Bank of Baroda Business Loan

The key highlights of BOB business loans are as mentioned below:

• Business Loans are available to all sectors, including manufacturing, service sectors, traders, and exporters.
• Collateral-free loans are available up to Rs. 200 Crores to the manufacturing and service sectors under the CGTMSE scheme.
• Loans are available under all Government-sponsored schemes.
• Attractive rates of interest are linked to the Marginal Cost of Funds based Lending Rate (MCLR) of the bank.

• 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 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 a BOB business loan.
• Subsidy-based loans available
• Facility to apply online
• Easy documentation procedure
• Reasonable processing fees

Bank of Baroda (BoB) offers various MSME business loans with interest rates starting around 7.25% p.a. Rates are not fixed and depend on factors like the benchmarking rate (BRLLR/MCLR), your credit risk rating, loan amount, collateral, enterprise type, and the specific loan scheme. Your business vintage, turnover, CIBIL score, and relationship with BoB also play a role.

The following are some of the most sought-after Bank of Baroda business loan types offered by Bank of Baroda:

1. Composite Loan

This loan can be obtained for fixed capital investment and/or working capital requirements.

Key features:

• Loan amount: Up to Rs. 1 Crore
• Interest rate: Competitive BoB MSME loan interest rate, linked to Repo Rate/MCLR.
• Tenure: Minimum 3 and a maximum of 10 years (can be extended), with an initial holiday period of 12 months to 18 months.
• Margin:
  • Nil for loans up to Rs. 25,000
  • 15% to 25% for loans above Rs. 25,000 and up to Rs. 1 Crore
• Collateral/security: Not required.

2. Digital MSME Loan

This BoB business loan can be availed of as working capital fund-based facilities.

Key features:

• Loan amount:
  • Minimum: Rs. 10 Lakhs
  • Maximum: Rs. 5 Crores.
• Interest rate: To be charged as per the policy of the bank.
• Upfront fee/ processing fee: As per the policy of the bank.
• Security:
  • The first charge on all assets created out of the loan is extended to the borrower
  • As mutually agreed by the bank and the borrower
• Eligible entities:
  • Micro Enterprise: The investment in plant & machinery or equipment should not exceed Rs. 1 Crore, and turnover should not exceed Rs. 5 Crores.
  • Small Enterprise: The investment in plant & machinery or equipment should not exceed Rs. 10 Crores, and the turnover should not exceed Rs. 50 Crores.
  • Medium Enterprise: The investment in plant & machinery or equipment should not exceed Rs. 50 Crores and turnover should not exceed Rs. 250 Crores.

3. Baroda Energy Efficiency Project (BEEP) Finance

This scheme offers loans to ESCO or Host entities falling under the Micro & Small category.

Key features:

• Loan amount:
  • Minimum: Rs. 10 Lakhs
  • Maximum: Rs. 15 Crores
• Tenure: Up to 5 years, including the moratorium period.
• SIDBI guarantee: Up to 75% of the loan amount.
• Guarantee fee: Slab-wise fee based on the grading of ESCO and payable by the borrower.
• Minimum collateral required under the scheme: 25% of the loan amount.
• Upfront DSRA: Equivalent to 3 months EMI to be obtained.
• Interest rate: The BoB MSME loan interest rate for this scheme is as applicable for MSE borrowers.

4. Digital Mudra Loan

It is a need-based Term Loan/Working Capital Loan for eligible borrowers.

Key features:

• Available on platforms: bobWorld Application, bob World Internet, and Bank of Baroda Website
• Loan amount:
  • Minimum: There is no minimum loan amount for Mudra loans.
  • Maximum: Up to Rs. 10 Lakhs in 3 categories viz. Shishu, Kishore, and Tarun.
• Margin/promoters' contribution: As per the policy framework of the bank.
• Security:
  • The first charge on all assets created out of the loan is extended to the borrower
  • No collateral security and eligible accounts are covered under CGTMSE
• MUDRA loan is not for consumption/personal needs.
• Interest rate: BOB business loan interest rate is charged as per the policy of the bank.
• Upfront fee/ processing charges: As per the policy of the bank.

5. Baroda Overdraft for E-commerce Business (Amazon/Flipkart)

It is an unsecured loan product (clean overdraft) designed by the bank to cater to the working capital needs of merchants engaged in online selling through e-tailers.

Key features:

• Assessment: Based on turnover from Amazon/Flipkart & Flipkart sales.
• Target group: Sellers engaged in manufacturing/ trading activities via the Flipkart portal.
• Purpose: Working capital requirements for procurement/ processing/ manufacturing of goods/ trading and receivables arising out of the Flipkart portal.
• Type of facility: Overdraft.
• Period of facility: 12 months.
• Loan amount:
  • Minimum: Rs. 5 Lakhs
  • Maximum: Rs. 25 Lakhs
• Security: Not required.
• Interest rate: 2.35% over BRLLR (9.15%) + strategic premium (SP) of 0.25% = 11.75% p.a.
• Management fee: 1.35% + GST p.a. of overdraft limit.
• Inspection charges: Rs. 1,000 per visit + actual conveyance & out-of-pocket expenses.
• Eligibility: Sellers on the Amazon/Flipkart platform & having at least 6 months of business relationship.

Apart from the popular business loan schemes mentioned above, the Bank of Baroda also offers the following MSME loans:

Apart from the interest rate, Bank of Baroda business loans also involve some charges such as processing fees, documentation charges, commitment charges, part prepayment and foreclosure charges, and so on.

The following are the charges applicable to some popular BOB business loans:

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.

You can also use the business loan EMI calculator available on our website. 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.

Here is an example of EMI calculation using MyMoneyMantra EMI Calculator:

• Loan amount required: Rs. 50 Lakhs
• Applicable rate of interest: 6.75% p.a.
• Repayment tenure: 5 years
• EMI to be paid by you each month: Rs. 98,417
• Total interest to be paid: Rs. 9,05,038
• Total amount to be paid by you to the lender: Rs. 59,05,038

Our EMI Calculator also provides the following amortization schedule:

The following are some basic eligibility criteria for BoB business loan schemes:

• The minimum age of the applicant should be 18 years.
• The maximum age of the applicant should be up to 65 years.
• The applicant must have business stability and a good repayment history.
• The applicant must have a good credit score (preferably 750 or above).
• The applicant should not have defaulted in the past with any financial institution.

• 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 is not available, the bank accepts unaudited B/s for fund-based limits up to Rs. 25 Lakhs.
  • MOA and AOA inthe  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 the business premises are on rent
• MSME Registration
• In case of a takeover of loans, a 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 Rs. 25 Lakhs, the following additional documents are necessary:

• Audited balance sheets are compulsory
• Business profile of the unit
• The last three years' B/S of associate or group companies
• Project report
• Review of the account 
• Manufacturing process, if applicable

If you want a Bank of Baroda business loan online apply through the official website of the bank for instant loan processing. All you need to do is visit the official website of the bank, then under the Loans & Advances section, click on MSME tab and select your desired MSME loan product. Click on the ‘Apply Now’ button and fill in the online loan application.

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

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