⭐ How to Extend a Bank Guarantee (Complete process )

1️⃣ Beneficiary Requests Extension (If Applicable)

Sometimes the beneficiary (the party in whose favour BG is issued) will ask for extension.
They send a formal extension request letter to the applicant (your company).

2️⃣ Applicant Requests Their Bank to Extend the BG

You (the BG applicant) must submit the following details to your bank:

⭐ Documents required

👉 Request Letter for Extension (on company letterhead)

👉 Copy of Original Bank Guarantee
👉Beneficiary request or PO/Contract extension (if required)
👉 Board Resolution (for companies, if required)
👉 Revised expiry date / validity period
👉 Additional margin/security if bank asks
👉Renewal charges / commissions

3️⃣ Bank Reviews the Request

The issuing bank will:
👉 Check your credit limit or BG limit
👉If FD against BG Bank will add additional margin if required
👉 Verify the underlying contract
👉Evaluate your account conduct
👉Check your KYC, financials (if extension is long)
👉 Confirm from beneficiary (sometimes)

4️⃣ Bank Prepares the Amendment / Extension Draft

The bank prepares:

🔹 BG Amendment Letter / Extension Letter

⭐It will include:

👉New expiry date

👉New claim period

👉Any revised terms (if needed)

👉The draft is usually shared with:

👉You (the applicant)

⭐Beneficiary (optional, depends on contract)

5️⃣ Applicant Approves the Draft

You verify:

👉 Name
👉 BG reference number
👉 New validity date
👉 Stamp duty/charges
👉Contract details

Then give written approval to the bank

6️⃣ Bank Issues the Extension / Amendment
Bank sends the BG Amendment Letter to the beneficiary:
Mode of dispatch
SWIFT (for international BG)
Registered post / speed post
Email + physical copy
Through branch courier

7️⃣ Beneficiary Acknowledges the Extension

The beneficiary confirms:
👉 Receipt of BG extension
👉Acceptance of revised terms

8️⃣ Bank Updates Its Internal Records

Bank will:
👉 Update the BG register
👉Charge commission & GST
👉Mark new expiry in its system
👉File amendment copy

You Receive Confirmation
Bank gives you:

👉 Amendment copy
👉Commission invoice
👉Confirmation email

⭐ How to process for extended BG

👉Beneficiary asks for extension → You request bank

👉Submit request letter + documents

👉Bank checks credit limit & terms

👉Bank prepares amendment draft

👉You approve

👉Bank send extended BG to Beneficiary

👉Beneficiary acknowledges

👉 Bank updates records

👉You receive confirmation