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Bank of Baroda offers business loans to business enterprises. The business loan schemes offered by the lender include Bank of Baroda Working Capital Finance Loan, Bank of Baroda Term Loan, Bank of Baroda SME Short Term Loan, Bank of Baroda SME Medium Term Loan, Bank of Baroda MSME Loan, Bank of Baroda Digital MSME Loan, Bank of Baroda SME Gold Card Loan, Bank of Baroda MSE General Credit Card Loan, Bank of Baroda MSE Capex Loan and Capex Card, Bank of Baroda SME Loan Pack, Bank of Baroda Composite Loan, Bank of Baroda Laghu Udyami Credit Card and Bank of Baroda Bill/Invoice Discounting Under Value Chain Finance.
| Bank of Baroda Business Loan Highlights 2024 | |
| Interest Rate | The interest rate is linked to existing repo rate or MCLR (marginal cost of funds based lending rate) |
| Loan Amount |
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| Loan Tenure |
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Note: Data as of 15th April 2024
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Bank of Baroda Business Loan Interest Rates
The business loan interest rates offered by Bank of Baroda is linked to the existing repo rate or MCLR (marginal cost of funds based lending rate). However, the lender has not disclosed the interest rates for its business loan schemes.
Fees and Charges for Business Loans from Bank of Baroda
For Bank of Baroda Digital SME Medium Term Loan and Short Term Loan
| Particulars | Fees and Charges |
| Processing, upfront & documentation charge | 25% concession on the applicable charges |
For Bank of Baroda Digital MSME Loan
| Particulars | Fees and Charges |
| Processing/upfront fees | As per the lender’s policy |
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Types of Business Loans provided by Bank of Baroda
Bank of Baroda Working Capital Finance Loan
Purpose: Bank of Baroda Working Capital Finance Loan enables corporations to meet their business-related expenses related to operational costs, inventory purchase and receivables financing. The lender offers both funded and non-funded facilities under their business loan scheme.
Funded facilities, both in Indian and foreign currency include funding and assistance to purchase business assets or meet business expenses. Non-funded facilities, on the other hand, includes letters of credit or guarantee provided by the bank on behalf their borrower to suppliers and government departments for procuring goods or services on credit.
Interest Rate: The interest rate for Bank of Baroda Working Capital Finance Loan is linked to the Repo Rate/MCLR, although the lender has not disclosed the interest rate range for this business loan scheme.
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Bank of Baroda Term Finance Loan
Purpose: Bank of Baroda Term Finance Loan offers both fund and non-fund based finance enables business units to meet their business-related expenses. The lender offers fund based finance for incurring capital expenditure for starting/expanding industrial units/businesses or for swapping existing debt availed from other lenders.
On the other hand, the non-fund based finance offered by the lender comprises of deferred payment guarantee acquiring fixed assets for starting/expanding businesses/industrial units.
Interest Rate: The interest rate for Bank of Baroda Working Capital Finance Loan is linked to the Repo Rate/MCLR. However, the lender has not specified the interest rate for this business loan scheme.
Bank of Baroda MSME Loan
Purpose: Bank of Baroda MSME Loan enables MSME Units avail business loan for the following purposes:
- Acquiring factory, land and constructing building spaces
- Buying plant and machinery including testing equipment, lab equipment, etc.
- Using the loan proceeds for working capital requirements, like raw materials, finished goods, stock-in-progress and purchase/discounting of bills.
Interest Rate: The interest rate for Bank of Baroda MSME Loan is linked to the Repo Rate/MCLR, although the lender has not specified the interest rates for this business loan scheme.
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Bank of Baroda SME Medium Term Loan
Purpose: Bank of Baroda SME Medium Term Loan enables SME Units to avail business loan for the following purposes:
- Acquiring factory, land and constructing building spaces
- Buying plant and machinery including testing equipment, lab equipment, etc.
- Using the loan proceeds for working capital requirements, like raw materials, finished goods, stock-in-progress and purchase/discounting of bills.
