Urban Money

Bank of Baroda Business Loan

Bank of Baroda
4.5

Small firms and entrepreneurs can use business loans to aid them with their cash needs. There are numerous financial institutions across the nation that offer specialised business loans with low interest rates to meet your demands. Where Bank of baroda  offers Business loans with flexible terms and rates of 14.1 % p.a. for amounts up to Rs. 50 lakhs.

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Business Loan Banks

Interest Rate

Processing Fee

Loan Amount/Tenure

Bank of Baroda Business Loan Interest Rate

Up to 14.1%

0.75% - 1%

₹5L - ₹50L

Tenure(1 - 5 Years)

Details

Features and Benefits of Bank of Baroda Business Loan

Given below are the features and benefits of the Bank of Baroda Business Loan: 

  • Reasonable Rates of Interest: Bank of Baroda provides a reasonable and competitive interest rate. The interest rate ranges from 7.50% to 13.50% for self-employed professionals and business entities. 
  • Loan to Suit various Business Types: For MSMEs to corporates and local business enterprises, the Bank of Baroda Business Loan is available for all as per their requirements.
  • Loan for a Wide Range of Purposes: The Bank of Baroda Business Loans can be used for several purposes, from modernising business establishments and purchasing the latest machinery and new business units to working capital and more. 
  • Loan for Different Customer Categories: Bank of Baroda Business Loans can be availed by both self-employed professionals and non-professionals, including individuals and business entities. 
  • Hassle-free Loan Application: The Bank of Baroda Business Loan comes with minimal documentation and a convenient online process.
  • Quick Disbursal of Loan: Bank of Baroda won't make you wait long to receive your business loan amount. Once your loan application is verified and approved, they instantly disburse the loan into your account.

Bank of Baroda Business Loan Eligibility Criteria

The eligibility criteria for applying for a Bank of Baroda Business Loan are as follows:

  • The minimum age at the time of applying for the loan application must be 18 years.
  • The maximum age is up to 65 years.
  • You must have business stability and a good repayment history.
  • The CIBIL score should at least be 750 or above.
  • The borrower must not have any history as a defaulter with any other financial organisation.

Bank of Baroda Business Loan Fees and Charges

The Bank of Baroda charges minimal processing fees for a business loan application. While prepayment is allowed to borrowers, fees are charged for the ones prepaid on or before 12 months. Check out the details of the processing fees and charges for the Bank of Baroda Business Loan below:

  • The processing fee for a business loan application is 2% of the approved loan amount.
  • BOB charges 2% of the loan amount for prepayment on or before 12 months.
  • There are no prepayment charges post the 12 months limit.

Bank of Baroda Business Loan Interest Rates

Look into the table below to know the Bank of Baroda Business Loan interest rate across various loan types:

Business Loan Types Interest Rate of Bank of Baroda Business Loan Loan Tenure Maximum Loan Amount
Business loans for:
  • Self-employed professionals
  • Self-employed non-professionals
Between 7.25% and 13.50% From 1 year to 3 years Between Rs. 1 Crore and Rs. 10 Crores
Business loan for educational institutions 8.35% onwards and Strategic Premium (SP) Up to 7 years Rs. 15 crores
Business loan against rent receivables 7.65% and Strategic Premium and an additional rate of 3.25% Up to 10 years Rs. 200 crores
Commercial vehicle finance for transporters 7.60% and a spread rate between 0.55% to 1.20% Up to 5 years Rs. 30 Crores

Note: The interest rate and charges are subjected to market conditions. It depends on the area: rural/urban/metropolitan.

The minimum and maximum loan amounts that applicants can avail also depends on the location they are from as illustrated in the table below. 

Minimum Amount Rs.2 lacs for rural and Semi Urban Branches Rs.5 lacs for Urban and Metro Branches
Maximum Amount
  • Rs.1 Crore for Rural Branches
  • Rs. 3 Crore for Semi Urban Branches
  • Rs.5 Crore for Urban Branches
  • Rs.10 Crore for Metro Branches
Tenure of Loan Repayment 1-3 years 
Maximum Loan Tenure 60 months or 5 years

Factors Affecting Bank of Baroda Business Loan Interest Rates

Get to know the factors that affect the Bank of Baroda Business Loan interest rates:

  • Business Loan Amount: The interest rate on a business loan is applicable to the entire loan amount. Bank of Baroda offers affordable interest rates to eligible applicants starting from 7.25%. 
  • CIBIL Score: A good CIBIL score is required to get the best deal on a business loan at good interest rates. Lenders will deem you as a more trustworthy borrower if your CIBIL is 750 and above. On the flip side, a poor interest rate would either lead to high-interest rates or application rejection.  
  • Revenue and Business Profitability: If you are running a stable business, then the enhanced capacity to generate profit can help you in getting a business loan at an affordable interest rate. However, if your business is not making enough profit, you will most probably get a loan at a higher interest rate.
  • Business Experience: The business company must have two years of experience to get a loan at a reasonable rate. However, not having much experience can lead to a higher interest rate.

