Bank of Baroda

Bank of Baroda Business Loan

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Apply Bank of Baroda Business Loan

About Bank of Baroda

Bank of Baroda is one of the highly-rated banks in India. Bank of Baroda (BOB), founded on 20th July 1908 by the Maharaja of Baroda, Sayajirao Gaekwad was among the first lot of banks to be nationalised on 19th July 1969. Today, it is the second-largest bank in India. With the merger of Vijaya Bank and Dena Bank with Bank of Baroda on 01st April 2019, it has expanded its overall network to more than 9500 branches. Its entire business has crossed 15 trillion, thereby making it India's third-largest lender. Bank of Baroda has more than a hundred overseas branches and hence is known as India's international bank.

Bank of Baroda offers an impressive range of loans to all sections of society. It focuses a lot on business finance, whereby it provides various credit facilities to Micro, Small & Medium Enterprises (MSMEs) and corporate entities. On its own, it caters to more than 120 million customers in more than 22 countries. With the merger, the customer base of the bank has increased manifold.

Why Choose Bank of Baroda Business Loan?

As Bank of Baroda is a nationalised bank, it offers all the Government schemes such as Prime Minister Mudra Yojana and loans under the Stand-Up India programme and CGTMSE guarantee. It is also one of the member lending institutions that offer PSB loans in 59 minutes. Bank of Baroda offers attractive and competitive rates of interest on its Business Loans. It follows a transparent procedure, thereby making it easy for business enterprises to apply for Bank of Baroda Business Loan.

Bank of Baroda Business Loan - Features and Benefits

  • Business Loans are available to all sectors such as manufacturing, services sectors, traders, and exporters.
  • Collateral free loans are available up to 2 Crores to the manufacturing and service sectors under the CGTMSE scheme.
  • Loans are available under all Government-sponsored schemes
  • Subsidy-based loans available
  • Attractive rates of interest linked to the Marginal Cost of Funds based Lending Rate (MCLR) of the bank.
  • Facility to apply online
  • Easy documentation procedure
  • Reasonable processing fees

Bank of Baroda Business Loan Interest Rates

The rates are dependent on the bank's 1-year MCLR. The MCLR of Bank of Baroda with effect from 07.07.2019 is as follows:

MCLR Benchmark

MCLR %

Overnight

8.20%

One-month MCLR

8.30%

Three-months MCLR

8.40%

Six-months MCLR

8.55%

One year-MCLR

8.60%

Bank of Baroda interest rate on Business Loans depends on various factors:

  • The amount of loan
  • The category of business enterprise such as micro, small, and medium
  • The internal credit rating
  • The value of collateral available to the bank

Bank of Baroda applies the 1-year MCLR plus a strategic premium of 0.25% on all its interest rates before applying the tenor premium.

The interest rate table for Bank of Baroda Business Loans is as follows:

Internal Credit Rating ROI for large and mid-corporate advances ROI for non-regulatory SME/SME Expanded advances

CR - 1 to CR - 6 and below

9.85% to 15.10%

9.85% to 15.10%

The rate of interest for retail loans are different from the ones listed above.

MSME Interest rates for limits less than 25 Lakhs

Limits Micro Enterprises Small Enterprises Medium Enterprises

Up to 50,000

8.85%

9.35%

10.05%

More than 50,000 and up to 2 Lakhs

9.35%

9.55%

10.05%

More than 2 Lakhs and up to 10 Lakhs

9.55%

9.70%

10.05%

More than 10 Lakhs and equal to 25 Lakhs

9.70%

9.85%

10.05%

MSME Loans above 25 Lakhs and up to 5 Crores

Eligible Immovable security coverage CIBIL and CMR rating Micro Enterprises Small Enterprises Medium Enterprises MSME Expanded

100% and above

CMR 1 to 7

8.65% to 11.60%

8.70% to 11.85%

8.75% to 12.10%

8.80% to 12.10%

85% to less than 100%

CMR 1 to 7

8.75% to 11.85%

8.80% to 12.10%

8.85% to 12.35%

8.85% to 12.60%

70% to less than 85%

CMR 1 to 7

8.95% to 13.35%

9.00% to 13.60%

9.05% to 13.85%

9.10% to 14.10%

55% to less than 70%

CMR 1 to 7

9.15% to 15.10%

9.20% to 15.10%

9.25% to 15.10%

9.30% to 15.10%

40% to less than 55%

CMR 1 to 7

9.35% to 15.10%

9.35% to 15.10%

9.35% to 15.10%

9.40% to 15.10%

30% to less than 40%

CMR 1 to 7

9.55% to 15.10%

9.60% to 15.10%

9.65% to 15.10%

9.70% to 15.10%

Less than 30%

CMR 1 to 7

10.00% to 15.10%

10.05% to 15.10%

10.10% to 15.10%

10.15% to 15.10%

MSME Loans above 5 Crores

Rating Micro Enterprises Small Enterprises Medium Enterprises

CR1 to CR6 and below

9.85% to 13.80%

9.95% to 14.05%

10.05% to 14.30%

Interest Rates on SME Products

Name of Product Applicable Rate of Interest

SME Short Term Loan

No specific rate of interest. The general rates of interest listed above apply to these products.

SME Medium Term Loan

Baroda General Credit card

Baroda Laghu Udhyami Credit Card

Baroda Artisans Credit Card

Baroda Weavers Credit Card

Baroda SME Loan Pack

Baroda SME Gold Card

MSME Capex Loan and Capex card

Scheme for financing small road transport operators

Baroda OD against L/B

10.60% to 11.85%

Baroda Vidyasthali Loan

  • Up to 5 Crores: 9.60%
  • Above 5 Crores Up to 10 Crores: 9.85%
  • Above 10 Crores and up to 15 Crores: 10.85%

Baroda Arogyadham Loan

  • Up to 3 Crores: 10.20%
  • Above 3 Crores and up to 10 Crores: 10.60%
  • Above 10 Crores and up to 15 Crores: 11.60%

Baroda Professionals

  • Up to 25 Lakhs: Standard rates apply
  • More than 25 Lakhs and up to 5 Crores: 10.20% to 10.60%

SME finance for new vehicles to existing borrowers

10.35%

Textile Units

10.35% to 10.85%

SME finance for new commercial vehicles

  • Up to 25 Lakhs: Standard rates apply
  • Above 25 Lakhs: 10.85%

Types of Bank of Baroda Business Loans with Eligibility Norms

Bank of Baroda offers a variety of Business Loans to cater to every section of society. The bank provides different facilities to traders, small borrowers under MUDRA scheme, MSME borrowers and corporate entities.

