Bank Guarantee Format For Security Deposit: Fill & Download for Free

EMD ( Earnest money deposit) and Security both come into picture while quoting for a tender (for both private and govt. departments).Earnest money deposit : To ensure that a Bidder does not submit a Dummy Bid or back out at time of tender opening, Department collects a small refundable fee from each bidder, which is called EMD. EMD is always in form of a Demand Draft & cheques or cash are strictly not allowed. EMD is returned when all Bids are opened & tender is awarded to other firm. In case Tender is cancelled, the EMD is returned. in case, your firm is the winning bidder, the said EMD shall be returned to you only after you complete the supply or you make a security deposit. After Bid is opened, if a Bidders refuses to take the contract, then his EMD is forfeited. EMD is generally less than 5% of the Tender Value.Security Deposit: Once it is decided that a Tender is awarded to a Bidder, he has to deposit a Security Deposit with the Buyers such that if he does not complete the task as per the work order, the Buyer can recover the loss by forfeitting his Security Deposit. For e.g. If a Bidders gets Rs.10 Cr contract to construct a Bridge withing 12 months , than he has to deposit a Security deposit of 10% i.e. 1 Cr with Buyers. Now if he does not complete the bridge on time or leaves it incomplete, the Department can forfeit his 1 Cr as penalty.Security Deposit can be in form of Bank Guarantee, National Saving certificates, Cash, etc. Only when the Winning Bidders makes the Security Deposit, he gets his EMD Back.Such conditions vary from tender to tender. In many tenders the clause of security deposit is not there in which the winning bidder is refunded the EMD only after completing the project supply.

Recently it was changed, Now it's 1 lakh per annum tuition fees.Hostel fee is 1800/annum.Mess fee is college dependant.Security deposit for college fee 5000. Hostel security deposit 10000.Some places take mess security deposit.Update:- Bank guarantee of 7.5 lacs is being taken from students. Please read terms and conditions before you agree.

So why do landlords ask for a security deposit? If you understand this you will know the secret of how to reduce the deposit.The two main reasons are -nonpayment of rentDamage to propertygive the land lord an assurance that your rent payments will come on time (e.g. if you work in an MNC you can share the date of salary credit and assure an ecs the next day)You could also share testimony of your previous landlord that you had maintained the house wellIt is a misnomer that landlords want to earn interest off your deposit. They would rather have tenants who give rent on time and take care of the property.Note - if you want to earn the interest on the deposit amount you can keep it in an fd and give the land lord a bank guarantee. Finally it’s upto your negotiation skills.