Bank Of Baroda Business Loan: Features, Benefits, Interest Rates.

About Bank of Baroda Business Loan

Bank of Baroda provides a comprehensive portfolio of financial services and credit solutions to MSMEs and large organizations. You can take advantage of an attractive rate of interest combined with an attainable repayment schedule.

Bank of Baroda Business Loan

Funding is not uncommon for businesses. Whatever their status, they will at some point in their lives require financial assistance. This is when they turn to traditional banks, NBFCs, and other financial institutions for the financial support they need.

In the wide variety of financial institutions out there, BOB offers a broad range of loan products to accommodate the varying demands of different segments of businesses.

The banking and financial solutions offered by the Bank of Baroda make it a respected financial institution in India. An SME loan granted by BOB is obtainable to any eligible MSMEs, individuals working for themselves, entrepreneurs, business corporations, and the like.

We will take a deeper look at Bank of Baroda’s business solutions in the coming sections. Along with their loan types, rate of interest, eligibility, documents required, and many more. An in-depth look at the vital elements of a Bank of Baroda Business Loan is outlined below:

Highlights of loans offered by BOB

You can take advantage of the business loan extended by the Bank of Baroda for all business-related purposes including expansion, growth, and improvement of your organization, acquisition and upgrading of equipment, and more.

Bank of Baroda provides a comprehensive portfolio of financial services and credit solutions to MSMEs and large organizations. You can take advantage of an attractive rate of interest combined with an attainable repayment schedule.

Target groupMSEs (useful in a variety of settings)
SecurityCGTMSE does not require security or guarantees for eligible accounts
Processing feeNIL
Typical loan amountsWhile there is no minimum loan amount, the maximum loan amount is Rs10 Lacs
Calculation of interest ratesIn line with RBI guidelines, interest rates are determined by the MCLR.
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Loan Advantages and Specifications

Borrowing for your business from the Bank of Baroda is an excellent option. Consider these advantages:

Competitive pricing: A key characteristic of this loan is the affordable and reasonable interest rate. Depending on the size of the company, you can expect to pay between 7.50 percent and 13.50 percent

Useful for any business segment: BOB offers a loan type tailored to each segment of business whether we are talking about Micro Small Medium Enterprises, small businesses to multinational corporations.

An array of potential purposes: There are various ways in which you can use this funding. Among them are constructing new buildings, buying new tools and machines, establishing new branches, incurring operating costs, and much more.

Providing loans to a variety of customers: Their solutions are aimed at providing assistance to all categories of clients, whether they are independent contractors or sole proprietor who reports self-employment income or working professionals like Doctors, Engineers, Lawyers, CAs, and so on. Bank of Baroda Business Loan is available for utilization by a wide range of consumers as well as organizations.

Simple and convenient online application process: The Bank of Baroda Business Loan offers a straightforward, easy-to-use application form online. There is no need to endure a labor-intensive paper-based procedure, thereby reducing the time and inconvenience of having to visit their branch offices.

An immediate funding decision: The status of your business application is available to you within a short period. Upon submission and acceptance of your loan request, you will gain control of your funds in a matter of days.

Read More: Myths about unsecured business loans debunked

Bank of Baroda offers various segments of business loans based on the following rules:

Age: To qualify for this business loan, you must be at least 21 years of age. When making the final repayment, individuals should not be older than 60 years of age.

CIBIL score: You must have a CIBIL score of 750 or higher in order to receive competitive interest rates on business loans. A less than ideal credit score could result in a rejection of a business loan inquiry or considerably increased interest rates upon approval.

Your business needs to be profitable and stable: You must have a financially-sound business that has been around for two years. As part of the procedure, they will also take into account your sales growth over the past three years. Having a weaker sales performance can have adverse effects on your loan application.

History of credit default: Financial institutions should not record any credit defaults on your company. Your bank statement and ITR will be thoroughly examined prior to offering these services.

The following candidates can be considered for a business loan:

  1. Individuals
  2. Proprietorships
  3. Partnership Firms
  4. Co-operative societies

Application documents for BOB loans:

Check out the requirements to get a business loan from the Bank of Baroda:

Photographs: You will be asked to provide your recently taken passport-sized photos.

Documents to prove your address: Passports, rent agreements, utility bills, etc. are acceptable proofs of address.

Documents supporting your business existence: These documents may include a business registration certificate, AoA, partnership agreement (in case it is a joint venture), and a Copy of the PAN card for businesses, among others.