Traders

Benefits

  • Eligible for financial assistance up to 10 Crores
  • Flexibility to avail peak/non-peak season limits to cater to the varying demands of the business.
  • No stipulation of submission of monthly stock statements
  • No condition to calculate Drawing Power based on stock statements or Book debts.

Eligibility

  • Individuals and non-individuals engaged in trading of goods/commodities in physical form are eligible.
  • Dealers in gold and silver jewellery are also eligible
  • Traders dealing in bullion and raw gold are not eligible
  • Public Limited Companies and Hindu Undivided Families are not eligible
  • Resident Indians and Non-resident Indians (NRIs) are eligible
  • Minimum Gross Income:
    • Residents: Average of 3 Lakhs for the last three years
    • Non-Resident Indians: Average of 5 Lakhs for the previous three years

Facility

  • Overdraft: To meet working capital requirements
  • Term Loan: To procure fixed assets, expand the business, and meet other business expenditure.
  • The maximum term loan is 25% of the WC limit
  • Non-fund based facilities: LC and BG

Margin

40% of the realisable value of immovable property

Security

Mortgage of property such as residential property, commercial property, or non-agricultural plot of land.

Loan amount

  • Minimum: 2 Lakhs
  • Maximum:
    • Rural branches: 25 Lakhs
    • Semi-urban branches: 3 Crores
    • Urban branches: 5 Crores
    • Metro branches: 10 Crores

Repayment tenure

  • Overdraft: 12 months with an annual review
  • Term Loan: 120 months

Mudra Loans

Benefits

  • Credit available to micro and small enterprises engaged in some income generation
  • No collateral or processing fees
  • Variety of purposes
  • No minimum amount of loan

Loan amount

  • Shishu Loans: Up to 50,000
  • Kishore Loans: More than 50,000 and up to 5 Lakhs
  • Tarun Loans: Above 5 Lakhs and up to 10 Lakhs

Eligibility

  • All non-farm enterprises under Micro and Small enterprises segment
  • Must be engaged in income-generating activities
  • Credit needs up to 10 Lakhs
  • Allied agriculture activities now allowed under PMMY scheme

MSME Finance

Baroda Vidyasthali Loan - Special product for financing educational institutions

Target group

Educational Institutions

Eligibility

  • All educational institutions including Playschool
  • Hindu Undivided Family (HUF) not eligible for finance
  • Internal Credit rating should be BOB-6

Facility

  • Term loan
  • Overdraft in case of profit-making concerns only

Purpose

  • Construction of school building including renovation, modernisation, and expansion.
  • Purchase of equipment for education or training purposes
  • Acquisition of land is not allowed, but it can be financed if the applicant includes the cost of the land in the project (maximum land value should not be more than 20% of the project cost).
  • Undertaking that the construction will be completed within two years
  • Overdraft facility allowed for meeting short term requirements provided the institution is earning profit and does not have any other bank loan liability.
  • Finance of vehicles is also permitted under Commercial Vehicle Finance product

Loan limit

  • Term Loan: Minimum 25 Lakhs and maximum 15 Crores
  • In the case of select metro cities, the maximum amount is 25 Crores
  • Finance for vehicles: Maximum 2 Crores
  • Overdraft: Maximum 3 Crores subject to a ceiling of 60% of total fee collection.
  • Overdraft limit in Mumbai and Delhi: Maximum 5 Crores
Baroda Arogyadham

Eligibility

  • All MSME units
  • Exclusions: No real estate projects and promoters should not be HUF
  • Condition: At least one promoter/director should have the requisite qualification in any branch of medical science

Purpose

  • Set up or purchase of new clinic or hospital
  • Renovate, modernise, or expand existing hospital or clinic
  • Purchase modern medical diagnostic or office equipment
  • Meet working capital requirements

Facility

  • Demand or Term Loan
  • Overdraft
  • LC or BG

Loan limit

  • Minimum amount is 5 Lakhs
  • The maximum amount depends on the location
    • Rural: 25 Lakhs
    • Semi-urban: 6 Crores
    • Urban: 12 Crores
    • Metro: 30 Crores

Financial ratios

  • Total Term Liabilities/ Tangible Net Worth: 3:1
  • Total Outside Liabilities/ Tangible Net Worth: 4.5:1
  • Average Debt Service Coverage Ratio: 1.75 (Should not go below 1.25 in any year).
  • Operating Profit Margin before interest, depreciation, and taxes should not be less than 10% of sales.
  • Minimum Interest Coverage Ratio: 2
  • Working capital requirements - Current Ratio: Minimum 1

Other conditions

  • Submission of Stock statements/Book debts once a year
  • Individual CIBIL score should not be less than 700
  • For non-individuals: CMR ranking should not be below CMR-6
  • Loans up to 2 Crores are eligible for cover under CGTMSE, hence collateral-free.
  • Internal Credit rating not less than BOB 6
Composite Loans

Eligibility

  • SME (Manufacturing sector) including artisans, village and cottage industries
  • SME (Service sector) engaged in industrial activities

Purpose

  • Working capital requirement
  • Capital Investment such as the purchase of fixed assets for business

Facility

Composite Loans

Loan amount

Up to 1 Crore

Margin

  • Up to 25,000: Nil
  • Greater than 25,000: 15% to 25%

Security

  • Charge on assets created out of the loan
  • Collateral depending on case to case basis

Repayment

  • Minimum of 3 years and maximum of 10 years (extendable)
  • A moratorium of 12 to 18 months
Working Capital Finance

Eligibility

All business units

Purpose

Meet operating expenses, purchase inventory, finance receivables either by direct funding like Bills Discounting or by issuing a letter of credit.