Loan Amount: Rs 25 lakh to Rs 5 crore
Loan Tenure: Up to 3 years
Loan Repayment: The loan should be repaid in equal quarterly/half-yearly instalments
Interest Rate: The interest rate for Bank of Baroda SME Medium Term Loan is linked to the Repo Rate/MCLR. However, the lender has not disclosed the business loan interest rates for this loan scheme.
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Bank of Baroda SME Short Term Loan
Purpose: Bank of Baroda SME Short Term Loan enables SME business units (except for those in real estate, power education or IT sector) to avail term loan facility for meeting their temporary liquidity shortfalls or mismatches. This loan facility cannot be availed for repayments of unsecured loans, loans availed from other lenders, etc.
Loan Amount: Rs 10 lakh to Rs 2.5 crore
Loan Tenure: Up to 1 year, including the moratorium period
Interest Rate: The interest rate for Bank of Baroda MSME Loan is linked to the Repo Rate/MCLR. However, Bank of Baroda has not specified the interest rates for this business loan scheme.
Bank of Baroda Digital MSME Loan
Purpose: Bank of Baroda Digital MSME Loan enables MSME business units to raise finance for their working capital needs through digital mediums like Bank of Baroda website, bob World and bob World Internet.
Loan Amount: Rs 10 lakh to Rs 5 crore
Loan Tenure: Up to 1 year, subject to annual review
Interest Rate: Bank of Baroda has not specified the interest rates for its Digital MSME Loan scheme. Like other lenders, the bank may consider various factors like the credit profile of the loan applicants, the required loan amount and tenure, etc. while setting their interest rates.
Security: The security for Bank of Baroda Digital MSME Loan is the first charge on all assets created out of the business loan extended to the borrower or as agreed by the lender and the borrower.
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Bank of Baroda SME Gold Card Loan
Purpose: Bank of Baroda SME Gold Card Loan enables SME business units avail working capital loans to meet the emergent requirements and manage temporary liquidity mismatches due to delayed payment by buyers, tax payments etc.
Loan Amount: Rs 10 lakh to Rs 5 crore
Loan Tenure: Up to 1 year, subject to annual review
Interest Rate: The interest rate for Bank of Baroda SME Gold Card Loan are decided as per the credit rating of the SME business unit. However, Bank of Baroda has not specified the interest rates for this business loan scheme.
Security: The security for Bank of Baroda SME Gold Card Loan is as follows:
- Personal guarantee of directors
- Charge on the borrower’s current assets, along with extension of charge on fixed assets if stipulated for cash credit.
- Collateral security as available to other facilities.
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Bank of Baroda MSE General Credit Card Loan
Purpose: Bank of Baroda MSE General Credit Card Loan enables MSE business units avail both fund based and non-fund based facilities (letter of credit or bank guarantee) for their working capital needs and for financing new projects i.e. acquiring land or constructing plant, building and machinery based on the project/expansion cost.
Loan Amount: Rs 25,000 to Rs 10 lakh
Loan Tenure: Maximum 7 years with 1 year moratorium (for term/demand loan) and 1 year (for working capital) subject to annual review
Margin: 20% (for working capital/term loan/demand loan/non-fund based loans) and 25% (for land and building)
Interest Rate: The interest rate for Bank of Baroda MSE General Credit Card Loan is linked to the Repo rate. However, Bank of Baroda has not disclosed the interest rates for its business loan scheme.
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Bank of Baroda MSE Capex Loan and Capex Card
Purpose: Bank of Baroda MSE Capex Loan and Capex Card enables MSE business units procure funds for various needs like
- replacing old machinery
- purchasing balancing equipment
- modernization
- investing in research and development
- installing captive power plants and upgrading technology
- altering factory/office layout
- acquiring software, hardware and tools, jigs, fixtures etc. that are part of plant and machinery
- purchasing cars, passenger car for staff and other vehicles for business purpose
Loan Amount: Rs 25 lakh to Rs 2 crores (for MSME Capex Loan) and Rs 5 crore (for MSME Capex Card)
Loan Tenure: 3 to 7 years (including moratorium period)
Margin: 25% (for plant and machinery) and 30% (for land and building)
Interest Rate: The interest rate for Bank of Baroda MSE Capex Loan and Capex Card is linked to MCLR/Repo rate. However, Bank of Baroda has not disclosed the interest rates for its business loan scheme.
