Give Me a Bank Guarantee and I Will Try for Your H-1B Ticket to the US

by Vinaya HS on February 16, 2007

in Business & Management

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At times I think it’s a BIG mistake to upload your resume on job portals. It’s a BIGGER mistake to give out your primary email address on the resume that you upload. Within a very short span of time, your inbox is flooded with opportunities you are least interested in. But once in a while you do come across a gem.

What follows is an excerpt from one such e-mail I received from Infotech Global India (IGI) Limited. My comments as usual are interspersed.

We are in the process of filing H1 for skilled professionals in various technologies for our numerous ongoing and upcoming projects to be based at US. ALL H1 RELATED EXPENSES TO BE TAKEN CARE BY INFOTECH GLOBAL INDIA LTD. ABSOLUTELY NO EXPENSE BY THE CANDIDATE. NO HIDDEN COST.

[You'll soon find out how twisted "hidden" can mean.]

Openings in technologies viz. JAVA related, Oracle Financials, Sybase DBA, Visual Basic, ASP.NET, Oracle, PL/SQL, etc. with strong communication skills, impressive personality, confidence and stability.

[Wow! That's a new one. Bad grammar aside, how do you measure one's stability? Do you have any ideas?]

Candidates have to go through following rounds (in case CV get shortlisted by Technical team and Visa processing team): HR Round, Technical Round, Aptitude Test.

In case you are selected after ENTIRE process you have to produce Bank Guarantee (on Rs. 100 Stamp Paper duly signed by Bank Manager) of Rs. 1 Lakh subject to following two conditions:

1. Should not back out after filing H1B
2. Should not leave us before 1 year working with us in USA

[There you go. Hidden costs (read "Bonded Labor") just uncovered. Plus, if you don't trust me, why should I trust you?]

Infotech Global (India) Ltd would be willing to refund the amount in full of the Bank Guarantee in case the H1 visa of the Consultant gets rejected after filing H1 with USCIS (United States Citizenship and Immigration Services).

[No processing fee or service charges deducted? Surprising!]

We are not asking for any money from your side. [Hello? Do you even read what you send? Remember? 1 lac? Bank guarantee signed personally by the bank manager?] This money will remain in your own account and your bank will take your guarantee that you”ll not back out from your commitment to IGI, once IGI initiates the process of your H1B.

My head is spinning.

Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.

{ 9 comments… read them below or add one }

Shalini March 1, 2007 at 6:11 AM

If you are being sarcastic purely for the fun of it, at least get your facts straight. I don’t expect you to know this, but it does actually cost a pretty penny to file for an H1-B visa.

There has been a significant increase in filing fee for H1B applications. Previously eliminated Training fee of $1000 has beeen reinstated with an increase of $500. So each new H1B filing the employer should pay $1500 as training fee. There is also a $500 Fraud Prevention and Detection fee that will be paid for initial H1B and L-1 petitions and for change-of-status petitions.

The minimum cost for each H1B filing for an US employer to sponsor an H1B will be around $3000 [$185 (USCIS application fee) $1500 (Training fee) $500 (Fraud Prevention fee) $750 (Attorney fee).

When looking for talent in India, you often come across people who are not capable of meeting that cost, but are motivated and qualified enough to have a shot at a great career in the US. The bank guarantee is a way out for both the employer who is willing to sponsor that employee’s visa and the employee who does not have to spend that insanely high amount to get a visa. The bank guarantee does not involve an actual exchange of money on anyone’s part.

According to the banking dictionary,

” … A bank guarantee is a guarantee made by a bank on behalf of a customer should it fail to deliver the payment, essentially making the bank a co-signer for one of its customer’s purchases. Should the bank accept that its customer has sufficient funds or credit to authorize the guarantee, it will approve it. A guarantee is a written contract stating that in the event of the borrower being unable or unwilling to pay the debt with a merchant, the bank will act as a guarantor and pay its client’s debt to the merchant.

The initial claim is still settled primarily against the bank’s client, and not the bank itself. Should the client default, then the bank agrees in the bank guarantee to pay for its client’s debts. This is a type of contingent guarantee. A bank guarantee is more risky for the merchant and less risky for the bank. But this is not the case with a letter of credit. ”

As far as bonded labor is concerned, give me an example of an employer willing to invest time, resources and money into an employee’s future, sight unseen. Sure, you make money on the person once he gets here, but then it is a business not a charity.

Ankur March 18, 2007 at 10:50 AM

Yaa i truly agree with Shlinis comments…!!

Vinay December 9, 2007 at 9:14 PM

IGI is not trusted company…Pls dont join it…

Anonymous January 30, 2008 at 11:00 AM

IGI is really not a good company.

Mike Kelley March 5, 2008 at 1:36 PM

There is a great collection of videos on “How to write a CV or resume on this page
The site has impressive CV examples that can be found on the home page
with templates to download. UK CVs and the US Resume are mostly the same and advice is interchangable – (The US CV – Curriculum Vitae is a different format),

Personally I wish more people in the UK will take the advice from the US resume format it will solve a lot of job search and self marketing problems people

have in the UK.

the one March 17, 2008 at 8:37 PM

i know this h1b has a lot of loop holes just ensure bank guarantee is in the name of the company not any individual of that company

Vinayak May 19, 2008 at 2:41 PM

I have selected and got electronic letter from the company and i have produced bank guarantee letter for 1 Lac.But they did not submitted my papers in USCIS and they returned my bank guarantee letter too, but i lost one year. do you think can i take any kind of actions..


shahid June 2, 2008 at 6:08 PM

i need h1 b visa to work as oracle(pl/sql) programmer

coolntv July 31, 2008 at 12:09 PM

i have gone through a similar process &i have made a bank gaurentee.
Also i have got my H1b visa in jan2008.this is aug 2008 aprrox 7 months
since i recieved my h1b but my employer has suddenly been unvailable to get me onboard to USA.All my calls to the company has not yeilded any response.Please advice me what i shoud do?
i saw one similar case on web where another person has had a similar issue & was advised to take a flight on his own & payfor flight on his own and take advantage of thisloophole by working foranother company & show as being underpaid and take advantage of this?please advise ASAP?
thank you

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