Bank of Baroda Business Loan

Bank of Baroda offers an impressive range of business loans and credit facilities to Micro, Small & Medium Enterprises (MSMEs) and corporate entities. You can get a loan up to Rs. 200 Crores at competitive interest rate starting from 6.75% p.a. and flexible repayment tenure.

Loan amount	Up to Rs. 200 Crores
Tenure	Flexible & depends on loan type
Rate of interest	6.75% p.a. onwards
Types	Secured and unsecured business loans
Type of facility	Term loan as well as overdraft

Additional Info: Also check Bank of Baroda Balance Check Number

Bank of Baroda Business Loan Features
Why Apply for Bank of Baroda Business Loan?
Bank of Baroda Business Loan Interest Rates
Bank of Baroda Business Loan EMI Calculation
Bank of Baroda Business Loans Types & Eligibility
How to Apply for Bank of Baroda Business Loan on fastmudra?
Bank of Baroda Business Loan Charges
Bank of Baroda Business Loan - Customer Care

Business Loans are available to all sectors such as manufacturing, services sectors, traders, and exporters.
Collateral free loans are available up to Rs. 200 Crores to the manufacturing and service sectors under the CGTMSE scheme.
Loans are available under all Government-sponsored schemes.
Attractive rates of interest linked to the Marginal Cost of Funds based Lending Rate (MCLR) of the bank.

Additional Reading: How to get loans for bad credit?

As Bank of Baroda is a nationalised bank, it offers all the Government schemes such as Prime Minister Mudra Yojana and loans under the Stand-Up India programme and CGTMSE guarantee.
It is one of the member lending institutions that offer PSB loans in 59 minutes.
Bank of Baroda offers attractive and competitive rates of interest on its Business Loans.
It follows a transparent procedure, thereby making it easy for business enterprises to apply for Bank of Baroda Business Loan.
Subsidy-based loans available
Facility to apply online
Easy documentation procedure
Reasonable processing fees

The interest rates for Bank of Baroda business loans are linked to the bank’s 1-year Marginal Cost of Funds based Lending Rate (MCLR) or Baroda Repo Linked Lending Rate (BRLLR) or Base Rate (BR), which are as follows:
- 1-year MCLR w.e.f from 12.11.2021: 7.30%.
- Baroda Repo Linked Lending Rate (BRLLR) w.e.f.07.10.2021: 6.50%.
- Base Rate (per annum) w.e.f. 01.07.2020: 8.15%.
- Some business loans also involve a Strategic Premium (SP) of 0.25%.
Bank of Baroda interest rate on Business Loans depends on various factors:
- The amount of loan.
- The type of scheme availed of.
- The category of business enterprise such as micro, small, and medium.
- The internal credit rating.
- The value of collateral available to the bank.

Bank of Baroda offers facilities to calculate your Business Loan EMI. Click on the Calculate EMI option and enter the loan amount, interest rate, and loan tenure to get your Business Loan EMI.

You can also use the Business Loan EMI Calculator available on our website. Using this calculator is easy. Submit details like loan amount, rate of interest, and repayment tenure to arrive at the EMI amount. This calculator provides the loan amortisation schedule as well. It gives you the year-wise breakup of your loan repayments.

Here is an example of EMI calculation using fastmudraEMI Calculator:

Loan amount required: Rs. 50 Lakhs

Applicable rate of interest: 6.75% p.a.

Repayment tenure: 5 years

EMI to be paid by you each month: Rs. 98,417

Total interest to be paid: Rs. 9,05,038

Total amount to be paid by you to the lender: Rs. 59,05,038

Our EMI Calculator also provides the following amortization schedule:

Year	Opening Balance	Amount Paid by *customer(EMI12)**	Interest paid during the year	Principal paid during the year	Closing Balance
1	Rs. 50,00,000	Rs. 98,417	Rs. 28,125	Rs. 70,292	Rs. 49,29,708
2	Rs. 49,29,708	Rs. 11,81,008	Rs. 3,06,014	Rs. 8,74,994	Rs. 40,54,714
3	Rs. 40,54,714	Rs. 11,81,008	Rs. 2,45,090	Rs. 9,35,918	Rs. 31,18,797
4	Rs. 31,18,797	Rs. 11,81,008	Rs. 1,79,924	Rs. 10,01,084	Rs. 21,17,713
5	Rs. 21,17,713	Rs. 11,81,008	Rs. 1,10,221	Rs. 10,70,787	Rs. 10,46,926
6	Rs. 10,46,926	Rs. 10,82,590	Rs. 35,664	Rs. 10,46,926	Rs. 0

Additional Reading: How to calculate credit score?

