Bank of Baroda Business Loan

Securing necessary financing is a prerequisite for running or expanding your business. Whether you are starting a new business or planning to scale up your existing business, a business loan is all you need. Among the ample financial institutions that provide business loans, the Bank of Baroda Business Loan stands out due to its competitive interest rates and diverse loan offerings. This article provides all the information about the Bank of Baroda business loan, its eligibility criteria, documentation, and everything else that you need to know.

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BOB Business Loan Interest Rate, Fees & other charges

Particulars	Charges
Interest Rate	17% p.a.
Processing Fee	2% of the disbursed amount
Prepayment Charges	4% of the outstanding loan amount

Composite loan

Interest rates are based on competitive prices linked with repo rates or MCLR.

Baroda Vidyasthali Loan

Interest rates are based on competitive prices linked with repo rates or MCLR.

Digital MSME loan

The interest rates, processing fee, and other upfront charges are charged as per the policy of the bank.

Features & Benefits

Bank of Baroda offers a diverse range of loan products under “Bank of Baroda MSME Banking” to secure funding for a company’s working capital requirements or long-term investments. Some of its prominent loan offerings include the Baroda Vidyasthali Loan, Composite loans, and digital MSME working capital loans among others.

These loans come with several benefits such as:

Up to INR 5 Crore amount assistance for funding working capital needs
Easy accessibility of loans as they can be acquired digitally from all the Bank of Baroda platforms including ‘bob World’ app, BOB World Internet, and Bank of Baroda’s official website.
A flexible repayment tenure which is annually reviewed in the case of MSME working capital loans and a maximum repayment tenure of 10 years for a composite loan.
No collateral or third-party guarantee is required while availing a composite loan.

Bank of Baroda Business Loan EMI calculator

Eligibility Criteria to acquire Business Loan

The borrowers that are eligible to avail Bank of Baroda MSME Loan are:

Micro Enterprise:

Maximum investment in plant and machinery or equipment: Rs. 1 crore.
Maximum turnover: Rs. 5 crore.

Small Enterprise:

Maximum investment in plant and machinery or equipment: Rs. 10 crore.
Maximum turnover: Rs. 50 crore.

Medium Enterprise:

Maximum allowable investment in plant and machinery or equipment: Rs. 50 crore.
Maximum allowable turnover: Rs. 250 crore.

Manufacturing Enterprises:

These enterprises are involved in the manufacturing or production, processing, or preservation of goods.
The criteria for classification are based on their investment in plant and machinery and turnover as mentioned earlier.

Service Enterprises:

These enterprises are engaged in providing or rendering various services.
The criteria for classification are determined by their investment in equipment and turnover, as specified above.

Also Read: Business Loan eligibility criteria in Detail

Business Loan Documents Required

The document requirement might differ depending upon the loan product one is availing. However, the documents generally required for most of the loan variants are provided below:

Passport sized photograph
KYC documents
Copies of Passport/Aadhar Card or any other address proof
Audited balance sheet along with profit and loss statement for last 3 years or as mentioned in the credit facility.
Entity Proof (Partnership deed/ Shops and Establishment Certificate/Certificate of Incorporation)
GST Registration Certificate/UDYAM Certificate wherever applicable.
Copies of ITR for the last 3 years
Copies of Quotations/Estimates towards proposed term loan or demand loan.
Details of the Net worth of the directors of the company/partners and guarantors duly filed in form 135 of Bank of Baroda and signed along with documentary proof thereof
Last 6 account statement copies from the existing bank.

How to apply for a Business Loan in the Bank of Baroda?

Online Application Process

Visit the official website of the Bank and select ‘Business’
Click on the MSME tab on the website
Select the desired loan product from the drop-down menu
An ‘Apply Now’ option will appear on the right, click on it and choose the ‘Submit lead’ option to start your loan application process.

Offline Application Process

You can apply for a Bank of Baroda Business Loan by visiting the nearest bank branch. Fill in the business loan application form along with all the necessary documents and wait for the disbursal after the loan gets approved.

Factors Responsible for Business Loan

The interest rates on the MSME loans are charged as per the policy of the bank. From an applicant’s perspective, it is highly essential to avail a business loan at a good interest rate and flexible repayment tenure.

As the loan amount is usually high in the case of business loans, there are several factors that affect the Bank of Baroda Business Loan interest rates. These are:

The Credit Score of the business owner and the company
Existing relationship with the bank
Business stability
Profit and Annual Turnover of the business
Age of the applicant

Frequently Asked Questions

What should be my CIBIL Score to get an MSME loan?

Generally, a CIBIL score of 750+ is required to get an MSME loan.

What is the repayment tenure for the Bank of Baroda composite loan?

The minimum repayment tenure is 3 years and the maximum repayment tenure is 10 years for the Bank of Baroda composite loan. However, the maximum repayment period can be extended.

The Bank of Baroda composite loans are provided for what purposes?

The Bank of Baroda composite loans to fund the needs of fixed capital investment or working capital requirements for your business.

What is the maximum loan amount that can be availed through a Digital MSME Loan?

A maximum loan amount of INR 5 Crore can be availed through a digital MSME loan.

What will I need while applying for a Mudra Loan?

You might need the following while applying for a business loan:

In case you are an existing customer of Bank of Baroda, your current/savings account number and mobile number linked to it
In case you are not an existing customer of Bank of Baroda, your Aadhar number and access to the mobile number linked to it.
PAN Number
Udyam Registration Certificate

Also Read: What Is Mudra Loan?

What are the documents required for a business loan from Bank of Baroda?

The documents required for a business loan from the Bank of Baroda are listed below:

Passport sized photograph
KYC documents
Copies of Passport/Aadhar Card or any other address proof
Audited balance sheet along with profit and loss statement for last 3 years or as mentioned in the credit facility.
Entity Proof (Partnership deed/ Shops and Establishment Certificate/Certificate of Incorporation)
GST Registration Certificate/UDYAM Certificate wherever applicable.
Copies of ITR for the last 3 years
Copies of Quotations/Estimates towards proposed term loan or demand loan
Details of the Net worth of the directors of the company/partners and guarantors duly filed in form 135 of Bank of Baroda and signed along with documentary proof there of.
Last 6 account statement copies from the existing bank.

Bank of Baroda Business Loan

BOB Business Loan Interest Rate, Fees & other charges

Composite loan

Baroda Vidyasthali Loan

Digital MSME loan

Table of Contents

Features & Benefits

Bank of Baroda Business Loan EMI calculator

Eligibility Criteria to acquire Business Loan

Micro Enterprise:

Small Enterprise:

Medium Enterprise:

Manufacturing Enterprises:

Service Enterprises:

Business Loan Documents Required

How to apply for a Business Loan in the Bank of Baroda?

Online Application Process

Offline Application Process

Factors Responsible for Business Loan

Frequently Asked Questions

What should be my CIBIL Score to get an MSME loan?

What is the repayment tenure for the Bank of Baroda composite loan?

The Bank of Baroda composite loans are provided for what purposes?

What is the maximum loan amount that can be availed through a Digital MSME Loan?

What will I need while applying for a Mudra Loan?

What are the documents required for a business loan from Bank of Baroda?

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