Bank of Baroda Business Loan Details

Loan amountUp to Rs. 200 Crores
TenureFlexible & depends on loan type
Rate of interest6.75% p.a. onwards
TypesSecured and unsecured business loans
Type of facility Term loan as well as overdraft

Bank of Baroda Business Loan Features

  • Business Loans are available to all sectors such as manufacturing, services 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 linked to the Marginal Cost of Funds based Lending Rate (MCLR) of the bank.

Why Apply for 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 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.
  • Subsidy-based loans available
  • Facility to apply online
  • Easy documentation procedure
  • Reasonable processing fees

Bank of Baroda Business Loan Interest Rates 

The interest rates for Bank of Baroda business loans are linked to the bank’s 1-year Marginal Cost of Funds based Lending Rate (MCLR) or Baroda Repo Linked Lending Rate (BRLLR) or Base Rate (BR), which are as follows:

  • 1-year MCLR w.e.f from 12.11.2021: 7.30%.
  • Baroda Repo Linked Lending Rate (BRLLR) w.e.f.07.10.2021: 6.50%.
  • Base Rate (per annum) w.e.f. 01.07.2020: 8.15%.
  • Some business loans also involve a Strategic Premium (SP) of 0.25%.

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

  • The amount of loan.
  • The type of scheme availed of.
  • 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 Business Loan EMI Calculation

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:

YearOpening Balance

Amount Paid by

customer(EMI*12)

Interest paid during

the year

Principal paid during

the year

Closing Balance
1Rs. 50,00,000Rs. 98,417Rs. 28,125Rs. 70,292Rs. 49,29,708
2Rs. 49,29,708Rs. 11,81,008Rs. 3,06,014Rs. 8,74,994Rs. 40,54,714
3Rs. 40,54,714Rs. 11,81,008Rs. 2,45,090Rs. 9,35,918Rs. 31,18,797
4Rs. 31,18,797Rs. 11,81,008Rs. 1,79,924Rs. 10,01,084Rs. 21,17,713
5Rs. 21,17,713Rs. 11,81,008Rs. 1,10,221Rs. 10,70,787Rs. 10,46,926
6Rs. 10,46,926Rs. 10,82,590Rs. 35,664Rs. 10,46,926Rs. 0

Bank of Baroda Business Loans Types & Eligibility 

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 the MUDRA scheme, MSME borrowers and corporate entities. 

Following are different types of business loans offered by the Bank of Baroda along with their eligibility criteria: 

Traders: Loan up to Rs. 10 Crores and tenure up to 120 months with flexibility to avail peak/non-peak season limits to cater to the varying demands of the business.

Eligibility:

  • Individuals and non-individuals engaged in trading of goods/commodities in physical form and dealers in gold & silver jewellery.
  • Resident Indians and Non-resident Indians (NRIs).
  • Minimum Gross Income: Average of Rs. 3 Lakhs for the last 3 years for residents and average of Rs. 5 Lakhs for the previous 3 years for NRIs.
  • Margin: 40% of the realisable value of immovable property
  • Security: Mortgage of property.

Mudra Loans: Credit available to micro and small enterprises engaged in some income generation. There is no minimum limit and maximum amount available up to Rs. 10 Lakhs.

Eligibility:

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

Baroda Vidyasthali Loan: Loan up to Rs. 5 Crores for financing educational institutions for construction of school building, renovation, modernisation, expansion, equipment purchase, vehicle purchase, etc.

Eligibility:

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

Baroda Arogyadham: Loan up to Rs. 30 Crores for MSME units to set up/purchase of new clinic/hospital, renovate/modernise/expand existing hospital or clinic, purchase modern medical diagnostic or office equipment, and meet working capital requirements.

Eligibility:

  • All MSME units with at least one promoter/director should have the requisite qualification in any branch of medical science.
  • All financial ratios and working capital requirements should be met.
  • 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 Rs. 2 Crores are eligible for cover under CGTMSE, hence collateral-free.
  • Internal Credit rating not less than BOB 6.

Composite Loans: Loan up to Rs. 1 Crore for working capital requirement, and capital investment such as the purchase of fixed assets for business. Repayment up to 10 years (extendable).

