Kaagazaat

Security Deposit Bank Guarantee Format

At a glance

Price: Free, always.
Stamp duty: A bank guarantee is an instrument and stamp duty may be payable on it in Punjab and in Chandigarh, but the duty is charged on the bank's form under the Indian Stamp Act, 1899 as it applies in each place, and the figure is not printed in this format.
Registration: Not required, in Punjab or in Chandigarh.
Witnesses: Not required.

Free

Free, always.

Free: up to 5 documents a day.

Guided questions, full draft on screen, download in Word.

See all prices

Also called

Bank Guarantee in Lieu of Security Deposit
BG for Lease Deposit
Rent Security Bank Guarantee
Bank Guarantee for Commercial Lease
On-demand Bank Guarantee for Tenant
Deposit Guarantee Letter from Bank
Bank Guarantee Draft for Landlord
Zamanat Bank Guarantee

When you need it

Some commercial tenants, especially companies and chains, do not pay the security deposit in cash. They give the landlord a bank guarantee instead: a promise from the tenant's bank to pay the landlord up to a fixed amount if the tenant does not pay what it owes under the lease.

This format is the text of that guarantee, written so the landlord is protected and the tenant and its bank can see exactly what they are agreeing to. The points that matter, and that this format settles, are four. The guarantee is payable on the landlord's written demand, without the landlord having to prove its claim to the bank or first sue the tenant. It has an expiry date, and a further claim period after it, so the landlord has time to make a demand for a dispute that surfaces at the end of the lease. The tenant must extend it before it runs out while the lease is still on, failing which the landlord may call the whole amount and hold it as cash. And it moves with the property, so that a buyer of a tenanted property can take over the benefit. Use it with a lease that says the deposit may be given as a bank guarantee. Agree this wording with the landlord before it goes to the bank; many banks will insist on their own printed form, and then this format is the checklist to compare their form against. The guarantee is issued and signed by the bank, not by the landlord or the tenant. Not for a guarantee given by a parent company or a director (that is a Corporate Guarantee by a Parent Company, a different document), and not for a performance bond on building or fit-out work.

Whether you can fill this in here

You can fill this in here

You can fill this one in on this site, and read the whole draft on screen before you decide anything about it. It is a carefully drafted template; it is not advice about your own facts.

Fill this one in

See stamp duty, registration and witnesses

What follows is written for Punjab and Chandigarh. It states the position there rather than describing how it varies, so the amounts below are the ones that apply — worth confirming at the sub-registrar’s office, because rates change. If the property is anywhere else in India, none of this is yours.

Stamp duty

A bank guarantee is an instrument and stamp duty may be payable on it in Punjab and in Chandigarh, but the duty is charged on the bank's form under the Indian Stamp Act, 1899 as it applies in each place, and the figure is not printed in this format. Ask the issuing branch which stamp paper it uses and what duty it pays, and have the figure confirmed with the Collector of Stamps or a licensed stamp vendor. The usual practice is that the bank deals with it and charges the tenant.

Registration

Not required, in Punjab or in Chandigarh. The guarantee does not create or transfer any right in immovable property; it is a promise to pay money.

Notarisation

Not required. The bank's authorised signatory signs with the bank's seal, and the lessor should keep the original safe, because a demand under it ordinarily has to be accompanied by the original.

Witnesses

Not required. The authorised officer signs for the bank under the bank's seal. The lessor may sign the acceptance block to record the date it received the original.

Request Stamp Paper

Sample preview — placeholder answers, not your data

KAAGAZAAT SAMPLE — NOT PURCHASEDKAAGAZAAT SAMPLE — NOT PURCHASEDKAAGAZAAT SAMPLE — NOT PURCHASEDKAAGAZAAT SAMPLE — NOT PURCHASEDKAAGAZAAT SAMPLE — NOT PURCHASEDKAAGAZAAT SAMPLE — NOT PURCHASEDKAAGAZAAT SAMPLE — NOT PURCHASEDKAAGAZAAT SAMPLE — NOT PURCHASEDKAAGAZAAT SAMPLE — NOT PURCHASEDKAAGAZAAT SAMPLE — NOT PURCHASEDKAAGAZAAT SAMPLE — NOT PURCHASEDKAAGAZAAT SAMPLE — NOT PURCHASEDKAAGAZAAT SAMPLE — NOT PURCHASEDKAAGAZAAT SAMPLE — NOT PURCHASEDKAAGAZAAT SAMPLE — NOT PURCHASEDKAAGAZAAT SAMPLE — NOT PURCHASEDKAAGAZAAT SAMPLE — NOT PURCHASEDKAAGAZAAT SAMPLE — NOT PURCHASEDKAAGAZAAT SAMPLE — NOT PURCHASEDKAAGAZAAT SAMPLE — NOT PURCHASEDKAAGAZAAT SAMPLE — NOT PURCHASEDKAAGAZAAT SAMPLE — NOT PURCHASEDKAAGAZAAT SAMPLE — NOT PURCHASEDKAAGAZAAT SAMPLE — NOT PURCHASED