Bank of Baroda offers a variety of Business Loans to cater to every section of society. The bank provides different facilities to traders, small borrowers under the MUDRA scheme, MSME borrowers and corporate entities.

Following are different types of business loans offered by the Bank of Baroda along with their eligibility criteria:

Traders: Loan up to Rs. 10 Crores and tenure up to 120 months with flexibility to avail peak/non-peak season limits to cater to the varying demands of the business.

Eligibility:

Individuals and non-individuals engaged in trading of goods/commodities in physical form and dealers in gold & silver jewellery.
Resident Indians and Non-resident Indians (NRIs).
Minimum Gross Income: Average of Rs. 3 Lakhs for the last 3 years for residents and average of Rs. 5 Lakhs for the previous 3 years for NRIs.
Margin: 40% of the realisable value of immovable property
Security: Mortgage of property.

Mudra Loans: Credit available to micro and small enterprises engaged in some income generation. There is no minimum limit and maximum amount available up to Rs. 10 Lakhs.

Eligibility:

All non-farm enterprises under Micro and Small enterprises segment.
Must be engaged in income-generating activities.
Credit needs up to Rs. 10 Lakhs.
Allied agriculture activities now allowed under PMMY scheme.

Baroda Vidyasthali Loan: Loan up to Rs. 5 Crores for financing educational institutions for construction of school building, renovation, modernisation, expansion, equipment purchase, vehicle purchase, etc.

Eligibility:

All educational institutions including playschool.
Hindu Undivided Family (HUF) not eligible for finance.
Internal Credit rating should be BOB-6.

Baroda Arogyadham: Loan up to Rs. 30 Crores for MSME units to set up/purchase of new clinic/hospital, renovate/modernise/expand existing hospital or clinic, purchase modern medical diagnostic or office equipment, and meet working capital requirements.

Eligibility:

All MSME units with at least one promoter/director should have the requisite qualification in any branch of medical science.
All financial ratios and working capital requirements should be met.
Submission of Stock statements/Book debts once a year.
Individual CIBIL score should not be less than 700.
For non-individuals: CMR ranking should not be below CMR-6.
Loans up to Rs. 2 Crores are eligible for cover under CGTMSE, hence collateral-free.
Internal Credit rating not less than BOB 6.

Composite Loans: Loan up to Rs. 1 Crore for working capital requirement, and capital investment such as the purchase of fixed assets for business. Repayment up to 10 years (extendable).

Eligibility:

SME (Manufacturing sector) including artisans, village and cottage industries
SME (Service sector) engaged in industrial activities
Margin: Up to to 25%
Security: Charge on assets created out of the loan.
Collateral: depending on case to case basis.

Working Capital Finance: Loan to meet operating expenses, purchase inventory, finance receivables either by direct funding like Bills Discounting or by issuing a letter of credit.

Eligibility: All business units

Term Finance: Loan for all business units for capital expenditure, acquiring fixed assets, business unit set up or expansion, purchase equipment for professional use, etc.

Eligibility

Individuals conducting business with or without hired labour
Self-employed professionals are eligible
Security in the form of DP note, letter of hypothecation, and mortgage of business premises.

Micro, Small, and Medium Enterprises (MSME): Business loans to MSMEs for acquisition of land, construction of factory building, machinery purchase, working capital, etc.
Technology Upgradation Fund Scheme – TUFS: Loan available to the textile industry. Get interest reimursement of up to 25%.
Credit Linked Capital Subsidy Scheme – CLCSS: Loan for technology upgradation of tiny and SSI units. Loan up to Rs. 1 Crore.
Collateral free loans under Credit Guarantee Trust for Small and Micro Enterprises (CGTMSE): Collateral free loans up to Rs. 2 Crores to all eligible MSE units.

