Are you planning to apply for a loan for your business? If yes, the Bank of Baroda might be a good choice for you. It is a renowned public sector bank that offers plenty of business loans to self-employed individuals, MSMEs, business owners, etc.
The best thing about Bank of Baroda’s business loan schemes is that they offer different types of business loans such as working capital, MSME loans, overdraft, term loans, bill discounting, and more. Plus, the interest rates for business loans are quite low compared to other banks.
Bank of Baroda Business Loan
In this article, we are going to briefly discuss different business loan schemes offered by BoB, eligibility criteria, and all other essential things that you should know before applying for a loan in the Bank of Baroda. So, without any further ado, let’s get started –
Benefits of Bank of Baroda Business Loan
- One of the best things about Bank of Baroda business loans is that the interest rates at BoB are quite competitive compared to other public sector and private banks. The average interest rates for business loans at BoB range between 7.25% to 13.50%.
- Another great thing about taking a business loan from the Bank of Baroda is that BoB offers different types of loan schemes for different types of businesses and business sectors. For example, they have different loan schemes for MSMEs, corporates, and international businesses.
- The loan application process in the Bank of Baroda is quite fast and relatively easy. You just need to ensure that you have all the essential documents ready.
- The loan approval and disbursal processes are also quite fast. Once you get your loan approved, you can get the amount disbursed on your current account on the same day.
- Bank of Baroda offers a quite flexible tenure for business loans. You can take a business loan for the minimum tenure of 12 months to the maximum tenure of 60 months.
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Bank of Baroda Business Loan Eligibility Criteria
- The minimum age of the applicant should be at least 18 years and should be no more than 65 years at the time of loan maturity.
- Your business should have stable growth and good repayment history. Plus, your business shouldn’t have any big ongoing loans.
- Your business should be established for at least two years in the current industry.
- You should have the immovable property with a market value of at least 40% of the loan amount. This will be required as tangible collateral security.
- If you are applying as a self-employed individual, you must have a good credit score of 750 or above.
- As an individual, you should have a clean track record of timely repayment of past loans.
Documents Required for Bank of Baroda Business Loan Application
- You will have to download the Bank of Baroda business loan application form and properly fill it with passport-sized photos.
- You have to provide a document for identity proof. (AADHAR Card/ Passport/ Voter ID card/ PAN Card/ Driving License)
- You have to provide one document for address proof. (AADHAR Card/ Passport/ PAN/ Agreement of Rent/ Electricity Bill, etc.)
- One document for Business Address Proof (Electricity bill/ Agreement of Rent, etc.)
- Business PAN Card
- A copy of the partnership deed, registration certificate by SEBI, RBI, etc.
- Copy of ITR of last two years
- Bank statement of your business account of the past six months
- Business establishment proof
- Other documents
Fee, Charges, and Other Things
Loan Processing Fee
Bank of Baroda doesn’t ask you to pay any processing fee for business loans.
The interest rates depend on the loan scheme you opt for; however, the interest rates for business loans in the Bank of Baroda range between 7.25% to 13.50% per annum.
Pre-payment – Partially/Full
If you prepay your loan amount within the first 12 months, you have to pay an interest rate of 2% of the principal outstanding. However, if you opt for the pre-payment after 12 months, you don’t have to pay any charges.
How to apply for Business Loan in Bank of Baroda
To apply for a business loan in Bank of Baroda, you have to follow these simple steps –
- First of all, open this link on your web browser.
- Now, select the business loan scheme you are interested in. If you are confused about which loan scheme would be right for you, you can click on the Know More option to find detailed information about the scheme.
- Once you come across the loan scheme that suits your business needs, click on the Apply Now option.
- Here, you will be asked to Submit a Lead or Track Lead. Click on the Submit Lead option.
- Please enter your mobile number and verify it with the OTP.
- After that, it will ask a few questions about you. Answer them correctly.
- Finally, submit your loan application.
That’s it. Within three working days, the representative from the Bank of Baroda will contact you regarding your loan application. Alternatively, you can also visit the nearby branch to have a better understanding of the loan schemes that are suitable for your business needs.
With that said, here I am wrapping up this article. If you have any questions, feel free to shoot them in the comment section below. Our team will try to respond to all your queries ASAP.