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Bank of Baroda SME Loan Pack
Purpose: Bank of Baroda SME Loan Pack enables SME units to avail funds for their working capital (both fund based and non-fund based) and capital expenditure requirements within the overall limit sanctioned to loan borrower.
Loan Amount: Rs 10 crore or 4.5 times the borrower’s tangible net worth, as per the last audited balance sheet, whichever is lower.
Loan Tenure: Up to 7 years
Margin: 25%
Interest Rate: The interest rate for Bank of Baroda MSE Capex Loan and Capex Card is linked to the Repo rate. However, Bank of Baroda has not disclosed the interest rates for its business loan scheme.
Bank of Baroda Composite Loans
Purpose: Bank of Baroda Composite Loans enables MSME units to procure funds to service their capex and working capital requirements.
Loan Amount: Up to Rs 1 crore
Loan Tenure: The loan tenure for Bank of Baroda Composite Loans are as follows:
- Minimum 3 years to maximum 10 years, which can be extended, with initial holiday of 1 year to 18 months.
- Minimum 3 years to maximum 10 years, with initial holiday of 1 year to 18 months, both for principal and interest.
Margin: 25%
Interest Rate: The interest rate for Bank of Baroda Composite Loans is linked to the Repo rate. However, Bank of Baroda has not disclosed the interest rates for its business loan scheme.
Security: The borrower need not submit any collateral or third party guarantee for availing Bank of Baroda Composite Loans.
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Bank of Baroda Laghu Udyami Credit Card
Purpose: Bank of Baroda Laghu Udyami Credit Card enables small business units, retail traders, artisans, small-scale industrial units, village-based industries, professionals and self-employed persons, etc. procure funds to meet their credit requirements
Loan Amount: Up to Rs 10 lakh
Loan Tenure: The loan tenure for Bank of Baroda Laghu Udyami Credit Card is 3 years, subject to the bank’s internal annual review based on the operations/conduct of the borrower’s account
Margin: 25% for loans ranging from Rs 50,001 to Rs 10 lakh (Nil for loans up to Rs 50,000)
Interest Rate: The interest rate for Bank of Baroda Laghu Udyami Credit Card is linked to the Repo rate. However, Bank of Baroda has not disclosed the interest rates for its business loan scheme.
Bank of Baroda Bill/Invoice Discounting Under Value Chain Finance
Purpose: Bank of Baroda Bill/Invoice Discounting Under Value Chain Finance enables vendors/sub-vendors of corporates having good financial discipline avail funds by way of bill/invoice discounting. Vendors or suppliers of manufacturing/service enterprises, except those involved in gems & jewellery, agriculture-based, real estate sectors and NBFCs, are eligible to avail this business loan scheme.
Loan Amount: Up to Rs 10 lakh
Loan Tenure: Up to 90 days
Margin: 10% of the invoice/bill amount
Interest Rate: The interest rate for Bank of Baroda Bill/Invoice Discounting Under Value Chain Finance is linked to the MCLR Repo rate. However, Bank of Baroda has not disclosed the interest rates for its business loan scheme.
Security: The lender has minimal or no requirement of security/guarantee for this loan scheme. However, Bank of Baroda has not disclosed the exact security/guarantee needed to avail this loan scheme.