BANK GUARANTEE FOR SECURITY DEPOSIT

Bank Guarantee No. BG/CHD/2026/0412
Date: 1 April 2026
Place: Chandigarh

To,
Harpreet Singh Gill, of House 14, Sector 8, Chandigarh (the "Lessor")

WHEREAS

A. By Lease Deed dated 4 April 2022 (the "Lease"), the Lessor has let Ground-floor showroom at SCO 42, Sector 34-A, Chandigarh 160022 (the "Premises") to Northline Retail Private Limited, of SCO 42, Sector 34-A, Chandigarh 160022 (the "Lessee").

B. The Lease requires the Lessee to give the Lessor a security deposit of ₹11,10,000 (Rupees Eleven Lakh Ten Thousand only). The Lessor has agreed to accept a bank guarantee in place of that deposit, and has asked the undersigned bank to give this guarantee at the request of the Lessee.

NOW THEREFORE State Bank of India, acting through its branch at Sector 17, Chandigarh 160017 (the "Bank"), gives this guarantee on the following terms.

1. THE GUARANTEE

1.1 The Bank irrevocably and unconditionally guarantees to pay the Lessor, on the Lessor's written demand, any sum or sums up to a total of ₹11,10,000 (Rupees Eleven Lakh Ten Thousand only) (the "Guaranteed Amount") that the Lessor says the Lessee has failed to pay under the Lease.

1.2 A demand may be made once or several times, and for the whole or part of the Guaranteed Amount. Each amount paid reduces the Guaranteed Amount by that sum.

2. PAYMENT ON DEMAND

2.1 The Bank shall pay the amount demanded within 7 days of receiving the Lessor's written demand at the Bank's branch named above, without asking the Lessor for proof, reasons or any document beyond the demand itself and the original of this guarantee.

2.2 The Bank shall not delay or refuse payment because the Lessee disputes the Lessor's claim, has started or threatens any proceeding, or has asked the Bank not to pay. Any dispute between the Lessor and the Lessee is for them to settle between themselves and does not affect the Bank's duty to pay.

2.3 The Lessor need not first proceed against the Lessee, or against any other security or deposit it holds, before making a demand on the Bank.

3. VALIDITY AND CLAIM PERIOD

3.1 This guarantee is valid from the date above until 2 April 2026 (the "Expiry Date").

3.2 A demand received at the Bank's branch on or before the Expiry Date, or within 90 days after it (the "Claim Period"), must be paid under clause 2. After the Claim Period ends, the Bank is released from this guarantee, whether or not the original has been returned.

3.3 The Lessee must have this guarantee extended or replaced at least thirty days before the Expiry Date for as long as the Lease continues. If it has not been, the Lessor may, before the Expiry Date, demand the whole of the Guaranteed Amount, and the Bank shall pay it under clause 2 to be held by the Lessor as a cash security deposit under the Lease.

Questions about this document

Does the Security Deposit Bank Guarantee Format need stamp paper or stamp duty in Punjab and Chandigarh?

See the full position on stamp duty, registration and witnesses

Does the Security Deposit Bank Guarantee Format need registration in Punjab and Chandigarh?

Not required, in Punjab or in Chandigarh.

See the full position on stamp duty, registration and witnesses

What does the Security Deposit Bank Guarantee Format cost on Kaagazaat?

Free, always.

Does the Security Deposit Bank Guarantee Format need witnesses?

Not required.

See the full position on stamp duty, registration and witnesses

Often needed with this document

Back to Commercial, retail and industrial leasing