Loan amount

Depends on the working capital requirement

Benefits

  • Funded facilities
  • Non-funded facilities like LC/BG
  • Available in INR and Foreign Currency
Term Finance

Eligibility

All business units

Purpose

  • Capital expenditure
  • Acquire fixed assets
  • Set up or expand business unit
  • Balance transfer of existing facility with another bank or financial institution

Loan amount

Depends on the requirement

Benefits

  • Funded facilities
  • Non-funded facilities like Deferred Payment Guarantee
Small Business Borrowers

Eligibility

Individuals conducting business with or without hired labour

Purpose

  • Purchase equipment for professional use
  • Acquire new business premises or repair existing one
  • Working capital requirement

Conditions

  • Self-employed professionals are eligible
  • Security is in the form of DP note, letter of hypothecation, and mortgage of business premises.
  • The maximum amount for business persons: 5 Lakhs of which working capital finance should not exceed 1 Lakh.
  • The maximum amount for medical practitioners: 10 Lakhs with a working capital limit not more than 2 Lakhs.
Micro, Small, and Medium Enterprises - MSME

Purpose

  • Acquisition of land, construction of factory building
  • Purchase of plant and machinery
  • Meet working capital requirements
  • Additional assistance for meeting urgent needs of raw materials
  • Additional finance for any eligible purpose
Special Schemes and Programmes - Government Sponsored schemes

Technology Upgradation Fund Scheme - TUFS

  • Applicable to the textile industry
  • 5% interest reimbursement
  • 15% Credit Linked Capital Subsidy for small scale sector
  • 20% for the power-loom sector
  • 5% interest reimbursement plus 10% subsidy for specified processing machinery and CAD, CAM, Design Studio
  • 25% capital subsidy on the purchase of new equipment for handloom production units
  • Promoter's contribution should be a minimum of 20% of the project cost
  • Need-based finance

Credit Linked Capital Subsidy Scheme - CLCSS

  • Technology Upgradation of tiny and SSI units
  • 15% Capital subsidy: Maximum 15 Lakhs
  • The maximum eligible loan is 1 Crore

Collateral free loans under Credit Guarantee Trust for Small and Micro Enterprises (CGTMSE)

  • Collateral free loans up to 2 Crores to all eligible MSE units
  • Maximum limit 1 Crore for retail trade
  • Prime security is asset financed through a bank loan
  • Hybrid security product available where CGTMSE guarantee cover is available for the portion of credit facility not covered by collateral
  • CGTMSE coverage as per Government norms

Scheme for financing energy efficiency projects

  • All SME units are eligible
  • Acquire equipment or provide services for the enhancement of energy efficiency
  • The maximum loan amount is 75% of the project cost subject to a maximum of 1 Crore
  • The minimum loan is 5 Lakhs
  • Grant of 25,000 available from IREDA subject to conditions

Scheme for textile industry

  • All new or existing textile units are eligible
  • Meet working capital requirements or finance new project including the purchase of second-hand plant and machinery
  • Minimum 25 Lakhs
  • Maximum 15 Crores
  • Term Loan, Demand Loan, Cash Credit facility, or Non-fund based facilities
  • Margin: 25% for WC requirement
  • The margin for Term Loan: 25% to 40%
  • Working Capital facility is renewable every 12 months
  • The repayment tenure for term loans can extend up to 9 years subject to annual review.
  • Concession of 50% in all service charges

Prime Minister Employment Generation Programme - PMEGP

  • Credit linked subsidy programme
  • Generation of employment in rural and urban areas by setting up self-employment ventures.
  • Provide continuous work to a large section of unemployed youth
  • Applicable in rural and urban areas under Micro enterprises sector for new projects alone.
  • Maximum project cost in the manufacturing industry is 25 Lakhs and 10 Lakhs in the services sector.
  • Only one person in a family is eligible under this programme
  • Individuals above 18 years are qualified
  • Minimum educational qualification is VIII pass
  • SHGs are also eligible provided they have not availed assistance in any other Government programme.
  • Production co-operative societies, as well as, charitable trusts are also qualified.
  • Margin 5% for the special category and 10% for the general beneficiary
  • Subsidy for general category is 15% in urban areas and 25% in rural areas
  • Subsidy for the special class is 25% and 35% respectively
  • No collateral up to 5 Lakhs
  • Eligible units get cover under CGTSME

Loans under interest subsidy eligibility certificate scheme - KVIC - ISEC

  • Financing institutions for lending to Khadi and village industries
  • Eligible institutions are KVIC, State KVIB, registered institutions and cooperative societies.
  • On receipt of Interest Subsidy Eligibility Certificate, the institutions can negotiate with the bank for financial assistance.
Fintech - Finance for e-commerce platforms

Baroda overdraft for e-Commerce business

  • The entire process is online
  • Collateral free credit facility
  • Boost NTC customers
  • Turn-around-time is between 3 to 5 days
  • No burden of EMI
  • Sellers engaged in manufacturing/trading activities through the Amazon portal.
  • Meet working capital requirements
  • Overdraft facility for 12 months
  • The minimum limit is 1 Lakh, and the maximum loan amount is 25 Lakhs depending on turnover.
  • Rate of interest is 12% at present
  • Processing fees between 0.75% and 1.10%
  • CGTMSE cover available

Baroda tankerz loan 3-in-1

  • SC/ST entrepreneurs who have been allotted transportation contract by oil marketing companies.
  • Purchase of LPG tankers
  • Collateral free facility under Stand-Up India Scheme
  • Extended tenure up to 60 months plus six months moratorium
  • Maximum loan eligibility is 1 Crore
  • Minimum loan is 10 Lakhs
  • Combine FB and NFB limit
  • Demand loan/Term Loan/Overdraft/Bank Guarantee
  • Reducing OD limits over 36 months
  • Minimum age 21 years
  • Maximum age 55 years
  • Margin 10% if the loan is in convergence with other Government schemes, otherwise it is 25%.
PSB Loan in 59 minutes

Eligibility

All registered MSME units

Loan amount

Minimum: 1 Lakh

Maximum: 5 Crores

Facility

Term Loan or Working Capital facility

Conditions

  • GST Identification Number is compulsory
  • Income Tax returns to be submitted in XML format
  • Bank statement for the last six months in PDF format
  • Details of ownership/directors such as KYC, personal, educational qualifications.
  • In-principle approval in 59 minutes
Baroda E-Business Pack

Eligibility

  • Two years of existing business activity
  • 10% of sales through digital mode
  • Make cash profit for a minimum of two years

Purpose

  • Working capital needs of MSME units and facilitate non-digital transactions of retail trade units as well.
  • Linkage with POS machine or payment gateway or UPI based app

Facility

  • Overdraft
  • Demand/Term Loan
  • Composite Loan

Loan amount

Maximum limit is 5 Crores of which term loan component should not be more than 1 Crore.

