Bank of Baroda Business Loan
Last Updated : Nov. 1, 2016, 7:22 a.m.
An Indian state owned banking and financial service company, Bank of Baroda is a renowned name in the loan industry. Its loan products include business loan, that is highly useful for individuals and partnership firms. The loan is issued against collaterals and security. The loan is available for the maximum period of 5 years.
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 |
Bank of Baroda Business Loan Eligibility Criteria
The list of candidates eligible to apply for business loan :
- Individuals
- Proprietorships
- Partnership Firms
- Co-operative societies
How To Apply
You can apply for the Bank of Baroda business loan by visiting the nearest branch office. The executive will get in touch and guide you regarding the process. He will inform you about the processing and documentation details.
Bank of Baroda Business Loan EMI Calculator
Instead of paying the lump sum amount, the borrower can repay the loan in form of monthly installments. These installments of equal amounts are to be paid each month over the tenure of the loan. The Business Loan EMI Calculator available on the bank’s website helps you calculate the amount of EMI. You need to enter the number of installments, loan amount and the rate of interest. The calculator will reveal the EMI value and the amount of total interest outgo.
For example, on the loan amount of Rs.10,00,00,000 the bank charges interest between 11.15%p.a – 12.15%p.a then the EMI you have to pay each month during the tenure of 5 years will range from Rs. 21,99,261 – Rs. 22,49,794.
Table Showing EMI, Total Interest Outgo and Total Amount
| Loan Amount | Loan Tenure | Interest Rate (p.a) | EMI | Total Interest Outgo | Total Amount (EMI+Interest) |
|---|---|---|---|---|---|
| Rs.10,00,00,000 | 1 year | 11.15% -12.15% | Rs. 88,61,505 - Rs. 89,08,286 | Rs. 63,38,065 - Rs. 68,99,435 | Rs. 10,63,38,065 - Rs. 10,68,99,435 |
| Rs.10,00,00,000 | 2 years | 11.15% -12.15% | Rs. 46,84,032 - Rs. 47,30,731 | Rs. 1,24,16,757 - Rs. 1,35,37,540 | Rs. 11,24,16,757 - Rs. 11,35,37,540 |
| Rs.10,00,00,000 | 3 years | 11.15% -12.15% | Rs. 32,97,601 - Rs. 33,45,363 | Rs. 1,87,13,623 - Rs. 2,04,33,052 | Rs. 11,87,13,623 - Rs. 12,04,33,052 |
| Rs.10,00,00,000 | 4 years | 11.15% -12.15% | Rs. 26,08,901 - Rs. 26,58,000 | Rs. 2,52,27,243 - Rs. 2,75,83,995 | Rs. 12,52,27,243 - Rs. 12,75,83,995 |
| Rs.10,00,00,000 | 5 years | 11.15% -12.15% | Rs. 21,99,261 - Rs. 22,49,794 | Rs. 3,19,55,644 - Rs. 3,49,87,629 | Rs. 13,19,55,644 - Rs. 13,49,87,629 |
Amortization Table
| Year | Principal Payment | Interest Outgo | Balance Amount |
|---|---|---|---|
| 1 | Rs. 15,701,641 - Rs. 15,357,643 | Rs. 10,689,491 - Rs. 11,639,885 | Rs. 84,298,359 - Rs. 84,642,357 |
| 2 | Rs. 17,605,610 - Rs. 17,391,242 | Rs. 8,785,522 - Rs. 9,606,286 | Rs. 66,692,749 - Rs. 67,251,115 |
| 3 | Rs. 19,740,456 - Rs. 19,694,122 | Rs. 6,650,676 - Rs. 7,303,406 | Rs. 46,952,293 - Rs. 47,556,993 |
| 4 | Rs. 22,134,169 - Rs. 22,301,939 | Rs. 4,256,963 - Rs. 4,695,589 | Rs. 24,818,124 - Rs. 25,255,054 |
| 5 | Rs. 24,839,000 - Rs. 25,278,248 | Rs. 1,572,987 - Rs. 1,742,454 | Rs. 0 |
Bank of Baroda Business Loan Features and Benefits
- Pricing is linked with Internal Risk Rating
- Lower interest rates ranging
- Loan pledged against security
- Easy procedure
Bank of Baroda Business Loan Terms & Conditions
- The Business shall be established in the line of business for a minimum period of 2 years
- Tangible collateral securities in the form of mortgage of land (not agricultural land) and building are to be provided as security
- Margin of 40% on realisable market value of immovable property is available
Bank of Baroda Business Loan Application Form
The form is available at all the bank branches. Fill in the application form and avail the loan from the bank. Following fields are to be duly filled :
- Amount of loan
- Name of Applicant
- Place of business
- Proprietor/ Partner residential address
- Contact details
- Date of business establishment
- Contact numbers
- Banking details
- Nature of business
- Details of proprietors and partners
- Business performance details
- Security and other collateral details
- Working capital requirement details
Documents Required
- PAN Card – For Company /Firm/ individual
- Identity Proof: Copy of Aadhaar Card/Passport/Voter’s ID card/Pan Card/Driving License
- Address Proof: Copy of Aadhaar Card/Passport/ Voter ID-Card/Driving License
- Bank Statement (latest 6 months)
- Latest ITR along with computation of income, Balance sheet and Profit & Loss a/c for the last 2 years. Financial should be CA Certified /Audited.
- Proof of continuation (ITR/Trade license /Establishment /Sales Tax certificate)
- Other Mandatory Documents (Sole Prop. Declaration Or Certified Copy of Partnership Deed, Certified true copy of Memorandum & Articles of Association (certified by Director) & Board resolution (Original)
Factors Affecting Business Loan Eligibility
- Loan Repayment track
- Credit Performance / Credit Bureau Update
- Debt servicing ability of the customer
- Business Vintage
- Financial Ratios
- Existing relationship
Bank of Baroda Business Loan Interest Rates
The business loan offered by Bank of Baroda are pledged against the asset. Therefore, the rate of interest on the business loan is comparatively lower than other banks. The rate of interest is calculated using the below mentioned formula:
Rate of Interest = 1 year MCLR + Strategy Premium + (1.50% 0r 2.50% )