| BANKS/NBFCs | INTEREST RATES | LOAN TENURE | PROCESSING FEES |
| Standard Chartered Bank | 15%-18% (p.a) | 1-4 Years | Upto 2% |
| Deutsche Bank | 16%-18% (p.a) | 1-4 Years | Upto 2% |
| HDFC Bank | 15%-18% (p.a) | 1-4 Years | Upto 2% |
| ICICI Bank | 15%-18% (p.a) | 1-4 Years | Upto 2% |
| Kotak Mahindra Bank | 15%-18% (p.a) | 1-4 Years | Upto 2% |
| Axis Bank | 15%-18% (p.a) | 1-4 Years | Upto 2% |
| RBL | 15%-18% (p.a) | 1-4 Years | Upto 2% |
| IDFC First bank | 15%-18% (p.a) | 1-4 Years | Upto 2% |
| Yes Bank | 16%-18% (p.a) | 1-4 Years | Upto 2% |
| Aditya Birla Finance Limited | 16%-19% (p.a) | 1-4 Years | Upto 2% |
| Tata Capital | 16%-19% (p.a) | 1-4 Years | Upto 2% |
| Hero Fincorp Ltd | 16%-19% (p.a) | 1-4 Years | Upto 2% |
| Bajaj Finance ltd | 16%-19% (p.a) | 1-4 Years | Upto 2% |
| NeoGrowth | 16%-19% (p.a) | 1-4 Years | Upto 2% |
| U Gro | 16%-19% (p.a) | 1-4 Years | Upto 2% |
Business Loan in Vadodara: Vadodara, also known as Baroda, stands as a major city in Gujarat, India, renowned for landmarks like the Laxmi Vilas Palace, once the residence of the Gaekwad dynasty.
Over the last 10-15 years, cities nationwide have experienced transformative changes fueled by robust GDP growth, infrastructure advancements, and the evolution of the services sector. Vadodara is no exception. OneNDF is ready to assist with business loan in Vadodara, contributing to the city’s economic progress and development.
Economy of Vadodara
Vadodara’s economy revolves around key sectors such as Fertilisers, Cotton textiles, Machine tools, Pharmaceuticals, chemicals, Biotechnology, Engineering, Tobacco, Fisheries, glass, and Dairy, with agriculture playing a vital role.
The region cultivates crops like Tobacco, Groundnut, Wheat, Grams, Jowar, Oilseeds, and Sugarcane, establishing itself as a leading producer of pulses, fruits, and flowers in Gujarat.
Additionally, Vadodara hosts over 35% of India’s power transmission and distribution equipment manufacturers, along with around 800 ancillaries supporting the significant players in the power sector manufacturing and engineering industry.
Types of Business Loan in Vadodara
There are various types of Business Loans offered in Baroda, some of which include:
| Business Loan Type | Uses |
| Unsecured Business Loans | These are term loans used to finance long-term or short-term business needs and can be used for Business Expansion/Business Operations. |
| Working Capital Loans | They are used to finance short-term business needs and can be used for cash flow management, Business Operations, and to fulfil short-term liabilities. |
| Secured Business Loans | They are usually taken against the security of collateral and used for financing long or short-term business needs. They usually have lower interest rates than an unsecured business loan due to collateral security. |
| Loans against Property | Business Loans against Property are taken against the security of commercial, industrial, or residential property and may have a higher loan amount sanctioned based on the market value of the property and the LTV ratio. |
| Equipment Loans | Equipment Loans are usually taken to upgrade machinery or to buy new equipment. |
| Bill Discounting/Invoice Discounting | Bill Discounting is usually used to finance the working capital needs of a business. |
Business Loan EMI Calculator
Purpose of Business Loan in Vadodara
- Frequently, small enterprises in Vadodara, such as dairy farms, encounter a shortage of working capital for their day-to-day activities. To address this gap until their assets generate sufficient revenue, they choose short-term loans to meet immediate operational needs.