Margin

  • Working Capital: 6.25% on projected non-digital turnover and 7.50% on digital turnover projections.
  • Demand/Term Loan: 25%

Loan tenure

  • Overdraft: 12 months
  • Term Loan: 60 months including six months moratorium

Concessions

0.25% on applicable rates of interest

Other conditions

  • Top-up facility available after 12 months subject to regular conduct of the account.
  • No collateral up to 10 Lakhs, as the cover is available under NCGTC guarantee scheme of Pradhan Mantri Mudra Yojana.
  • Limits over 10 Lakhs and up to 2 Crores: CGTMSE cover available as per Government guidelines.
Commercial Vehicle Finance

Eligibility

Individuals, Sole proprietorship concerns, partnership firms, and companies engaged in transportation activities.

Purpose

Term loan for the purchase of a new commercial vehicle

Features

  • Quick sanction
  • No pre-payment charges after completion of 50% of repayment tenure
  • No collateral
  • Transparency

Loan amount

The maximum amount is 30 Crores

Margin

  • NIL up to Ex-showroom price on chassis
  • 25% on body
  • 5% on fully built vehicle

Repayment tenure

Maximum 60 months

Baroda Loan for Restaurants

Eligibility

A business entity engaged in restaurant activity

Purpose

  • Acquire new premises
  • Renovate or modernise existing premises
  • Decorations of restaurant
  • Purchase of kitchen equipment and furniture
  • Meeting working capital requirements

Limit

  • Minimum Working Capital: 1 Lakh
  • Minimum Term Loan: 5 Lakhs
  • Maximum Working Capital: Semi-urban 5 Lakhs, Urban 10 Lakhs, and Metro 50 Lakhs.
  • Maximum Term Loan:
    • Semi-urban: 50 Lakhs
    • Urban 1 Crore
    • Metro 5 Crores

Margin

  • Kitchen equipment and Furniture: 25%
  • Purchase/renovation/decoration: 35%
Baroda Laghu Udhyami Credit Card

Eligibility

Existing MSE customers with a satisfactory three-year record and enjoying loan limit up to 10 Lakhs.

Purpose

Meet urgent credit requirements

Limit

Maximum limit is 10 Lakhs

Loan tenure

Fixed tenure of three years subject to annual review

Margin

Up to 50,000: Nil

More than 50,000: 25%

Baroda MSE General Credit Card

Eligibility

  • Individual taking up non-farm activity across the country
  • Beneficiaries of BKCC, BACC, BWCC, LUCC, and BOBCARD will not be eligible for this facility.

Purpose

  • Working capital needs
  • Finance new project
  • Non-fund based limits

Limit

Minimum 25,000 and maximum 10 Lakhs

Loan tenure

  • Working Capital: 12 months subject to annual review
  • erm Loan: Maximum 84 months with a 12-month moratorium

Margin

  • Working Capital/Term Loan/NFB: 20%
  • Land and Building: 25%
Baroda GST Receivables Card for MSME Enterprises

Eligibility

New and Existing MSME borrowers enjoying working capital and other fund-based limits with the bank.

Purpose

Working capital assistance to get relief from the liquidity crunch because of making GST payments pending receipt of input tax credit.

Limit

Up to 80% of pending or unutilised input tax credit under GST

Loan tenure

Maximum of 9 months including moratorium of up to 3 months

Margin

20%

Baroda Property Pride

Eligibility

  • Business units making profits for the last two years
  • Borrowers should comply with licensing requirements

Purpose

Need-based finance required by the community

Facility

  • Overdraft for Working capital requirements
  • Non-fund based facilities
  • Term Loan to traders for development of shops, purchase of equipment, and other need-based requirements.
  • Term loan to others for purchase of plant/machinery and repairs/renovation to existing factory and building.

Limit

  • Minimum: 2 Lakhs for rural and semi-urban areas, 5 lakhs for urban and metro areas.
  • Maximum:
    • Rural: 1 Crore
    • Semi-urban: 3 Crores
    • Urban: 5 Crores
    • Metro: 10 Crores

Loan tenure

  • Overdraft facility: 12 months subject to annual review
  • Term Loan: Maximum 60 months depending on repayment capacity
NHFDC Refinance

Eligibility

  • For Self-employment purpose: Any disabled person between 18 and 60 years with 40% or more disability.
  • For Collateral Free MSE Loan: Business activity should be eligible under CGTMSE.
  • For educational loans promoted by NHFDC: Any Indian citizen with 40% or more disability.

Purpose

Collateral free loan for self-employment for people with disabilities at NHFDC/Bank rate of interest under CGTMSE.

Limit

Maximum limit is 25 Lakhs

Margin

  • Cash Credit: 25% against stocks and book debts (up to 90 days)
  • Term Loan: 25% on Plant and Machinery
  • Term Loan: 30% on Land and building
Baroda Contractor Scheme

Eligibility

  • MSME units engaged in contractor/sub-contractor work
  • Other units with an annual sales turnover of more than 250 Crores

Purpose

Working capital assistance

Limit

  • Minimum: 10 Lakhs
  • Maximum: 30 Crores including FB and NFB with inter-changeability clause

Margin

Overdraft: 25%

NFB Limits: 20%

SME Short-Term Loan

Eligibility

  • Registered MSME Units with satisfactory dealings with the bank without any significant irregularities.
  • An internal Credit rating of BOB-5 and above
  • Latest financial documents showing satisfactory performance

Purpose

Meet temporary mismatch or liquidity shortfall in business activity and not for repayment of any loans.

