Bank of Baroda Business Loan

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Business Loan

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    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 rate of interest depends on the amount of loan and is fixed between 11.15%p.a to 12.15% p.a . The loan is available for the maximum period of 5 years.

    Bank of Baroda Business Loan Details

    ParticularsDetails
    Interest Rates11.15%p.a – 12.15%p.a
    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 Tenure12 months to 36 months
    Maximum Loan Tenure5 years (60 months)
    Processing Fee0.35% of the loan amount
    Pre-payment Charges- Up to 12 months : 2%
    - More than 12 months: Nil
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    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 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 AmountLoan TenureInterest Rate (p.a)EMITotal Interest OutgoTotal Amount (EMI+Interest)
     Rs.10,00,00,0001 year11.15% -12.15%Rs. 88,61,505 - Rs. 89,08,286Rs. 63,38,065 - Rs. 68,99,435Rs. 10,63,38,065 - Rs. 10,68,99,435
     Rs.10,00,00,0002 years11.15% -12.15%Rs. 46,84,032 - Rs. 47,30,731Rs. 1,24,16,757 - Rs. 1,35,37,540Rs. 11,24,16,757 - Rs. 11,35,37,540
     Rs.10,00,00,0003 years11.15% -12.15%Rs. 32,97,601 - Rs. 33,45,363Rs. 1,87,13,623 - Rs. 2,04,33,052Rs. 11,87,13,623 - Rs. 12,04,33,052
     Rs.10,00,00,0004 years11.15% -12.15%Rs. 26,08,901 - Rs. 26,58,000Rs. 2,52,27,243 - Rs. 2,75,83,995Rs. 12,52,27,243 - Rs. 12,75,83,995
     Rs.10,00,00,0005 years11.15% -12.15%Rs. 21,99,261 - Rs. 22,49,794Rs. 3,19,55,644 - Rs. 3,49,87,629Rs. 13,19,55,644 - Rs. 13,49,87,629
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    Amortization Table

    YearPrincipal PaymentInterest OutgoBalance Amount
    1Rs. 15,701,641 - Rs. 15,357,643Rs. 10,689,491 - Rs. 11,639,885Rs. 84,298,359 - Rs. 84,642,357
    2Rs. 17,605,610 - Rs. 17,391,242Rs. 8,785,522 - Rs. 9,606,286Rs. 66,692,749 - Rs. 67,251,115
    3Rs. 19,740,456 - Rs. 19,694,122Rs. 6,650,676 - Rs. 7,303,406Rs. 46,952,293 - Rs. 47,556,993
    4Rs. 22,134,169 - Rs. 22,301,939Rs. 4,256,963 - Rs. 4,695,589Rs. 24,818,124 - Rs. 25,255,054
    5Rs. 24,839,000 - Rs. 25,278,248Rs. 1,572,987 - Rs. 1,742,454Rs. 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)
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    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 comparaitively 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% )

     Where, 1 year MCLR = 9.40%  and

     Strategy Premium = 0.25%

    The rate of interest varies from 11.15% p.a – 12.15%p.a depending on the amount of loan and tenure.