- For a power sector manufacturing and engineering industry in Baroda seeking a significant loan, maintaining a positive credit history is imperative. Individuals or proprietors frequently choose short-term loans and prioritise timely repayments, as this consistent practice contributes to improving their overall creditworthiness.
- Expanding operations in the petrochemical industry requires a strategic choice between purchasing land and leasing property. Businesses, driven by growth projections, may choose multiple expansions when they recognize scaling up as a pivotal and timely opportunity. In pursuit of such endeavours, they may consider securing business loans from OneNDF.
Eligibility Criteria for Business Loan in Vadodara
To avail a Business Loan in Baroda, the borrower must fulfil the following eligibility criteria:
| Particulars | Requirement |
| Citizenship | The business owner must hold an Indian citizenship. |
| Age | The borrower must be at least 21 years old, and the maximum age must not be more than 65 years old at the time of loan maturity. |
| Business Vintage | The business must be at least 2 years old. |
| Credit Score | The promoter and the business must have a good credit score of over 650. The credit score of co-applicants is also checked wherever applicable. The credit score has a crucial role to play in determining the creditworthiness of the borrower. It determines the limit of the lender’s credit exposure based on the repayment history of the business. |
Documents required for a Business Loan in Vadodara
The documents required for a Business Loan in Vadodara may vary based upon the type of business loan. However, the following documents are usually sought by banks and NBFCs for a small business loan in Vadodara:
| KYC Documents of the owner and the business: The foundation of your journey. For both you and your business, we require: | 1. Personal Identification: PAN Card, Aadhaar Card, Voter’s ID Card, Driving License, etc. 2. Address Proof: Passport, Utility Bills, Lease Agreement, Trade License, etc. 3. Business Legitimacy: GST Registration, UDYAM Registration, Business PAN Card, Licenses issued by Municipalities, Registration certificates from relevant authorities, etc.. |
| Financials: Your economic blueprint, essential for a tailored loan strategy, includes: | 1. Narratives: ITR filings for the last 2 years, complete with Income Computation. 2. Business Health Check: Audited Balance Sheets and Profit & Loss Statements for the last 3 years, certified by a CA. Bank Statements from the last 2 years, revealing your financial journey. 3. License issued by Municipalities, GST Registration Certificate, Registration certificates by appropriate authorities, etc |
| Proof of Ownership or Collateral Documents (In case of secured loans) | 1. Proof of ownership or collateral documents, including property deeds, sale agreements, possession letters, and asset valuation (if applicable). |
Interest rates and Charges on a Business Loan in Vadodara
The interest rates on a Business Loan in Vadodara can vary from lender to lender. However, here is an overview of the interest rates and charges on various types of business loan in Vadodara:
| Business Loan Type | Interest Rate |
| Unsecured Loans | Starting from 16% p.a. |
| Working Capital Loans | Starting from 9% p.a. |
| Secured Business Loans | Starting from 8.85% p.a. |
| Loans against Property | Starting from 8.85% p.a. |
| Equipment Loans | Starting from 9% p.a. |
| Bill Discounting/Invoice Discounting | As per the financial institution |
Interest rates by various banks and NBFCs for Loan Against Property in Vadodara
| Banks / NBFCs | Interest Rates | Tenure | Processing Fees |
| HDFC Bank | Starting 8.80% | Maximum 15 years | 0.50% |
| ICICI Bank | Starting 9% | Maximum 15 years | 0.75% |
| Kotak Mahindra Bank | Starting 9% | Maximum 15 years | 0.75% |
| Axis Bank | Starting 9% | Maximum 15 years | 0.50% |
| IDFC Bank | Starting 9% | Maximum 20 years | 1% |
| Standard Chartered Bank | Starting 9% | Maximum 15 years | 0.50% |
| Deutsche Bank | Starting 9% | Maximum 15 years | 0.75% |
| Bajaj Finance | Starting 9.5% | Maximum 15 years | 1% |
| L&T Finance | Starting 9.5% | Maximum 15 years | 1% |
| India Bulls | Starting 10% | Maximum 15 years | 1% |
| RBL Bank | Starting 9% | Maximum 15 years | 1% |
| Hero Fincorp | Starting 10.50% | Maximum 15 years | 1% |
| HDB Finance | Starting 9.5% | Maximum 15 years | 1% |
| HSBC | Starting 9% | Maximum 15 years | 0.50% |
| Shinhan Bank | Starting 9% | Maximum 15 years | 0.50% |
| AU Small Finance Bank | Starting 9.25% | Maximum 15 years | 1% |
How to apply for a Business Loan in Vadodara through OneNDF
The process of applying for a Business Loan in Vadodara may differ based on the type of business loan availed.
