The Letter of Guarantee for Loan is a crucial financial instrument in Saudi Arabia's banking system, used when a third party requires security for a loan or financial obligation. This document, strictly governed by Saudi Arabian law and Sharia principles, represents a bank's irrevocable commitment to pay a specified sum to a beneficiary if the principal debtor fails to meet their obligations. The guarantee must be structured to comply with Islamic finance principles, particularly avoiding interest (riba) and excessive uncertainty (gharar). It typically includes details of all parties involved, the guaranteed amount, validity period, conditions for calling on the guarantee, and specific provisions for enforcement under Saudi law. The document is essential in various commercial transactions, from project financing to trade finance, and must be issued by banks licensed by the Saudi Arabian Monetary Authority (SAMA).
Your data doesn't train Genie's AI
You keep IP ownership of your information
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
OR
Let Ƶ's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.
1. Letter Header and Date: Bank's letterhead, reference number, and date of issuance
2. Addressee Details: Complete details of the beneficiary (lender) including name, address, and reference numbers
3. Subject Line: Clear identification as a Letter of Guarantee for Loan
4. Guarantee Declaration: Clear and unequivocal statement of guarantee, including the guaranteed amount and the principal debtor's details
5. Scope of Guarantee: Specific details of what is being guaranteed, including the underlying loan agreement reference
6. Duration and Validity: Clear statement of the guarantee period and expiry conditions
7. Payment Terms: Conditions and process for calling on the guarantee, ensuring Sharia compliance
8. Governing Law Statement: Reference to Saudi law and Sharia principles as governing law
9. Authorization Statement: Confirmation of the bank's authority to issue the guarantee and signatories' authority
10. Signature Block: Authorized signatures, bank stamp, and authentication details
1. Counter-Guarantee Reference: Required when the guarantee is issued based on a counter-guarantee from another bank
2. Claim Procedures: Detailed procedures for making claims, included when requested by the beneficiary or for complex transactions
3. Force Majeure Clause: Include when specifically requested or for long-term guarantees
4. Language Provision: Required when the guarantee is issued in multiple languages
5. Assignment Restrictions: Include when transfer or assignment of the guarantee needs to be specifically restricted
1. Copy of Underlying Loan Agreement: Reference copy of the main loan agreement being guaranteed
2. Authentication Documents: Copies of necessary authentication or notarization certificates
3. Bank Authorization Documents: Evidence of the bank's authority and signatory powers
4. Specimen Claim Form: Standard form for making claims under the guarantee when required
Relevant legal definitions
Clauses
Relevant Industries
Banking & Financial Services
Islamic Finance
Construction & Infrastructure
Real Estate
Manufacturing
Trading & Commerce
Oil & Gas
Healthcare
Transportation & Logistics
Retail
Telecommunications
Relevant Teams
Legal
Finance
Treasury
Compliance
Risk Management
Corporate Banking
Islamic Banking
Credit Administration
Trade Finance
Operations
Relevant Roles
Chief Financial Officer
Finance Manager
Treasury Manager
Bank Relationship Manager
Credit Risk Officer
Legal Counsel
Compliance Officer
Islamic Finance Specialist
Corporate Banking Officer
Trade Finance Manager
Project Finance Manager
Senior Credit Analyst
Banking Operations Manager
Commercial Director
Financial Controller
Find the exact document you need
Foreign Bank Guarantee
A Shariah-compliant bank guarantee issued by a foreign bank under Saudi Arabian law, securing obligations to a Saudi beneficiary.
Download
Bank Guarantee Confirmation Letter
A Saudi Arabian banking document confirming the validity and enforceability of a bank guarantee, issued under Saudi law and SAMA regulations.
Download
Bank Guarantee Return Letter
A formal request document used in Saudi Arabia to obtain the return of a bank guarantee from a financial institution after fulfillment of underlying obligations.
Download
International Bank Guarantee
Template for International Bank Guarantees under Saudi Arabian law, compliant with SAMA regulations and Shariah principles.
Download
Cheque Guarantee Letter
A bank-issued guarantee document under Saudi Arabian law that ensures payment of specified cheque(s) to a beneficiary, subject to Saudi banking regulations and Shariah compliance.
Download
Bank Guarantee For Purchase Of Goods
A Shariah-compliant bank guarantee under Saudi Arabian law securing payment obligations for goods purchase, providing financial security to sellers against buyer default.
Download
Letter Of Guarantee For Loan
A Sharia-compliant bank guarantee document under Saudi Arabian law that ensures payment to a beneficiary in case of default by a principal debtor.
Download
Commercial Standby Letter Of Credit
A Saudi Arabian banking instrument providing financial guarantee in commercial transactions, governed by SAMA regulations and international banking practices.
Download
Guarantee Cheque Against Advance Payment
A Saudi Arabian law-governed document establishing terms for a guarantee cheque provided as security against an advance payment, including enforcement rights and banking regulations compliance.
Download
Bank Transfer Guarantee
A Saudi Arabian banking instrument where a bank guarantees payment to a beneficiary under specified conditions, compliant with Islamic banking principles and local regulations.
Download
Corporate Guarantee And Bank Guarantee
Template for Corporate and Bank Guarantees under Saudi Arabian law, compliant with Shariah principles and SAMA regulations.
