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Who Can Give Corporate Guarantee In India?

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In the ever-changing world of business, companies are constantly looking for ways to grow and expand. Corporate guarantees are one way to do this. They are a type of financial instrument that helps businesses get loans and build credibility with lenders. Knowing who can offer corporate guarantees is important for financial institutions and businesses in the Indian business environment. Corporate Guarantees: About Corporate guarantees serve as a means for companies to vouch for the financial obligations of another entity. In essence, a corporate guarantee acts as a commitment from one company to cover the debt or default of another, providing a level of assurance to lenders. This financial mechanism facilitates smoother access to credit and fosters collaboration between businesses. Corporate Guarantees: Eligible Entities In India, corporations play a pivotal role in the economic landscape, and they are primary contenders for issuing corporate guarantees. Public and private limited compa...