Quarters are billed whole
Because banks charge for any part of a started quarter, timing a guarantee's start and end dates to avoid spilling into an extra quarter can meaningfully cut the commission on shorter-tenure instruments.
Frequently asked questions
Why is commission charged per quarter?
Bangladeshi banks typically bill guarantee and LC commission for each commenced quarter (three-month block) of the tenure, not prorated by the day — so an 8-month guarantee is usually billed as 3 quarters, not 8/3 of one.
What is the stamp duty for?
A fixed government duty on the guarantee or LC instrument itself, set by the relevant Stamp Act schedule based on the instrument value — it doesn't scale the same way as the bank's own commission, so it's entered directly rather than as a percentage here.
What does "annualized cost" tell me?
It restates the total cost as if it applied for a full year, which makes it easier to compare a short-tenure guarantee against a long-tenure one, or against a straightforward loan's interest rate.
Last updated: June 2026