Bank Of Baroda Business Loan
The Bank of Baroda (BOB) Business Loan is ideal for those who run their own businesses, either with or without the assistance of hired personnel. Allows them to purchase equipment (including professional-grade PCs), as well as acquire new or repair existing business premises, tools, and working capital.
Key Takeaways
- This loan is appropriate for any business or profession that operates independently, with or without the use of hired labor, such as medical professionals, lawyers, engineers, contractors, consultants, electricians, hairdressers, handicraft artists, and so on.
- To obtain a business loan, a DP note with a letter of hypothecation of equipment and a mortgage of business premises must be given to the bank.
- The maximum loan limit for businessmen and professionals is Rs. 5 lakhs, with working capital not exceeding Rs. 1 lakh.
- Professionally qualified medical practitioners establishing a practice in semi-urban and/or rural areas are eligible for a working capital limit of Rs.10 lakhs, with a sub-limit of Rs.2 lakh.
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 |
What are the primary benefits of a BOB Business Loan?
- Benefits of purchasing the required equipment, such as a personal computer (PC) for professional use.
- Funds might be utilized to repair and renovate existing equipment.
- Simple application processes.
- Acquisition and repair of commercial premises or tools.
- To increase working capital.
- All accounts graded A+ will be eligible for loans at a lower interest rate.
- Loans are available at all Bank of Baroda locations.
- All concerns and issues can be directed to the regional zone offices or to the Central office.
- You can prepay a portion of your loan at any time by paying a 1% prepayment charge.
- You can foreclose your entire business loan anytime after paying a single EMI at foreclosure charges. There are no prepayment charges.
- Bank of Baroda has approximately 5,373 branches in India where you may get services.
What are the eligibility requirements for a Bank of Baroda business loan?
The two most basic and significant components, your loan repayment ability and payback history, are evaluated as part of the Bank of Baroda business loan eligibility requirements.
The following candidates are eligible to apply for a BOB business loan:
- Possible business structures include individuals, proprietorships, partnership firms, and cooperative groups.
- Age: Age has a big impact on your repayment capacity. According to the eligibility conditions for your company loan scheme, the borrower’s age cannot exceed 50 years.
- Credit score/CIBIL score: The credit score must be greater than 750. However, your repayment history, loans, and other factors will be considered.
- Business sturdiness: Only if your company is stable and has the ability to develop will you be able to repay the funds. The bank considers the increase of your company’s sales while determining its strength.
What documents are required for the Bank of Baroda Business Loan?
The following documents are needed for a Bank of Baroda business loan:
- Duly filled application form
- Two passport-size pictures
- Business Plan/Project Report
- Identity proof: Aadhaar card, PAN card, voter’s ID, passport.
- Address proofs include Aadhaar cards, PAN cards, passports, bank statements, rental agreements, and so on.
- Business proof includes a PAN card, sales tax, service tax, registration documentation, a copy of the partnership deed, and a registration certificate from the RBI or SEBI.
- Copy of the last two years’ income tax returns.
- Project reports.
- Last six months’ bank statement
- Business address, vintage, and establishment proofs
A business plan, often known as a project report, is an important document when requesting for a bank loan. The bank utilizes this document to assess a project’s overall feasibility, risks, financial viability, and potential. A well-written and convincing project report improves the likelihood of loan acceptance.
Conclusion:
Bank of Baroda business loans enable companies and entrepreneurs to fuel their goals and realize sustainable growth by providing a dependable and easily available source of funding. Through customer-focused products and services, favorable terms, and effective administration, Bank of Baroda reiterates its dedication to fostering the nation’s entrepreneurial environment and advancing economic development.