Some contracts are awarded through bidding processes. In such bids, participants are demanded to deposit an earnest money or to submit a guarantee letter issued by a bank, which will be used by beneficiary as a security in case of withdrawal by participants when contract is awarded to the participant. Such guarantee is called a bid bond. Such contracts are generally 2-5% of the bidding value as per the requirement of the beneficiary. For issuance of bid bonds, customers need credit line from the bank.