Limit

Minimum 10 Lakhs

Maximum 2.50 Crores

Loan tenure

12 months including moratorium period

Other benefits

25% concession in processing, upfront, and documentation charges

SME Medium-Term Loan

Eligibility

  • Registered MSME Units with satisfactory dealings with the bank for three years without any major irregularities.
  • Other entities with annual sales turnover between 1 Crore and 250 Crores
  • Satisfactory Credit rating for the last 3 years
  • Latest financial documents showing satisfactory performance

Purpose

  • Meet the working capital gap and improve the current ratio
  • Repay loans availed for purposes related to business activity

Limit

Minimum: 25 Lakhs

Maximum: 5 Crores

Loan tenure

36 months in equal quarterly or half-yearly instalments

Other benefits

25% concession in processing, upfront, and documentation charges

Scheme for Professionals

Eligibility

  • Professionals in any discipline
  • Possess a professional degree
  • Minimum income of 2.5 Lakhs in ITR
  • Minimum experience of 3 years is necessary in the field
  • Minimum CIBIL score of 700

Purpose

  • Meet working capital requirement
  • Purchase of office equipment
  • Construction of office on owned land
  • Acquire ready built office
  • Non-fund based facilities

Age criteria

  • Minimum age: 21 years
  • Maximum: 65 years at loan maturity

Limit

  • Minimum loan in rural and semi-urban areas is 5 Lakhs
  • In urban and metro areas, the minimum loan is 10 Lakhs
  • The maximum loan is 5 Crores

Facility

Term Loan/Cash Credit/NFB

Loan tenure

Maximum 84 months including a moratorium

Margin

  • Cash Credit Accounts: 25% on stock and Book debts (maximum of 90 days)
  • Term Loan: 25% on P/M and 30% on L/B
  • NFB Limits: Minimum 20%
Baroda SME Loan Pack

Eligibility

All MSME units are eligible provided they deal exclusively with Bank of Baroda

Purpose

Meet Working Capital requirements and cater to Capital Expenditure within the overall composite limit.

Limit

  • Maximum 4.5 times the TNW or 10 Crores whichever is lower
  • Fund-based and Non-fund based facilities available

Loan tenure

Maximum 7 years

Margin

25% on all facilities

Construction and Mining Equipment

Eligibility

Individuals and Business units engaged in construction and mining activities

Purpose

Purchase of new construction and mining equipment

Limit

Up to 50 Crores

Loan tenure

Maximum 5 years

Margin

Minimum 10% of Ex-showroom price

Other benefits

  • Quick sanctions
  • No prepayment charges on completion of 50% of the loan tenure
  • MSE units do not incur prepayment charges for loans up to 50 Lakhs
  • Collateral free loan
  • Transparent dealing
MSME Textile Scheme

Eligibility

All MSME units engaged in textile activity including traders

Purpose

  • Working capital requirements
  • Acquire/construct land and building
  • Purchase plant and machinery

Limit

  • Minimum amount is 25 Lakhs
  • Maximum loan is 25 Crores
  • Limit will be independent of TUFS Subsidy

Margin

  • Cash Credit: 25% on stock and book debts
  • Term Loan: 25% for new P/M and fixed assets
    • 30% for land and building, second-hand P/M under TUF scheme and imported.
    • 40% for indigenous P/M and outside TUF scheme
Baroda Contractor Mumbai

Eligibility

  • Registered contractors with BMC and civic agencies operating within the Greater Mumbai Metropolitan Region.
  • Registration of BOB accounts with BMC and other municipal agencies

Purpose

Meet all credit requirements of contractors engaged in civil engineering contracts awarded by BMC/civic agencies in the Greater Mumbai Metropolitan Region.

Limit

  • Constitution wise exposure ceilings for Proprietary concerns, partnership firms, trusts, and societies: 40 Crores.
  • Mobilisation Advance Guarantee: 20% of BG limit

Margin

  • Cash Credit: 25% of chargeable current assets
  • Bank Guarantee: Cash margin between 10% and 25%
  • The market value of the property should not be less than 15% of BG facility
  • 100% cash margin in case of guarantees covering disputes and court cases
MSME Capex Loan and Capex Card

Eligibility

MSME borrowers having a rating of BOB-5 and above with experience of a minimum of two years in the line of activity and maintaining satisfactory dealings with the bank.

Purpose

Meeting capital expenditure such as replacement of old machinery, purchase of other equipment, modernisation of plant, R&D, install captive power plants, upgrade technology, acquire software, purchase cars and other vehicles for business purpose.

Limit

  • 25% of Gross Block as per last audited B/S for the manufacturing sector or 10% of working capital for service sector based on DSCR subject to the following cap.
  • Baroda MSME Capex Card: Minimum 25 Lakhs and Maximum 5 Crores
  • Baroda MSME Capex Loan: Minimum 25 Lakhs and Maximum 2 Crores

Loan tenure

Ranging from 3 to 7 years inclusive of a moratorium period

Margin

P/M - 25% and L/B - 30%

Baroda Artisans Credit Card

Eligibility

  • All artisans engaged in production or manufacturing activity and otherwise eligible for bank credit are eligible for this facility.
  • Artisans registered with the Development Commissioner (Handicrafts) will get preference.
  • Artisans forming SHGs have an advantage
  • All existing artisan borrowers of the bank with limits up to 2 Lakhs and having satisfactory dealings with the bank.

Issue of cards

  • Photo card indicating sanctioned limit and validity
  • Passbook with borrower details

Limit

Need-based WC requirements with a maximum of 2 lakhs

Facility

Revolving credit facility

Validity

Maximum three years with annual review

Margin

  • Up to 25,000: No margin
  • Greater than 25,000: 15% to 25%

Other benefits

Registered beneficiaries are covered under Group Insurance Scheme with the Government sharing the premium with the beneficiary in the ratio 60:40. 

