Stands in for your EMD
The insurer's guarantee substitutes for the cash you'd otherwise deposit with the tendering authority.
Bid Bond · BB-01
Win tenders without locking up capital
Replaces your Earnest Money Deposit with an IRDAI-backed guarantee - so cash stays free to bid on more tenders at once.
0%
Cash margin for A+ credit profile
5–7 days
First-time issuance
0.5–3%
Annual premium
100+
Central Government procuring entities under GFR
At a glance
What this bid bond actually does
You pay premium, not principal
0.5–3% p.a. of bond value - no cash sits locked with the department while you wait on results.
Zero margin for strong credit
Contractors rated BBB+ or above typically qualify with nil cash collateral from Assurety.
How it works
The bond lifecycle
A clear path from the security requirement to release or claim.
Tender opens
You identify a tender requiring bid security / EMD.
Bond issued
Assurety issues a tender-specific bond - 5–7 days first time, 24–48 hrs for repeat clients.
Bid submitted
Bond replaces cash EMD, freeing you to bid on other tenders in parallel.
Outcome
Unsuccessful: bond auto-releases at bid validity end. Successful: converts to a performance bond.
No claim, no costThe real comparison
Bid Bond vs. bank guarantee
Look beyond headline commission to the capital impact, speed and effective cost.
| Metric | Bid Bond (Assurety) | Bank Guarantee / Cash EMD |
|---|---|---|
| Cash blocked | 0% for A+ credit profile | ~100% of bond value, usually as FD |
| Headline cost | 0.5–3% p.a. premium | 0.25–0.75% p.a. commission |
| Effective cost | Premium only - no opportunity cost | 8–10% once blocked collateral is factored in |
| Bidding on parallel tenders | Yes - capital isn't tied up | Limited by available cash/collateral |
| Regulatory standing | At par with bank guarantees - GFR Rule 170 (MoF OM, Feb 2022) | Traditional default instrument |
Cash blocked
Bid Bond (Assurety)
0% for A+ credit profile
Bank Guarantee / Cash EMD
~100% of bond value, usually as FD
Headline cost
Bid Bond (Assurety)
0.5–3% p.a. premium
Bank Guarantee / Cash EMD
0.25–0.75% p.a. commission
Effective cost
Bid Bond (Assurety)
Premium only - no opportunity cost
Bank Guarantee / Cash EMD
8–10% once blocked collateral is factored in
Bidding on parallel tenders
Bid Bond (Assurety)
Yes - capital isn't tied up
Bank Guarantee / Cash EMD
Limited by available cash/collateral
Regulatory standing
Bid Bond (Assurety)
At par with bank guarantees - GFR Rule 170 (MoF OM, Feb 2022)
Bank Guarantee / Cash EMD
Traditional default instrument
Bank guarantee commission looks cheap on paper - the real cost shows up in blocked collateral sitting idle instead of funding operations.
Why Assurety
Built for how the requirement actually moves.
Fast issuance
Most first-time applications are issued in 5–7 working days with complete documents.
Zero margin, qualifying credit
BBB+ and above often need no cash margin at all.
Tender-specific wording
Obligee name, project reference and validity matched exactly to your tender.
Seamless conversion
Winning bid bonds convert to performance bonds by amendment - no fresh underwriting in most cases.
Multi-tender support
Run several bid bonds at once across different tenders.
Tender document review
We confirm the exact accepted bond format before issuance.
Adoption
Accepted at meaningful scale.
3,300+
Surety bonds issued in India (industry estimate)
₹29,000 Cr+
Estimated value issued in India
₹10,000+ Cr
Issued via NHAI alone
GeM GTC 4.0
Recognized as Bid Security (v1.28, Dec 2025)
Government and private project owners can be obligees, subject to applicable procurement rules and contractual terms. We confirm the accepted format for each tender before issuance.
Industries
Where this bond gets used.
Eligibility
What you need to qualify.
Underwriting considers the business, its credit position and the underlying obligation.
Requirement 01
Entity type
Pvt Ltd, Public Ltd, LLP, partnership or proprietorship
Requirement 02
Credit check
Corporate CIBIL mandatory; rating drives terms
Requirement 03
Tenure
Bonds available up to 7 years
Requirement 04
Not a substitute for
Loan repayment or financial guarantees
Regulated placement
Bonds are arranged only through IRDAI-licensed insurers approved for surety business. The issuing insurer is confirmed before placement.
FAQ
Questions, answered.
Get a bid bond for your next tender
Tell us about your requirement and we'll have an indicative quote ready promptly.
