Beginning or expanding a business is exciting- and requires the appropriate financing. The Bank of Baroda business loan can assist you there. Bank of Baroda has more than 132 million customers and it has a wide network in India making it one of the most trusted public sector banks. It does not matter whether you are an SME owner or a startup founder; the bank provides easy loans with quick approval and flexible repayment. Their business loans are structured to facilitate all working capital to the purchase of equipment. In this blog, we are going to discuss why a business loan with the bank of baroda is the right option to take in your business life.
What is Bank of Baroda Business Loan?
Bank of Baroda business loan is a financial solution that assists entrepreneurs, startups and MSMEs to fulfil their business requirements. The bank has a variety of loan products with easy processes and competitive interest rates whether they are to be used in expanding operations, buying equipment or in running daily costs.
Bank of Baroda MSME Loan is a special loan that is designed to suit small and medium enterprises, which means that it is fast to access and requires less documentation. In case of new ventures, the Bank of Baroda startup loan is the first step towards starting up and expanding.
The bank also helps women entrepreneurs with its business loan for women bank of Baroda which has special schemes with lesser interest rate and less stringent repayment terms. Bank of Baroda offers more affordable financing of business with trusted services and coverage across the nation.
Key Take-Aways
- This loan suits any business/profession independently with or without hired labour such as persons in the medical profession, lawyers, engineers, contractors, consultants, electricians, hairdressers, handicrafts artisans, etc., are eligible.
- To get a business loan, a DP note, with a letter of hypothecation of equipment with the mortgage of business premises, has to be submitted to the bank.
- The maximum limit of the loan is Rs. 5 Lakhs for businessmen and professionals out of which the working capital should not exceed Rs. 1 Lakh.
- A limit of Rs.10 Lakhs with a sub-limit not exceeding Rs. 2 Lakhs for working capital is applicable for professionally qualified medical practitioners setting up practice in semi-urban and/or rural areas.
Bank of Baroda Business Loan Details
| Particulars | Details |
|---|---|
| Interest Rates | 7.25% – 13.50% |
| Minimum Amount | – Rs.2 lacs (Rural/Semi Urban Branches) – Rs.5 lacs (Urban / Metro Branches) |
| Maximum Amount | – Rs.1 Crore (Rural Branches) – Rs.3 Crore (Semi Urban Branches) – Rs.5 Crore (Urban Branches) – Rs.10 Crore (Metro Branches) |
| Loan Repayment Tenure | 12 months to 36 months |
| Maximum Loan Tenure | 5 years (60 months) |
| Processing Fee | Nil |
| Pre-payment Charges | – Up to 12 months: 2% – More than 12 months: Nil |
What are the Key Benefits of Bank of Baroda Business Loan?
- Benefits to purchase any necessary equipment, like a personal computer (PC) for professional use.
- Funds can be used for the repair and renovation of existing equipment.
- Simple application procedures.
- Acquisition and repairs to business premises, or tools.
- To generate working capital.
- All the accounts rated as A+ will be entitled to loans at a lower interest rate.
- Avail of loans at all branches of Bank of Baroda.
- All complaints and grievances can be reported to the regional zone offices or directly to the Central office.
- You can prepay part of your loan anytime after paying 1 % prepayment charges
- You can foreclose your entire Business loan anytime after paying 1 EMI at foreclosure charges – No prepayment charges
- Bank of Baroda has over 5,373 branches in India where you can avail service
What are the Eligibility Criteria for the Bank of Baroda Business Loan?
The two most basic and important aspects like your loan repayment ability and your repayment history are assessed as part of the eligibility criteria for the Bank of Baroda business Loan process.
The following is a list of candidates eligible to apply for a BOB business loan :
- Individuals
- Proprietorships
- Partnership Firms
- Co-operative societies
- Age: Age is of significant importance as it determines your repayment capacity. As per the eligibility criteria of your business loan scheme, the age of the borrower is not to be more than 50 years.
- Credit score/CIBIL score: CIBIL score or credit score must be more than 750. However, your repayment history, loans, etc. will be taken into consideration.
- Business sturdiness: If your business is stable and has the potential to grow only then you will be able to give the money back. To assess your business’s strength, the bank looks into the growth in your business’s sales.
What are the Documents Required for the Bank of Baroda Business Loan?
The following are the documents required for a Bank of Baroda business loan:
- Duly filled application form
- 2 passport-sized photographs
- Business Plan/Project Report
- 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.
- Copy of last 2 years’ income tax returns
- Project reports
- Last 6 months’ bank statement
- Business address, vintage and establishment proofs
Why is Finline your ultimate choice for Project Report for Bank Loan?
When you intend to start or expand your business, the Bank of Baroda business loan is a sure and reachable option. Bank of Baroda makes business financing convenient with its flexible repayment terms, competitive interest rates, and special loan products to MSMEs, startups, and women entrepreneurs.
In the above list, a business plan—also known as a project report—is a crucial document when applying for a bank loan. The bank uses this to evaluate the feasibility, risks, and potential of your business idea.
That’s where Finline is. You can create a compelling, bank-ready project report in less than 10 minutes—in your preferred language. Best of all, our reports are accepted by all public and private sector banks in India, including Bank of Baroda.
Click now to create your project reports for bank loans and take the next step for your business.