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Eligibility Criteria for Bank of Baroda Business Loans
The business loan eligibility criteria for availing Bank of Baroda Business Loans are as follows:
For Bank of Baroda SME Medium Term Loan
- SMEs entities are eligible for availing this loan
- All other entities with annual sales turnover of Rs 1 crore to Rs 250 crore are eligible for availing this business loan scheme. New projects having estimated sales turnover of up to Rs 250 crore in the first year of commercial operations and real estate projects having project costs of up to Rs 50 crore are also eligible for Bank of Baroda SME Medium Term Loan
- The business unit should have a satisfactory credit rating without continuous decline for last 3 years. The SME unit should also have satisfactory credit rating for 4 half years for accounts where the rating is done on half yearly basis
- Satisfactory financial performance as per their latest financial documents, with negative variance of not more than 10%
- The SME unit should have satisfactory dealings with the lender for minimum 3 years without any major audit or inspection irregularities
For Bank of Baroda SME Short Term Loan
- SME business units (except for those in real estate, power, education or IT sector) are eligible for availing this loan
- The business unit should have a satisfactory credit rating (BOB-5 and above) without continuous decline for last 3 years. The SME unit should also have satisfactory credit rating for 4 half years for accounts where the rating is done on half yearly basis
- Satisfactory financial performance as per their latest financial documents
- The SME unit should have satisfactory dealings with the lender for minimum 3 years without any major irregularities during audit or inspection
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For Bank of Baroda SME Gold Card Loan
All SMEs with annual sales turnover up to Rs 250 crore are eligible provided they fulfil the following criteria:
In case of existing accounts:
- The account is within the standard category for last 2 years
- The SME’s obligor credit rating is “BoB-5” and above
- Working capital limits of Rs 25 lakh and above
In case of takeover accounts:
- The SME’s obligor credit rating is “BoB-5” and above
- No deviation is allowed in takeover norms when taking over the account
- Working capital limits of Rs 25 lakh and above
- Eligible for the facility after 1 year of takeover of the A/c
Bank of Baroda Digital MSME Loan
- Any individual engaged in non-farm entrepreneurial activity across India is eligible for availing.
- However, individuals who have been issued credit cards like the Baroda Artisans Credit Card, Baroda Laghu Udyami Credit Card, BOBCARD etc. (except cards for consumption needs) are not eligible to avail this loan.
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Bank of Baroda MSE General Credit Card Loan
- MSME borrowers (Regulatory) and SME (Expanded) rated BOB-5 and above are eligible for availing the loan
- The manufacturing/service sector units should be at least 2 years old, with the account running with satisfactory dealings for minimum last 1 year and no adverse features reported in conduct of the business unit’s account.
Bank of Baroda MSME Capex Loan and Capex Card
- MSME borrowers (Regulatory) and SME (Expanded) rated BOB-5 and above are eligible for availing this loan
- The manufacturing/service sector units should be established for minimum 2 years
- The account should be running for at least 1 year with satisfactory dealings and no adverse features reported in conduct of the borrower’s account
Bank of Baroda SME Loan Pack
- SME borrowers, both in regulation and expanded) are eligible for availing this loan
- Borrowers dealing exclusively with Bank of Baroda are eligible for availing this loan
Bank of Baroda Laghu Udyami Credit Card
All existing BOB customers in the MSE sector, who are dealing with the lender for last 3 years and having a loan or operative limit up to Rs 10 lakh are eligible for availing this loan.
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Bank of Baroda Bill/Invoice Discounting Under Value Chain Finance
The Eligibility criteria foe availing Bank of Baroda Bill/Invoice Discounting Under Value Chain Finance are as follows:
- Vendors or suppliers of manufacturing/service enterprises, except those involved in gems & jewellery, agriculture-based, real estate sectors and NBFCs, are eligible to avail the loans
- For Vendor Invoice/Bill Discounting (large manufacturer or service provider):
- Minimum Turnover: Rs 200 crore
- Maximum Turnover: Rs 2,000 crore
- External Credit Rating: BBB and above
- Positive operating profitability: Minimum last 3 years
- Minimum tenure of business: 5 years
- For Vendor Invoice/Bill Discounting (small manufacturer or service provider)/(sub-vendors):
- Minimum turnover: Rs 50 crore
- Maximum turnover: Rs 200 crore
- Positive operating profitability: Minimum last 2 years
- Minimum tenure of business: 3 years
- CMR Rating from 1 to 5
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Documents Required for Bank of Baroda Business Loans
The business loan documents required by Bank of Baroda for its loan schemes are as follows:
For Bank of Baroda Digital MSME Loan
- PAN and GSTN username & mobile no.(In case registered with GSTN)
- KYC details of business and business promoter/partner/proprietor
- Latest ITR 3/5/6 and ITR 4 (Minimum 1 year and maximum 3 years)
- Last 6 months bank statement
- Business registration details / Udyam Registration details,
- Details of existing loan(s)