2026)
300+
government departments accept surety bonds
3–7 days
typical time to issue, against 2–4 weeks for a bank guarantee
₹0
of your bank limit used, so the next tender can go ahead
What you get
Handled for you, with nothing to chase
We do the paperwork
One team takes your application through to issue: the forms, the insurers and the follow-ups.
Several insurers, one comparison
Your file goes to a panel of licensed insurers, and the quotes come back side by side.
Quicker approval
Bonds are usually issued within a week. A bank guarantee tends to take two to four weeks.
Nothing extra to pay
You pay the insurer's premium and GST. There is no fee for our help on top.
Bond types
Which guarantees a surety bond can replace
Bid bond (EMD)
Goes in with your bid in place of a bank EMD. Typically 2–5% of the tender value.
Performance bond (PBG)
Replaces the performance bank guarantee after award. Typically 5–10% of the contract value.
Advance payment guarantee
Secures a mobilisation advance, so you can start work without using your own cash.
Retention money bond
Gets retained payments released early by giving the buyer a bond instead of leaving the money with them.
The usual worry
Will the department take it?
For government procurement, yes. Here is what to point to if an officer asks.
The rule
The General Financial Rules, as amended in 2022
The Ministry of Finance made insurance surety bonds an accepted form of bid and performance security, on equal footing with a bank guarantee.
Who accepts
300+ departments
Central ministries, railways, PSUs and state departments: more than 300 government bodies accept surety bonds as bid and performance security.
Track record
₹29,000 Cr+ issued across 3,300+ bonds
That is the industry estimate for 2026. Contractors across India already rely on surety bonds at this scale, so this is well past a pilot.
Check the tender first
The tender document is what counts, and a few NITs still say “bank guarantee only” in the security clause. Send us the NIT and we read that clause before you spend a rupee. If a bond will not be accepted, we tell you the same day.
The process
Three steps, mostly on WhatsApp
- 1
Send us the tender
The tender name or NIT number, the amount and type of bond, and the submission deadline. A photo of the pages is enough.
- 2
We collect quotes
Your file goes to several insurers. We compare the premiums and explain the options in plain language.
- 3
The bond is issued
Usually within 5–7 days. We stay on until it is in your hands, and repeat bonds are quicker.
FAQ
What contractors ask first
Do I have to pledge property or other collateral?
A bid bond needs no margin. An unrated firm's first performance bond may need a small FD margin, and none once you are rated or have a track record. Your bank limit stays free either way.
What will it cost me?
Insurers quote roughly 0.25–3% a year, depending on the bond type and your rating. Our help is free, so you pay only the premium and GST. The calculator above compares it with a bank guarantee.
How quickly can I get one?
Usually within 5–7 days of a complete file, against two to four weeks for a bank guarantee.
What if the tender says bank guarantee only?
The tender document is what counts. Send us the NIT and we read the security clause before you spend anything. If a bond will not be accepted, we say so the same day.
How exact is the calculator?
It is an estimate. It uses typical first-bond rates, and your bank's sanction letter and the insurer's underwriting set the real figures. You can enter your own rates.
Ready to free up your bank limit?
- Licensed insurers
- No collateral for rated firms
- Issued in 5–7 days