A business loan is basically the money that you borrow from a bank or any financial institution to start or expand your business. Depending upon the nature of your business and your needs, banks offer many kinds of customizable loans for you to establish your business. Bank of Baroda is a well-known bank in India. It has over 5,373 branches all over the country and continues to grow and expand its products and services. It offers business loans to self-employed professionals, MSMEs (Micro, Small and Medium Enterprises), corporates and businesses that trade internationally. Customized products are also offered by the bank to meet the requirements of the customers. A few different types of business loans offered by the Bank of Baroda are Working Capital, Export Finance, Bill finance, Bridge Loans, Short-term Corporate Loan, Term Finance and so on.
Bank of Baroda Business Loan Interest Rate
The interest rate on the Bank of Baroda business loan will depend upon many factors. Some of them are elaborated as follows:
- Credit score:If your credit score or CIBIL score is high, you will be at advantage when negotiating the business loan interest rates. Otherwise, you will get the loan at a higher interest rate. Due to poor credit score, you loan application might also get rejected. To increase your chances of business loan approval, keep your credit score more than 700.
- Loan amount:You might get business loan at a lower interest rate if your apply for a higher loan amount. This, in turn, leads to lower EMI’s too.
- Business stability: Your business must be stable and must have significant business experience and exposure to make profits to receive a lower rate of interest from the bank.
Bank of Baroda Business Loan Schemes
Bank of Baroda offers various business loan schemes to its customers. The details of some of them are given in the table below:
|Loan Type||Loan Amount||Loan Tenure||Interest Rates|
|Baroda Vidyasthali Loan (For Educational Institutes)||Up to 15 crores||Up to 7 years (including moratorium period of 2 year)||(MCLR + SP) + (0.75% – 2.00%)|
|Loan Against Rent Receivables||Up to 200 crores||Up to 10 years||For Landlords of BOB Branch Premises: 1 Year MCLR + Strategic Premium + 1.25%|
For others: 1 Year MCLR+ Strategic Premium+3.25%
|Baroda Professionals||Up to 5 crores||Up to 7 years||As per standard applicable rates|
|Commercial Vehicle Finance||Up to 30 crores||Up to 5 years||For Transporters: 1 Year MCLR + Spread ranging from 0.55% to 1.20%|
Note: The figures given in the table are indicative and are subject to change at the banks’ or RBI’s discretion without prior information.
Eligibility Criteria of Bank of Baroda Business Loan
Your eligibility for Bank of Baroda business loan depends on the two most basic and important aspects, your loan repayment ability and your repayment history which is assessed by the following parameters:
- Age: Age is of significant importance as it determines your repayment capacity. As per the eligibility criteria of your business loan scheme if your age does not qualify, you cannot apply for business loan.
- Credit score/CIBIL score: To get business loan approval, your CIBIL score or credit score must be more than 750. Your entire CIBIL report i.e. past repayment history, loans, etc. will be taken into consideration while determining your eligibility for a business loan.
- Business sturdiness:If your business is stable and has potential to grow only then you will be able to give the money back. To assess your businesses’ sturdiness, the bank looks into the growth in your business’s sales. To increase your chances of getting your loan approved, you must display an increase in sales and future work.
Documents Required for Bank of Baroda Business Loan
Bank of Baroda realises that not all businesses are same and thus they have different fund requirements. To cater to these varied requirements, the bank offers different business loan schemes to its customers. Since this business loan schemes differ from each other, their eligibility criteria and document requirement too varies. However, a few common documents that you will have to submit if you were to apply for Bank of Baroda Business Loans are:
- Identity proof- Aadhaar card, PAN card, voter’s ID, passport.
- Address proof- Aadhaar card, PAN card, passport, bank statement, agreement of rent, etc.
- Business proof- PAN card, sales tax, service tax, registration documents, a copy of partnership deed, registration certificate by RBI, SEBI, etc.
- A copy of 2 years income tax returns.
- 2 photographs.
- Project reports.
- Last 6 months bank statement.
Depending on your business loan type and credit profile, you might be required to submit additional documents.
Bank of Baroda Business Loan Application Form
The Bank of Baroda business loan application form requires the following details:
- Applicant’s name
- Workplace address
- Loan amount
- Residential address of the proprietor
- Date of business commencement
- Contact details
- Business nature
- Proprietors details and address
- Banking details
- Security/collateral details
- The requirement of working capital
The application form is available at all Bank of Baroda branches. You can fill it accurately and submit it to any bank branch to apply for Bank of Baroda business loan.
Benefits of Availing Bank of Baroda Business Loan
The benefits of applying for Bank of Baroda Business Loan are:
- Competitive Interest Rates – The bank offers business loans at competitive interest rates.
- Loans for Different Business Sectors – Keeping in mind different needs of different businesses, the bank offers business loans broadly to MSMEs, Corporates and Businesses that trade internationally.
- Different Schemes for Different Businesses – Not every business is same and to cater each one’s monetary requirements, the bank offers different business loan schemes.
- Quick Loan Application Process – The bank understands that businesses are time sensitive, and thus, have quick business loan application process.
- Fast Loan Disbursal – Since the bank has quick loan application process and also minimal documentation, it takes no time to get loan approval and disbursed in your bank accounts.
In conclusion, a Bank of Baroda business loan will only assist you in establishing your business and making your dream come true. Bank of Baroda offers attractive interest rates and multiple business loan schemes to choose from. The bank not only provides a hassle-free business loan process but also has no hidden charges, easy documentation process and quick disbursal process.