Eligibility:

Prime security is asset financed through a bank loan
Hybrid security product available where CGTMSE guarantee cover is available for the portion of credit facility not covered by collateral.
CGTMSE coverage as per Government norms

Apart from the business loan schemes mentioned above, Bank of Baroda offerrs the following credit facilities to business units:

Scheme for financing energy efficiency projects
Scheme for textile industry
Prime Minister Employment Generation Programme – PMEGP
Loans under interest subsidy eligibility certificate scheme – KVIC – ISEC
Fintech – Finance for e-commerce platforms
Baroda overdraft for e-Commerce business
Baroda tankerz loan 3-in-1
PSB Loan in 59 minutes
Baroda E-Business Pack
Commercial Vehicle Finance
Baroda Loan for Restaurants
Baroda Laghu Udhyami Credit Card
Baroda MSE General Credit Card
Baroda GST Receivables Card for MSME Enterprises
Baroda Property Pride
NHFDC Refinance
Baroda Contractor Scheme
SME Short-Term Loan
SME Medium-Term Loan
Scheme for Professionals
Baroda SME Loan Pack
Construction and Mining Equipment
MSME Textile Scheme
Baroda Contractor Mumbai
MSME Capex Loan and Capex Card
Baroda Artisans Credit Card
Facility Revolving credit facility
BOB Weaver Mudra Scheme
Baroda Loan to Business Correspondents
Vendor Bill Discounting
Bill/Invoice Discounting Under Value Chain Finance
Corporate Finance
FCNR(B) loans
Bridge loans
Advance against shares
Short-term corporate loan
Project finance

Additional Reading: Cibil score check free online by pan number

a) Identity Proof – Any one of the following:

Voter ID Card

Passport

Driving Licence

PAN Card

Signature identification from the present banker of proprietor, partner, or director.

b) Address Proof of Residence – Any one of the following:

Latest telephone bills

Latest Electricity bills

Property Tax receipt

Passport

Voter ID Card of proprietor, partner, or director

c) Proof of address of the business

d) Income Documents:

Three years IT Returns and Sales Tax Returns (if applicable)

Audited Balance Sheet (If audited B/S are not available, the bank accepts unaudited B/s for fund-based limits up to Rs. 25 Lakhs.

MOA and AOA in case of companies

Partnership deed in case of partnership firms

Assets and Liabilities of promoters and guarantors with their latest IT returns

Projected B/S for the next two years in case of WC limits and the entire repayment tenure in case of term loans.

e) Rent agreement, if business premises is on rent

f) MSME Registration

g) In case of takeover of loans, sanction letter along with terms and conditions is necessary.

h) Photocopies of all property documents, if the property is offered as collateral

i) Position of accounts from existing bankers and confirmation of asset classification (in case of takeover)

For limits above Rs. 25 Lakhs, the following additional documents are necessary:

a) Audited Balance Sheets are compulsory

b) Business profile of the unit

c) Last three years B/S of associate or group companies

d) Project Report

e) Review of account

f) Manufacturing Process, if applicable

Additional Reading: How to improve cibil score?

fastmudra offers accessible avenues to apply for Bank of Baroda Business Loans from its website. The process is simple.

Access the website of fastmudra and select the Business Loan option.
The system asks you to submit details about yourself such as name, age, loan amount, city of residence and business particulars.
Provide your contact details, including your mobile phone number and email address.
We send you an OTP that you enter at the appropriate location to gain access.
Our Business Loan experts will guide you through the document compilation process and help you to apply for the Bank of Baroda Business Loan.

You can also apply through the following ways:

Visit the nearest branch office of Bank of Baroda and submit your loan application along with the necessary documents.
Apply online on the official website of Bank of Baroda

Processing fees: Up to 2% of the approved limit.
Commitment charges – fund-based: 0.10% to 0.40% depending on the customer’s credit. Documentation charges: Up to 0.10% with a maximum of Rs. 25,000.
Inspection charge – other than retail loans: Up to Rs. 25,000 per location.
Prepayment charges: 2% of the balance amount of loan for the residual period of repayment except retail loans.

Additional Reading: Check Credit Bureau of India