Many banks at times provide business loans specifically catering to the business cash flow requirements of MSMEs, however, given the lack of knowledge about business loans offered and the opaqueness in the loan application process, small businesses are often unable to get any financial support and end up running from pillar to post to get a business loan.
To apply for a business loan on OneNDF, please follow these streamlined steps:
1. Sign-Up Process:
- Click on the “Sign-up” button to begin your journey with OneNDF or Click here
- Enter your mobile number to receive a One-Time Password (OTP) for verification.
2. Business Authentication:
- After signing up, provide your PAN number. This step is crucial for verifying your business identity.
3. Registration and Profile Completion:
- Complete the registration process to build your profile on the platform. A comprehensive profile increases the success rate from initial login to loan sanction.
4. Credit Score Check:
- We will conduct a soft-pull of your credit score. This process does not generate an inquiry, thus not affecting your credit score.
5. Financial Information:
- You can upload the Downloaded ITR for your business (detailed PDF) or you can authenticate the credentials for the ITR portal and we will fetch this information and give you a snapshot . This helps in assessing your business’s financial stability.
6. GST Returns:
- Authenticate the GST credentials. Loans are provided to MSME clients, including both self-employed professionals and non-professional business owners based on their GST returns. ((This information can serve as a quick snapshot to help you understand your business better. It allows you to identify your top suppliers and buyers and monitor your returns effortlessly with just a click, eliminating the need to rely on your accountant for this data.))
7. Banking:
- Provide banking details for the last 12 months. This helps in analysing your banking turnover and financial transactions.
Upon completing these steps, we will tailor loan offers from lenders that best fit your requirements. Additionally, a comprehensive profile of your business will be created. This profile not only helps you understand your current business health but also provides recommendations on improving key financial ratios to maintain a healthy bottom line.
FAQs
What factors should businesses consider when deciding between purchasing land or leasing property for expansion in the petrochemical industry?
Businesses should strategically consider factors like growth projections, scalability, and timing when deciding between purchasing land or leasing property for expansion in the petrochemical industry.
What is the eligibility criteria for business loans in Vadodara offered by OneNDF?
To avail a business loan in Vadodara, the borrower must meet criteria including Indian citizenship, age between 21 to 62 years, a business vintage of at least 2 years, and a good credit score of over 650 for both the promoter and the business.
What types of business loans does OneNDF offer in Vadodara?
OneNDF offers various business loans, including unsecured loans, working capital loans, secured business loans, loans against property, equipment loans, and bill discounting.
How can businesses apply for a business loan in Vadodara through OneNDF?
Businesses can initiate the online application process on OneNDF’s official website by registering, authenticating their identity via OTP, uploading necessary documents, and submitting the loan application. Subsequently, the platform links them with appropriate lenders offering competitive interest rates.
What documents are required for a business loan for Pharmaceuticals in Vadodara?
For obtaining a business loan in Vadodara within the pharmaceutical sector, necessary documentation may comprise KYC documents, financial records (ITR, balance sheets), evidence of ownership or collateral (for secured loans), and pertinent business registrations.