BOB Weaver Mudra Scheme

Eligibility

Existing/experienced handloom weavers involved in the activity

Purpose

  • Purchase looms and other CAPEX equipment
  • Meet working capital requirements

Limit

Maximum limit is 5 lakhs

Facility

Demand Loan and WC Finance

Other benefits

Interest subsidy available from the Government for a period of three years

Margin

  • 20% of the project cost
  • Margin up to 10,000 provided by the Government

Limit assessment

  • Demand Loan: 80% of the value of looms/other capital expenditure
  • WC Finance: 20% of Projected annual turnover less margin

Subsidy

  • Interest subsidy available presently @ 4.35% so that borrower gets finance at 6%.
  • Maximum interest subsidy is 7%
  • Margin money assistance available

Security

  • Hypothecation on machinery and stock
  • CGTMSE Guarantee available

Mudra card

Mudra Card available that entitles withdrawal up to a maximum of 5,000 per day.

Baroda Loan to Business Correspondents

Eligibility

  • Business correspondents and Kiosk operators having a valid agreement with service providers engaged by Bank of Baroda for providing banking services.
  • Minimum age 18 years
  • Maximum age 60 years
  • All vendors and suppliers (MSME units) of approved real estate developers 

Purpose

  • Purchase computers and other office equipment
  • Renovate office
  • Meet working capital requirements
  • Purchase of vehicles to visit villages for BC work

Limit

Location

Demand Loan

OD for WC

TL for Vehicle

Total

Rural and Semi-urban

75,000

25,000

50,000

1, 50,000

Urban

1,15,000

35,000

50,000

2,00,000

Metropolitan

1,50,000

50,000

50,000

2,50,000

Margin

10% of the loan amount

Other benefits

Loan covered under CGTMSE

Facility

Demand Loan/Term Loan/Overdraft

Repayment

  • Demand Loan: 36 months
  • Term Loan: 60 months
  • Overdraft: Repayable on demand subject to review annually
Vendor Bill Discounting

Basic eligibility

All vendors or suppliers (MSME units) of large real estate developers

Eligibility for real estate vendor

  • Registered with RERA
  • An external credit rating of A or above
  • Minimum 3 years of experience in the real estate sector
  • TNW as per latest BS: Minimum 50 Crores

Eligibility for vendors or suppliers

  • Minimum association of two years with the real estate developer
  • Minimum annual sales for the developer should be 50 lakhs
  • Positive PAT for the last two years
  • Positive TNW as per latest BS

Margin

Minimum of 10% on each bill

Maximum tenure

90 days

Bill/Invoice Discounting Under Value Chain Finance

Purpose

Financial assistance to eligible vendors by discounting bills drawn on the corporate entities.

Target

  • Manufacturing and Services enterprises except those falling in the negative list.
  • Vendors and Suppliers identified by the anchor corporate entity

Benefits to the corporate anchor

  • Negotiate better with vendors
  • Uninterrupted supply of raw material
  • Strengthens business relationships

Benefits for the vendors

  • Get finance at attractive terms
  • Low-security requirements
  • High quantum of funding because of a stipulation of lower margin

Eligibility for anchor

  • Minimum turnover as per the last BS: 200 Crores
  • Maximum Turnover: 2,000 Crores
  • External rating of BBB and above
  • Positive PAT for the previous three years
  • Minimum of 5 years in the business

Eligibility for vendors

  • Minimum turnover as per the last BS: 50 Crores
  • Maximum Turnover: 200 Crores
  • Positive PAT for a minimum of the previous two years
  • Minimum of 3 years in the business
  • CMR rating should be from 1 to 5

Margin

10% on the bill amount

Loan tenure

Maximum of 90 days

Corporate Finance

Facility Key Features

Working Capital finance

  • Fund-based facilities to meet business expenses or purchase business assets
  • Non-fund based limits like LC and BG for procurement of goods or services on credit.
  • Available in INR and Foreign Currency

Line of credit

  • The facility of a combined fund-based and non-fund based limit
  • Sanction of Cash Credit cum DA LC with a sub-limit for DA LC

Export finance

  • Pre-shipment Finance in INR and FC depending on the requirements
  • LC/BG for procurement of materials for export
  • Post-shipment finance comprises of the following facilities:
  • Purchase of Export Bills
  • Discounting of Export Bills under a confirmed order
  • Negotiation of Export bills under LC
  • Demand loan against export bills sent on collection basis
  • Post-shipment finance in foreign currency
  • Advance against export incentive receivables 

Bill finance

  • Purchase of inland bills drawn under LC or confirmed order
  • Discounting/negotiation of bills drawn under confirmed order/LC
  • Purchase of cheques

FCNR(B) loans

  • Loans available in US $, Euro, Japanese Yen, and Pound Sterling
  • All existing corporate clients are eligible for FCNR B Loans
  • Purpose of loan is to meet working capital, acquire business assets, or repay high-interest loans.
  • Loan tenure between 3 months and 36 months subject to periodical rollover

Bridge loans

  • Available to top-rated corporate clients against expected equity flows
  • Loans also available against expected proceeds of NCDs, ECBs, GDand other funds like FDI.
  • Loans available for periods up to a maximum of 12 months

Advance against shares

  • Individuals can avail loans up to 20 Lakhs against shares of corporate entities.
  • Employees of corporate companies can purchase shares of their companies to the extent of 12-months salary with an investment ceiling of 10 Lakhs.

Loan against rent receivables

  • Target groups are owners of immovable properties who rent out their properties to corporate clients, PSUs, banks, institutions, and MNCs.
  • Landlords of Bank of Baroda office premises or houses leased to BOB officers and executives.
  • The minimum loan amount is 25 Lakhs, and the maximum is 200 Crores.
  • The purpose is to meet all business or personal needs of the borrowers
  • Maximum limit is 55% of the rent in case of commercial real estate and 60% in case of non-commercial real estate for the unexpired portion of the lease.
  • Security available for loans up to 5 Lakhs is an assignment of future rent receivables and third-party guarantee.
  • For loans more than 5 Lakhs, additional security in the form of mortgage of leased property and/or liquid security to the extent of 1.10 times the loan amount.

Term finance

  • Fund-based limits for acquiring fixed assets, capital expenditure, expanding the business, or takeover of loan from another bank/financial institution.
  • Non-fund based finance in the form of DPG (Deferred Payment Guarantee) for procuring business assets and expanding the business.

Short-term corporate loan

Corporate clients get the benefit of attractive interest rates by availing short-term corporate loans to meet urgent business requirements.

