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Bank of Baroda (BoB) is an Indian public sector bank, the second largest in India after the State Bank of India. It offers a wide range of financial products for commercial and personal borrowings and savings. Bank of Baroda business loan is one of the most trusted names for borrowing funds for large and small businesses considering its diverse range. We’ve already looked at SBI business loans, Canara Bank business loans (public sector banks). Here we’ll look at Bank of Baroda business loan interest rates, application process, documents required, EMI calculations and more.
Bank of Baroda business loan – Types and Features
Bank of Baroda business loans come in a wide variety that caters to different needs that businesses have. These loans can be borrowed for business expansion, meeting daily cash challenges, paying salaries, renting or leasing office space, or meeting emergency needs. In brief, these loans are designed keeping the borrower in mind. As such, when borrowing a BoB business loan, ensure you are clear on your requirements and borrow the right type of business loan for yourself.
In the category of loans and advances to MSMEs, BoB offers different types of loans to meet diverse business needs:
Baroda SME Loan Pack
|Baroda SME Loan Pack
(Also check YES MSME online portal)
|Purpose: To provide funds for working-capital as also capital expenditure
Eligibility: Must be an MSME and work with BoB exclusively
Tenure: Up to 7 years
Composite limit: Up to 4.5x of the borrower’s tangible net worth as per audited balance sheets, OR ₹10 crores, whichever is lower
Delivery/Disbursement: As per borrower’s requirements, i.e., short or long term loans or as non-fund based
Margin: 25% on all the facilities
*For more details on SME Loan Pack, visit Bank of Baroda website: bankofbaroda.in/business-banking/msme-banking/loans-and-advances/baroda-sme-loan-pack-business-loans
(Also check YES Bank MSME loans)
|Purpose/benefits: To enable MSMEs to acquire funds to:
Eligibility: For availing the BoB MSME Loan, a business must be categorised as per the new MSME classification
*For more information on Bank of Baroda MSME Loan, check the website: bankofbaroda.in/business-banking/msme-banking/loans-and-advances/msme-loan
SME Medium Term Loan
|SME Medium Term Loan
|Features/Purpose: To provide funds to bridge MSMEs working capital gaps and help to improve current ratio. Can also be used for loan repayment for other bank loans related to business.
Loan Amount: ₹25 lakhs – ₹5 crores
Tenure: Up to 36 months
Fees and charges: 25% concession on applicable charges
*For more information on Bank of Baroda SME Medium Term Loan, visit website: bankofbaroda.in/business-banking/msme-banking/loans-and-advances/sme-medium-term-loan
SME Short Term Loan
|SME Short Term Loan
|Features/Purpose: To provide funds to meet temporary liquidity challenges. Short term loan only for business activities and not to be used for any other purpose, e.g., loan repayment.
Loan Amount: ₹10 lakhs – ₹2.5 crores
Tenure: Up to 12 months (including moratorium period)
Fees and charges: 25% concession on applicable charges
*For more information on Bank of Baroda SME Short Term Loan, visit website: bankofbaroda.in/business-banking/msme-banking/loans-and-advances/sme-short-term-loan
Digital MSME Loan
|Digital MSME Loan
(Also check MSME digital lending solutions)
|Availability: Available on BoB website
Purpose: Working capital fund-based facilities
Loan Amount: ₹10 lakhs – ₹5 crores
Tenure: 12 months
Security: First charge on all assets created out of the funds borrowed from BoB. Alternatively, can be discussed and mutually agreed upon.
*For more details on Bank of Baroda Digital MSME Loan, visit website: bankofbaroda.in/business-banking/msme-banking/loans-and-advances/digital-msme-loan
Bank of Baroda business loan interest rate details
The bank business loan interest rate is one of the main decision making factors for any borrower. On the same loan amount (e.g., ₹10 lakhs), different interest rates offered by different banks and NBFCs can impact the overall EMI and loan repayment amount.
As can be understood, Bank of Baroda business loan interest rates will also vary depending on the type of loan/product, the credit worthiness of the borrower, the collaterals offered/not-offered, financial statements etc.
Here’s a quick look at business loan interest rate Bank of Baroda:
|Loan type||BoB Interest rates||Other fees & charges|
|General||7.5% – 1.5% p.a.||Up to 3% processing fees + GST documentation charges + stamp duty and any other statutory charges|
|SME Medium Term Loan||Competitive pricing linked to Repo rate/MCLR||Same|
|SME Short Term Loan||Competitive pricing linked to Repo rate/MCLR||Same|
|MSME Loan||Competitive pricing linked to Repo rate/MCLR||Same|
|SME Loan Pack Business Loan||Competitive pricing linked to Repo rate/MCLR||Margin: 25% on all facilities
And statutory fees and charges
Bank of Baroda business loan EMI calculator
Interest calculation for BoB business loans is done based on the interest rates offered, the loan amount and the tenure.
It’s recommended that you use an online EMI calculator to calculate the EMI payable instead of working it out manually using the loan EMI formula.
Whether you use Bank of Baroda business loan calculator or the one available on Tata nexarc, here’s how it work:
- Fill in the loan amount, tenure and annual interest rate
- The algorithm will take their details and calculate EMI based on monthly rate of interest
- It will tell you: The EMI amount (includes interest and principal)
Example: Amount: ₹5 lakhs, Tenure: 3 years (36 months)
|Interest rates||EMI||Total interest||Total payable (I+P)|
Documents required for BoB business loan application
Bank of Baroda business loan documents required can differ based on the loan type you are availing. Though there are standard documents for MSME loans and business loans that all banks accept, it’s recommended to check with the lending bank for any specific documents required.
Here’s a list of documents required for Bank of Baroda business loan application (not exclusive):
- 2 passport size photo (offline) or digital photo (online) and the duly filled in BoB loan application form
- PAN card (for company/firm/individual) and GST number
- MSME registration number and certificate (where applicable)
- Identity proof and Address proof – Aadhaar card, Voter ID, DL, Passport
- 6 months bank statements, audited P/L statement and balance sheet
- Latest ITR
- Business proof and proof of continuation
- Any other requested documents (e.g., Partnership deed)
How to apply for Bank of Baroda business loans online and offline
For Bank of Baroda business loan online application, you can:
- Visit the bank website on: bankofbaroda.in
- Select the loan type and click on the ‘Apply now’ button to apply for the loan
Based on the loan type, the next steps will change. In some cases, you can submit your phone number and the bank representatives will get back to you. In other cases, you can complete the online video based KYC to start the application process.
Alternatively, you can visit the bank’s numerous branches and apply for a business loan offline. You will have to fill in the Bank of Baroda business loan application form and submit documents. Once your documents are verified, you will get informed on whether or not your loan application is cleared. Further communication will be made on loan amount sanctioned and disbursal.
You can also visit the ‘Customer Support’ section, select ‘Business’ and download Bank of Baroda business loan application form pdf.
Bank of Baroda business loan contact number
Connect with the bank directly though their official page for customer service.
Personal banking: 1800 5700 (toll free)
IVR Service (for reporting suspicious activities): 1800 5700
Complaints/Feedback: Online, through link on ‘Contact Us’
bob World: Mobile banking app on Google Play and Apple App Store