Bank of Baroda Business Loan

Features and Benefits of Bank of Baroda Business Loan

Given below are the features and benefits of the Bank of Baroda Business Loan: 

• Reasonable Rates of Interest: Bank of Baroda provides a reasonable and competitive interest rate. The interest rate ranges from 7.50% to 13.50% for self-employed professionals and business entities. 
• Loan to Suit various Business Types: For MSMEs to corporates and local business enterprises, the Bank of Baroda Business Loan is available for all as per their requirements.
• Loan for a Wide Range of Purposes: The Bank of Baroda Business Loans can be used for several purposes, from modernising business establishments and purchasing the latest machinery and new business units to working capital and more. 
• Loan for Different Customer Categories: Bank of Baroda Business Loans can be availed by both self-employed professionals and non-professionals, including individuals and business entities. 
• Hassle-free Loan Application: The Bank of Baroda Business Loan comes with minimal documentation and a convenient online process.
• Quick Disbursal of Loan: Bank of Baroda won’t make you wait long to receive your business loan amount. Once your loan application is verified and approved, they instantly disburse the loan into your account.

Bank of Baroda Business Loan Eligibility Criteria

The eligibility criteria for applying for a Bank of Baroda Business Loan are as follows:

• The minimum age at the time of applying for the loan application must be 18 years.
• The maximum age is up to 65 years.
• You must have business stability and a good repayment history.
• The CIBIL score should at least be 750 or above.
• The borrower must not have any history as a defaulter with any other financial organisation.

Bank of Baroda Business Loan Fees and Charges

The Bank of Baroda charges minimal processing fees for a business loan application. While prepayment is allowed to borrowers, fees are charged for the ones prepaid on or before 12 months. Check out the details of the processing fees and charges for the Bank of Baroda Business Loan below:

• The processing fee for a business loan application is 2% of the approved loan amount.
• BOB charges 2% of the loan amount for prepayment on or before 12 months.
• There are no prepayment charges post the 12 months limit.

Bank of Baroda Business Loan Interest Rates

Look into the table below to know the Bank of Baroda Business Loan interest rate across various loan types:

Note: The interest rate and charges are subjected to market conditions. It depends on the area: rural/urban/metropolitan.

The minimum and maximum loan amounts that applicants can avail also depends on the location they are from as illustrated in the table below. 

Factors Affecting Bank of Baroda Business Loan Interest Rates

Get to know the factors that affect the Bank of Baroda Business Loan interest rates:

• Business Loan Amount: The interest rate on a business loan is applicable to the entire loan amount. Bank of Baroda offers affordable interest rates to eligible applicants starting from 7.25%. 
• CIBIL Score: A good CIBIL score is required to get the best deal on a business loan at good interest rates. Lenders will deem you as a more trustworthy borrower if your CIBIL is 750 and above. On the flip side, a poor interest rate would either lead to high-interest rates or application rejection.  
• Revenue and Business Profitability: If you are running a stable business, then the enhanced capacity to generate profit can help you in getting a business loan at an affordable interest rate. However, if your business is not making enough profit, you will most probably get a loan at a higher interest rate.
• Business Experience: The business company must have two years of experience to get a loan at a reasonable rate. However, not having much experience can lead to a higher interest rate.

Types of MSME Schemes from Bank of Baroda

Bank of Baroda offers several types of business loans to applicants across industries, catering to various purposes. The types of MSME Schemes from the Bank of Baroda can be, therefore, categorised as per applicant type and the purpose for the loan. 

As Per Applicant Type

As Per Loan Purposes

Documents Required for Bank of Baroda Business Loan

Along with the business loan application form, an applicant has to submit the following documents:

• Two recent passport size photographs.
• Copy of Aadhaar card, PAN card, Voter ID card, and Passport as identity proof.
• Copy of Driving Licence, Aadhaar card, PAN card, Voter ID card, and Passport as address proof.
• Address proof of your business address.
• Business PAN card.
• A copy of the partnership deed, a registration certificate by RBI, SEBI, etc.
• A copy of the last two years’ income tax return.
• Bank statement for last six months.
• Business establishment proof.
• Write up mentioning your loan type and credit profile.
• Additional documents as asked by BOB.

How Does the EMI Calculation Work for Bank of Baroda Business Loans?

You can use the online calculator to calculate your business loan EMI. You just have to enter the loan amount, the loan tenure and the rate of interest. This EMI calculator is very easy to use. It will give you instant results, saving you time and effort. 

Manually, you can calculate your monthly business loan EMI as follows: 

EMI = P × r × (1 + r)n/((1 + r)n – 1) 

Here,

• P is the principal loan amount
• n is the tenure for repayment of loan
• r is the rate of interest on your loan amount

How Does Bank of Baroda Compare with Other Lenders?

Here is a tabular representation showing the comparison between Bank of Baroda and other lenders on the basis of interest rates offered for business loans.

Bank of Baroda Business Loan Customer Care Number

To get any information regarding Bank of Baroda Business Loan requirements, queries, or other issues, feel free to contact the following toll-free number.

• Bank of Baroda Business Loan Toll-Free Number: 1800 180 MSME or 1800 180 6763
• Bank of Baroda Toll-Free Number: 1800 258 44 55 / 1800 102 44 55
• Give a Missed Call: 8467001111
• Send an SMS as: SMEreg to 8422009988