Project finance

  • Finance an existing project or a new one with the help of project finance
  • Loans available in Indian and foreign currency

Infrastructure finance

  • Funding available for large infrastructure projects like Power generation, construction of roads and bridges on highways and railway lines, airport and seaport development, water supply system, telecom, and urban development.
  • Finance available in INR and Foreign Currency

Takeover of accounts

  • Loan takeover facility from other banks/financial institutions depending on the merits of each case

Non-fund based services

  • Letter of Credit: Import and Inland LC facility
  • Bank Guarantee: Performance and Financial Bank Guarantees
  • LC Advising/Confirming: Correspondent relationship with domestic and international banks.
  • Co-acceptance: Offers co-acceptance of bills to top-rated clients
  • Bancassurance: Tie up with National Insurance Company for issuing general insurance policies.
  • Solvency Certificates: Available to clients to provide to Government authorities.
  • Credit Reports: Bank provides credit reports on their clients to other banks/FIs.

Documents Required Bank of Baroda Business Loan

  • Identity Proof - Any one of the following
    • Voter ID Card
    • Passport
    • Driving Licence
    • PAN Card
    • Signature identification from the present banker of proprietor, partner, or director
  • Address Proof of Residence - Any one of the following
    • Latest telephone bills
    • Latest Electricity bills
    • Property Tax receipt
    • Passport
    • Voter ID Card of proprietor, partner, or director
  • Proof of address of the business
  • Income Documents
    • Three years IT Returns and Sales Tax Returns (if applicable)
    • Audited Balance Sheet (If audited B/S are not available, the bank accepts unaudited B/s for fund-based limits up to 25 Lakhs
    • MOA and AOA in case of companies
    • Partnership deed in case of partnership firms
    • Assets and Liabilities of promoters and guarantors with their latest IT returns
    • Projected B/S for the next two years in case of WC limits and the entire repayment tenure in case of term loans
  • Rent agreement, if business premises is on rent
  • MSME Registration
  • In case of takeover of loans, sanction letter along with terms and conditions is necessary
  • Photocopies of all property documents, if the property is offered as collateral
  • Position of accounts from existing bankers and confirmation of asset classification (in case of takeover)

For limits above 25 Lakhs, the following additional documents are necessary:

  • Audited Balance Sheets are compulsory
  • Business profile of the unit
  • Last three years B/S of associate or group companies
  • Project Report
  • Review of account
  • Manufacturing Process, if applicable

Why Apply for Bank of Baroda Business Loan on MyMoneyMantra?

Bank of Baroda is a nationalised bank having an extensive network of branches situated all over India. Applying for a Bank of Baroda Business Loan is possible by visiting the nearest office and submitting the documents. Applying through MyMoneyMantra is another option available to applicants.

The advantages of applying through our site are as follows:

  • Get the advantage of guidance from the loan experts at our website
  • Compare the Business Loans of other banks on a single screen
  • Study the different schemes available with Bank of Baroda and choose the one best suited for your requirements.
  • Our customer service executives help you with compiling the documents and submitting the same to Bank of Baroda
  • Use our Business Loan EMI Calculator to determine your prospective loan EMI. It enables you to arrive at your eligibility.

How to Apply for Bank of Baroda Business Loan on MyMoneyMantra?

MyMoneyMantra offers accessible avenues to apply for Bank of Baroda Business Loans from its website.

The process is simple:

  • Access the website of MyMoneyMantra and select the Business Loan option
  • The system asks you to submit details about yourself such as name, age, loan amount, city of residence and business particulars.
  • Provide your contact details, including your mobile phone number and email address
  • We send you an OTP that you enter at the appropriate location to gain access
  • Our Business Loan experts will guide you through the document compilation process and help you to apply for the Bank of Baroda Business Loan.

You can also apply through the following ways:

  • Visit the nearest branch office of Bank of Baroda and submit your loan application along with the necessary documents.
  • Apply online on the official website of Bank of Baroda

Other Products by Bank of Baroda

Besides Business Loans, Bank of Baroda offers the following products and services:

Savings Account

Current Account

Baroda E Trade - 3-in-1 Account

Fixed Deposit

Recurring Deposit

Baroda Home Loan

Baroda Home Loan Takeover Scheme

Baroda Home Loan Advantage

Baroda Pre-approved Home Loan

Home Improvement Loan

Interest Subsidy Scheme for Housing the Urban Poor (ISHUP)

Baroda Home Suvidha Personal Loan

Credit Risk Guarantee Fund Scheme for Low Income Housing (CRGFS)

Baroda Top Up Loan

Pradhan Mantri Awaas Yojana (PMAY)

Baroda Ashray (Reverse Mortgage Loan)

Baroda Vidya - from Nursery to Std XII

Baroda Gyan - Higher Study in India

Baroda Scholar - Study Abroad

Baroda Education Loan to Students of Premier Institutions

Skill Loan

Government of India Interest Subsidy Schemes for Education Loan

Vidya Lakshmi Portal

Baroda Education Loan for EDP being offered by Premier Institutions in India

Baroda Education Loans for EDP being provided by Premier Institutions abroad

Car Loan

Two-Wheeler Loan

Personal Loan

Baroda Overdraft for

E-Commerce Business

Baroda Tankerz Loan 3-in-1 (CA,BG,TL)

Mortgage Loan

Debit Card EMI

Mudra Loan

Commission Agents Loan (Arthias)

Loan for Public Issues/IPO

Advance Against Gold Ornaments/Jewellery

Baroda Advance Against Securities

Advance Against Securities

Traders Loan

Baroda m-Invest App

Mutual Funds

Baroda e-trade

Baroda E Trade - 3-in-1 Account

General Insurance

Life Insurance

Standalone Health Insurance

Digital Services

More Services

How to Calculate Bank of Baroda Business Loan EMI?

Bank of Baroda offers facilities to calculate your Business Loan EMI. Click on the Calculate EMI option and enter the loan amount, interest rate, and loan tenure to get your Business Loan EMI.

MyMoneyMantra has a Business Loan EMI Calculator on its Business Loan web page. Using this calculator is easy. Submit details like loan amount, rate of interest, and repayment tenure to arrive at the EMI amount. This calculator provides the loan amortisation schedule as well. It gives you the year-wise breakup of your loan repayments.