Evidence of income: Your bank statement for the past six months must be submitted to assess the income earned by the business, together with a copy of the income tax returns for the last two years.

Further documentation: Should the bank deem it necessary; it reserves the right to request some additional documentation. It can be based on variables such as the kind of financial solution you are seeking and the category of your business.

Banking institutions like the Bank of Baroda offer a variety of loans for all segments of society. Different types of financing are offered by the bank to traders, micro businessmen through the MUDRA scheme, as well as corporations.

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Digital MSME Working capital Loan: Provides businesses with short-term liquidity by financing daily operations, purchase of supplies, funding invoices, and other business needs.

Here are the things borrowers should have handy before applying for a Digital MSME Working Capital loan:

  • An email address and mobile number that is valid
  • PAN information, GSTN login (if associated with GSTN)
  • Downloaded ITR 3/5/6 via the income tax website, along with ITR 4 all in pdf format
  • Bank statements for the past six months in PDF format
  • Registration details for your business
  • KYC details for the business and its promoters, partners, or proprietors
  • pre-existing loan specifics (if any)
  • Details of pre-existing loans (if any)
  • Pre-existing loans and their specifics

A few of these features include:

UsefulnessThe provision of working capital by funds
Sum of the loanRs10 Lacs to Rs5 Crore
Conditions of tenureSubject to annual review after 12 months
Interest rateAs determined by the bank
SecurityAn initial charge is owed on the borrower’s assets that are acquired with the loan amount / in accordance with the loan terms

Mudra Loans: These loans are intended to help small businesses acquire economic assistance. Loans offered under this program are to micro-businesses or small businesses involved in revenue creation mainly from processing, and retail businesses.

On the basis of the loan amount involved, we can categorize this solution into three categories:

Shishu: Generally, Shishu loans are less than Rs50,000

Kishore: The loan amount ranges between Rs50,000 and Rs5 Lacs.

Tarun: For loan amounts exceeding Rs5 Lacs up to an overall limit of Rs10 Lacs

Read More: Complete Guide on Term Loans

Guidelines for submitting an application for a Digital Mudra loan:

  • An email address and mobile number that is valid
  • PAN information, GSTN login (if associated with GSTN)
  • Financial statements for the last six months, as well as account numbers and IFSC codes for in pdf format
  • An up-to-date bank statement as a pdf along with bank details like account number and IFSC code
  • Registration details for your business
  • KYC details for the business and its promoters, partners, or proprietors
  • Current loan details (if any)

Features:

Target groupMSEs (useful in a variety of settings)
SecurityCGTMSE does not require security or guarantees for eligible accounts
Processing feeNIL
Typical loan amountsWhile there is no minimum loan amount, the maximum loan amount is Rs. 10 Lacs
Calculation of interest ratesIn line with RBI guidelines, interest rates are determined by the MCLR.

Eligibility:

  • Under MSEs, businesses other than agriculture
  • A source of income must be available.
  • Requirements of up to Rs10 lakhs.
  • Argo-allied sectors like livestock and horticulture are also eligible to apply under the PMMY scheme.
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Term Finance 

Used to finance the purchase of fixed assets at the commencement of the business, acquire new industrial facilities for expanding operations, and replace high-interest loan obligations.

Eligibility:

Anyone who runs a business, regardless of whether it consists of staff or not

In addition to entrepreneurs and professionals, independent contractors are also eligible

It is ideal for an applicant to show evidence of good credit history within the last three years and to provide supporting documentation, statements of income and expenses, in addition to documents showing good relationships with financial institutions for the past three years

Composite loans: Borrowers who obtain composite loans are using them as investments or working capital. These loans are limited to Rs100 Lacs on loan disbursements. Neither collateral nor third-party guarantees are required with this type of financing.

Margin: For loans above 25,000 rupees and up to Rs1 Crore, the margin is 15%-25%.

Repayment period: Minimum 3 years and Maximum of 10 years.

Rate of interest: calculated based on repo or MCLR rates

Read More: Business Loans and Top 14 Types of Business Loans

To know more details on SME loans from Bank of Baroda, you can email [email protected] or call +918886666821.

FAQ‘s

What makes Bank of Baroda’s business loans so attractive?

Is there an ideal credit score?

Is there a ceiling on how much credit I can seek from BOB for my business?

Does the BOB Loan require an audited balance sheet?

Is there an online application available for business loans from the Bank of Baroda?

Are CGTMSE-guaranteed loans available from the Bank of Baroda?

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