Download
Business Bank Guarantee
A Saudi Arabian law-governed bank guarantee document providing financial security from a bank to a beneficiary, complying with SAMA regulations and Shariah principles.
Download
Open Bank Guarantee
A Saudi Arabian law-governed bank guarantee document establishing an unconditional payment obligation from a bank to a beneficiary, compliant with Islamic finance principles.
Download
Bank Guarantee And Performance Guarantee
A Sharia-compliant bank and performance guarantee document under Saudi Arabian law, providing financial security and performance assurance in commercial transactions.
Download
Personal Banker's Guarantee
A Sharia-compliant banker's guarantee document under Saudi Arabian law, representing a bank's commitment to pay a specified sum on behalf of a principal debtor.
Download
Letter Of Credit Guarantee
A Saudi Arabian banking instrument guaranteeing payment under a Letter of Credit, compliant with local laws and Shariah principles.
Download
Government Deposit Guarantee
A Saudi Arabian law-governed agreement establishing government guarantees for deposits in licensed financial institutions, incorporating both conventional and Islamic banking principles.
Download
Original Bank Guarantee
A Shariah-compliant bank guarantee document under Saudi Arabian law, providing financial security through an irrevocable undertaking from a bank to pay a specified sum upon demand.
Download
Performance Guarantee In Tender
A bank-issued guarantee document under Saudi Arabian law that secures a bidder's obligations in a tender process.
Download
Construction Bank Guarantee
A Sharia-compliant bank guarantee document under Saudi Arabian law that secures construction project obligations through a bank's financial commitment.
Download
Bank Guarantee Renewal Letter
A formal letter issued under Saudi Arabian law to extend the validity period of an existing bank guarantee, complying with both SAMA requirements and Shariah principles.
Download
Down Payment Bank Guarantee
A Saudi Arabian bank guarantee securing the repayment of advance payments in commercial transactions, issued under SAMA regulations and Shariah law.
Download
Financial Bank Guarantee
A Shariah-compliant bank guarantee document under Saudi Arabian law where a bank guarantees payment to a beneficiary upon specified conditions.
Download
Indirect Bank Guarantee
Template for Indirect Bank Guarantee under Saudi Arabian law, compliant with SAMA regulations and Sharia principles, for use in international trade and commercial transactions.
Download
Bank Guarantee For Deposit
A Saudi Arabian law-governed bank guarantee document where a bank guarantees payment of a deposit amount to a beneficiary, complying with SAMA regulations and Sharia principles.
Download
Standby Letter Of Credit For Lease
A Saudi Arabian banking instrument that provides landlords with a Shariah-compliant guarantee for lease payments, ensuring financial security in case of tenant default.
Download
Bank To Bank Guarantee
A Saudi Arabian-compliant financial instrument where one bank guarantees obligations to another bank, incorporating SAMA regulations and Shariah principles.
Download
Bank Guarantee First Demand
A Sharia-compliant First Demand Bank Guarantee under Saudi Arabian law, providing immediate payment upon valid demand without proof of default.
Download
Advance Bank Guarantee
A Shariah-compliant bank guarantee document under Saudi Arabian law, securing advance payments in commercial contracts through a bank's unconditional payment undertaking.
Download
Unlimited Bank Guarantee
A Shariah-compliant unlimited bank guarantee under Saudi Arabian law, providing unconditional security for commercial obligations without monetary limit.
Download
Standby Bank Guarantee
A Saudi law-compliant bank guarantee document representing a bank's irrevocable commitment to pay a specified sum upon demand, structured according to SAMA regulations and Sharia principles.
Download
Financial Guarantee And Performance Guarantee
A Saudi Arabian law-governed document combining financial and performance guarantees, ensuring both monetary and operational obligations while maintaining Shariah compliance.
Download
Bank Guarantee For Tender
A Saudi Arabia-governed bank guarantee document where a bank guarantees payment to a beneficiary if a tender participant fails to meet their tender obligations, compliant with Saudi law and Sharia principles.
Download
Non Financial Guarantee
A Saudi Arabian law-governed guarantee agreement ensuring the non-financial obligations or performance of one party to another, structured in compliance with Sharia principles.
Download
Digital Bank Guarantee
A digitally-issued bank guarantee under Saudi Arabian law, providing financial security through electronic channels while maintaining Shariah compliance.
Download
Drawdown Bank Guarantee
A Sharia-compliant Drawdown Bank Guarantee template under Saudi Arabian law, establishing terms for bank guarantees and drawdown mechanisms in accordance with SAMA regulations.
Download
Bank Guarantee Irrevocable
A Saudi Arabian law-governed irrevocable bank guarantee document providing unconditional payment undertaking from a bank to a beneficiary, compliant with SAMA regulations and Sharia principles.
Download
Bank Guarantee Letter Of Credit
A Shariah-compliant bank guarantee letter of credit document under Saudi Arabian law, providing secure payment commitment in international trade transactions.
Download
Trade Finance Bank Guarantee
A Sharia-compliant bank guarantee document under Saudi Arabian law that secures payment or performance obligations in international trade transactions.
Download
Bank Assurance Letter
A Saudi Arabian bank-issued guarantee document that provides financial assurance to a beneficiary under SAMA regulations and Shariah law.
Download
ұԾ’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; ұԾ’s AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it
.png)