Bank of Baroda Business Loan - Processing Fee and Other Charges

Particulars Service Charges excluding GST

Processing fees - FB and NFB Working Capital Loan

  • Up to 25,000: Nil
  • Above 25,000: 350 per lakh or part thereof

Processing charges for TL/DL/DPG

1% of the sanctioned limit

Processing fees for Loan against Future Rent Receivables

2% of the approved limit

Annual review of term and demand loans (other than retail loan schemes)

0.10%

Processing charges for giving in-principle sanction

  • Up to 5 Crores: Nil
  • More than 5 Crores and Up to 10 Crores: 25,000
  • Above 10 Crores: 2 Lakhs upfront

Commitment charges - fund-based

0.10% to 0.40% depending on the customer's credit rating

Commitment charges - non-fund based

Above 1 Crore: 0.25% of the unutilised amount if average utilisation is less than 60%

Documentation charges

Corporate accounts above 1 Crore: 0.10% with a maximum of 25,000

Inspection charge - other than retail loans

  • Up to 5 Lakhs: Nil
  • More than 5 Lakhs and up to 1 Crore: 1,000
  • Above 1 Crore and up to 10 Crores: 5,000
  • Above 10 Crores: 25,000 per location

Prepayment charges

2% of the balance amount of loan for the residual period of repayment except retail loans

Bank of Baroda Business Loan - Customer Care

You can contact the bank through the following means regarding Business Loan queries:

  • Phone - Toll-free numbers - 1800-258-44-55 and 1800-102-44-55
  • Email - ops.ho@bankofbaroda.com
  • Contact your nearest branch for any assistance concerning your loan accounts

Bank of Baroda Business Loan - FAQs

Can you apply for Bank of Baroda Business Loan online?

Yes, it is possible to apply for Bank of Baroda Business Loan online. The official website of Bank of Baroda provides the loan application link against each of its loan products. You can apply for Bank of Baroda Business Loan using this link. You can also apply online through MyMoneyMantra.

What factors affect the Bank of Baroda Business Loan eligibility?

Various factors affect your Business Loan eligibility at Bank of Baroda:

  • Your credit score is a vital aspect that determines your eligibility
  • Bank of Baroda has its credit rating procedure. Your business figures and loan repayment record determine this rating. The better the internal score, the lower is the interest rate on your Business Loan.
  • Your profitability and income generation capacity is a crucial factor

How does Bank of Baroda charge interest on the OD and Cash Credit accounts?

Bank of Baroda charges interest on the utilised portion of your OD limit. It is a running account that allows you to deposit and withdraw at frequent intervals up to the drawing power in the account.

Can you foreclose your Bank of Baroda Business Loan?

Yes, it is possible to foreclose your Business Loan subject to paying the foreclosure penalty. There is no prepayment penalty on retail loans.

Does Bank of Baroda provide loans under CGTMSE guarantee?

Bank of Baroda is the leading nationalised bank in India. It is a member lending institution approved by CGTMSE. It offers loans up to 2 Crores to MSME units without collateral by covering the loan under CGTMSE guarantee.

How do I repay the Bank of Baroda Business Loan?

You can repay your Bank of Baroda Business Loan in various ways:

  • Set up a standing instruction (SI) with your Bank of Baroda current account for deducting the EMI on the due date.
  • Pay using internet banking or mobile banking
  • If you do not have an account with Bank of Baroda, you can submit PDCs or set up ECS instructions for debiting your account and repaying the loan instalment.
  • Deposit your cheque into the loan account with Bank of Baroda
  • Visit any branch office of Bank of Baroda and pay your loan instalment in cash

Is it necessary to submit audit B/S when applying for Bank of Baroda Business Loan?

If you are applying for a Business Loan of more than 25 Lakhs, it is compulsory to provide audited B/S. If otherwise, you can submit unaudited financial statements. However, it is advisable to offer audited B/S every time.

What determines the rate of interest on your Business Loan?

The following factors determine your interest rate on your Business Loan:

  • Your business classification is a vital aspect. There are different rates for micro, small, and medium enterprises.
  • Your loan amount is a critical factor, as well
  • A lot depends on the collateral you provide. If you submit 100% collateral, the rate of interest is less than if you do not offer collateral.
  • Your internal credit rating determines your rate of interest greatly. The better your score, the lower is the rate of interest.

How do you get MSE loan in 59 minutes?

The Government of India has devised a programme, whereby eligible MSME units can apply for a Business Loan on the website, www.psbloansin59minutes.com and get in-principle approval of the Business Loan within 59 minutes. Bank of Baroda is a prominent lender in this scheme. 

Does Bank of Baroda offer insurance services?

Bank of Baroda is a corporate agent for insurance service providers like Star Health & Allied Insurance and Max Bupa Health Insurance. It is also possible to insure your non-life like stocks, building premises, and so on with National Insurance Company through Bank of Baroda.

Latest News and Snippets - Bank of Baroda

Dena Bank and Vijaya Bank have merged with Bank of Baroda

With effect from 01st April 2019, Dena Bank and Vijaya Bank have merged with Bank of Baroda. Henceforth, all Dena Bank and Vijaya Bank branches will be known as Bank of Baroda branches. As a consequence of the merger, Bank of Baroda has more than 9500 offices, thereby making it the second-largest bank in size in India after the SBI.

Bank of Baroda is concentrating on improving technology post the merger of Vijaya Bank and Dena Bank

Bank of Baroda has an arduous task of interconnecting the systems, as there is a massive difference between the operating systems of the three banks. The bank is embarking on an 18-month plan to migrate all the customers to a single platform. Hence, it is concentrating on improving technology and looking to consolidate various IT services.

Bank of Baroda buys 3000 crores worth of DHFL loans

The housing loan lender, Dewan Housing Finance Limited (DHFL), is under extreme pressure to meet its credit obligations. Bank of Baroda has come to the rescue of DHFL by buying loans worth 3,000 Crores from DHFL. As these loans are high-rated assets, it can improve the overall asset quality of the Bank of Baroda.

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