Get your surety bond at 1–3% a year. We handle everything else.

For government procurement, yes. The Ministry of Finance amended the General Financial Rules in 2022 so that Insurance Surety Bonds are acceptable as bid security and performance security, on par with a bank guarantee. They are IRDAI-regulated, over 300 government departments accept them, and industry estimates for 2026 put usage at more than ₹29,000 crore across 3,300+ bonds. The tender document still has the final word, so we read your security clause before you commit.

Six things, not one. Commission charged per quarter on the guarantee amount, GST at 18% on that commission, a processing and documentation charge when the limit is sanctioned, stamp duty at your state rate, the cash margin the bank keeps — commonly 25% on a first guarantee, and up to 50% if your firm is unrated — and the interest cost of that margin, because it is either your own money doing nothing or drawn from your CC limit. The calculator above adds all of it up for your numbers. There is a seventh cost nobody puts in the sanction letter: after the work is over, getting the BG released and your margin refunded usually takes weeks of follow-up at the branch. A surety bond simply expires on its date.

Not always on the fee alone — bid bond premiums run 0.25–2% a year and performance bonds 1–3%, against BG commission of roughly 0.5–1.5%. The decisive difference is what gets locked: a first bank guarantee blocks 25% margin — up to 50% if you are unrated — or the full amount in cash, plus your bank limit, while a surety bond blocks little or nothing. The calculator above shows both totals honestly — including the cases where a bank guarantee works out cheaper upfront.

Because banks bill guarantee commission quarterly, and a part quarter counts as a full quarter. Published schedules of Indian public sector banks quote rates like 0.25% to 0.75% per quarter, split by rating and by whether the guarantee is financial or performance. Multiply by four to get the annual number before you compare anything — 0.75% a quarter is 3% a year.

No property or hard collateral. Bid bonds (EMD) need zero margin. A performance bond can carry a small FD margin on your first bond — around 10% if your firm is unrated, and nil once you are rated or have a track record with the insurer — still far below what a bank asks. The insurer underwrites your financials, order book and track record, and takes an indemnity from the company (often from promoters too), not a mortgage or a lien on your deposits.

The department claims on the bond, the insurer pays up to the bond amount, and then recovers that amount from you under the indemnity. This is the same outcome as a BG, where your bank pays and debits your account. A surety bond lowers the cash you block; it does not remove your liability.

Yes. Two to three years of filed financials, positive net worth and a clean credit record matter more than turnover size. Smaller or first-time cases usually start with a lower bond limit and a slightly higher premium, then improve as you build a record.

Usually 5–7 days from the day we have your papers. A first application takes the longest, mostly waiting on audited financials or an order-book summary. Once your file is with the insurer, a repeat bond can come back in 48–72 hours.

For a first bond: PAN and GST of the firm, the last two to three years of financials with ITR, six to twelve months of bank statements, and the tender document or NIT so we can match the bond wording to what the department demands. Photos on WhatsApp are fine — nothing has to be printed, signed or couriered to start. Repeat bonds usually need nothing beyond the new tender document, because your file is already with the insurer.

Yes. Extensions and renewals are done as an endorsement by the insurer at a pro-rata premium. We track expiry dates for every bond we place and come to you before the deadline, so a bid or contract is never left uncovered.

The bond is issued by an IRDAI-licensed general insurance company, not by Tenderkart. We are a technology and consulting service — not an insurer and not an insurance broker. We take your file to the insurers writing surety business in India, compare what each one quotes, and bring you the best premium along with the bond format your NIT needs. Reading your security clause and getting you quotes costs you nothing; you pay the insurer premium only when you accept a quote.