Eligibility:

  • SME (Manufacturing sector) including artisans, village and cottage industries
  • SME (Service sector) engaged in industrial activities
  • Margin: Up to to 25%
  • Security: Charge on assets created out of the loan.
  • Collateral: depending on case to case basis.

Working Capital Finance: Loan to meet operating expenses, purchase inventory, finance receivables either by direct funding like Bills Discounting or by issuing a letter of credit.

  • Eligibility: All business units

Term Finance: Loan for all business units for capital expenditure, acquiring fixed assets, business unit set up or expansion, purchase equipment for professional use, etc.

Eligibility

  • Individuals conducting business with or without hired labour
  • Self-employed professionals are eligible
  • Security in the form of DP note, letter of hypothecation, and mortgage of business premises.
  1. Micro, Small, and Medium Enterprises (MSME): Business loans to MSMEs for acquisition of land, construction of factory building, machinery purchase, working capital, etc.
  2. Technology Upgradation Fund Scheme – TUFS: Loan available to the textile industry. Get interest reimursement of up to 25%.
  3. Credit Linked Capital Subsidy Scheme – CLCSS: Loan for technology upgradation of tiny and SSI units. Loan up to Rs. 1 Crore.
  4. Collateral free loans under Credit Guarantee Trust for Small and Micro Enterprises (CGTMSE): Collateral free loans up to Rs. 2 Crores to all eligible MSE units.

Eligibility:

  • 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

Apart from the business loan  schemes mentioned above, Bank of Baroda offerrs the following credit facilities to business units:

  • Scheme for financing energy efficiency projects
  • Scheme for textile industry
  • Prime Minister Employment Generation Programme - PMEGP
  • Loans under interest subsidy eligibility certificate scheme – KVIC - ISEC
  • Fintech – Finance for e-commerce platforms
  • Baroda overdraft for e-Commerce business
  • Baroda tankerz loan 3-in-1
  • PSB Loan in 59 minutes
  • Baroda E-Business Pack
  • Commercial Vehicle Finance
  • Baroda Loan for Restaurants
  • Baroda Laghu Udhyami Credit Card
  • Baroda MSE General Credit Card
  • Baroda GST Receivables Card for MSME Enterprises
  • Baroda Property Pride
  • NHFDC Refinance
  • Baroda Contractor Scheme
  • SME Short-Term Loan
  • SME Medium-Term Loan
  • Scheme for Professionals
  • Baroda SME Loan Pack
  • Construction and Mining Equipment
  • MSME Textile Scheme
  • Baroda Contractor Mumbai
  • MSME Capex Loan and Capex Card
  • Baroda Artisans Credit Card
  • Facility Revolving credit facility
  • BOB Weaver Mudra Scheme
  • Baroda Loan to Business Correspondents
  • Vendor Bill Discounting
  • Bill/Invoice Discounting Under Value Chain Finance
  • Corporate Finance
  • FCNR(B) loans
  • Bridge loans
  • Advance against shares
  • Short-term corporate loan
  • Project finance

Documents Required Bank of Baroda Business Loan

a) 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.

b) 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

c) Proof of address of the business

d) 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 Rs. 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.

e) Rent agreement, if business premises is on rent

f) MSME Registration

g) In case of takeover of loans, sanction letter along with terms and conditions is necessary.

h) Photocopies of all property documents, if the property is offered as collateral

i) 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:

a) Audited Balance Sheets are compulsory

b) Business profile of the unit

c) Last three years B/S of associate or group companies

d) Project Report

e) Review of account 

f) Manufacturing Process, if applicable

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

Bank of Baroda Business Loan Charges

  • Processing fees: Up to 2% of the approved limit.
  • Commitment charges – fund-based: 0.10% to 0.40% depending on the customer’s credit. Documentation charges: Up to 0.10% with a maximum of Rs. 25,000.
  • Inspection charge – other than retail loans: Up to Rs. 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 – gm.ops.ho@bankofbaroda.com
  • Contact your nearest branch for any assistance concerning your loan accounts

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Bank of Baroda Business Loans 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 Rs. 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 Rs. 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.