Types of MSME Schemes from Bank of Baroda

Bank of Baroda offers several types of business loans to applicants across industries, catering to various purposes. The types of MSME Schemes from the Bank of Baroda can be, therefore, categorised as per applicant type and the purpose for the loan. 

As Per Applicant Type

BOB Business Loan Types Applicants 
Vidyasthali Loan Educational institutions
Arogyadham Loan Hospitals and health care providers
Vendor Bill Discounting Real estate developers
Mudra Scheme Weavers and other craftsman
Business Loan for Hotel & Restaurants Eateries and restaurants
Short-Term and Long Term Loan Scheme SMEs
Digital Mudra Loan Manufacturing, trading and services sectors

As Per Loan Purposes

BOB Business Loan Types Loan Purposes
Business Loan in Mining Industry for purchasing construction and mining equipment
MSME Capital Expenditures Scheme To meet the capital requirement
MSME Textile Scheme Financing new projects and to fulfil requirement of the working capital
Term Business Loan
  • Purchasing devices like computers and their peripherals
  • Renovating office
  • Buying vehicles to perform BC activities
  • Working Capital Loan
  • Digital MSME
For meeting the working capital requirement, cash management and managing daily transactions
Digital Mudra Loan Manufacturing, trading and services sectors
Public Sector Bank Loans Loan for several purposes related to public sector businesses

Documents Required for Bank of Baroda Business Loan

Along with the business loan application form, an applicant has to submit the following documents:

  • Two recent passport size photographs.
  • Copy of Aadhaar card, PAN card, Voter ID card, and Passport as identity proof.
  • Copy of Driving Licence, Aadhaar card, PAN card, Voter ID card, and Passport as address proof.
  • Address proof of your business address.
  • Business PAN card.
  • A copy of the partnership deed, a registration certificate by RBI, SEBI, etc.
  • A copy of the last two years' income tax return.
  • Bank statement for last six months.
  • Business establishment proof.
  • Write up mentioning your loan type and credit profile.
  • Additional documents as asked by BOB.

How Does the EMI Calculation Work for Bank of Baroda Business Loans?

You can use the online calculator to calculate your business loan EMI. You just have to enter the loan amount, the loan tenure and the rate of interest. This EMI calculator is very easy to use. It will give you instant results, saving you time and effort. 

Manually, you can calculate your monthly business loan EMI as follows: 

EMI = P × r × (1 + r)n/((1 + r)n - 1) 

Here,

  • P is the principal loan amount
  • n is the tenure for repayment of loan
  • r is the rate of interest on your loan amount

How Does Bank of Baroda Compare with Other Lenders?

Here is a tabular representation showing the comparison between Bank of Baroda and other lenders on the basis of interest rates offered for business loans.

Banks And Other NBFCs Interest Rate (p.a.)
Bank of Baroda 7.50% to 13.50%
IIFL Finance 11.75% – 25.75%
HDFC Bank 11.90% – 21.35% .
FlexiLoans 1% per month onwards
ZipLoan 1% – 1.5% per month (Flat ROI)
Axis Bank 14.25% – 18.50%
IDFC First Bank 14.50% onwards
Kotak Mahindra Bank 16% – 19.99%
Fullerton Finance 17% – 21%
Bajaj Finserv 17% p.a. onwards
RBL Bank 17.50% – 25%
ICICI Bank 18% onwards
Indifi Finance 1.5% per month onwards
Lendingkart Finance 1.5% – 2% per month
Tata Capital Finance 19% p.a. onwards
NeoGrowth Finance 19% – 24%
Hero FinCorp Up to 26%

Bank of Baroda Business Loan Customer Care Number

To get any information regarding Bank of Baroda Business Loan requirements, queries, or other issues, feel free to contact the following toll-free number.

  • Bank of Baroda Business Loan Toll-Free Number: 1800 180 MSME or 1800 180 6763
  • Bank of Baroda Toll-Free Number: 1800 258 44 55 / 1800 102 44 55
  • Give a Missed Call: 8467001111
  • Send an SMS as: SMEreg to 8422009988

FAQs

From refinancing to reducing your interest, we have the answers right here.

How can I speed up my BOB Business Loan approval?

If you have a credit score of 750 or more, good repayment history and a profitable business, you can get your business loan quickly.

How much EMI do I have to pay for a Bank of Baroda Business Loan?

You can easily calculate the EMI using Urban Money’s advanced EMI calculator and easily plan how to pay your EMI business loan.

What is the minimum turnover requirement for a Bank of Baroda Business Loan?

A minimum of two years’ profit is required to avail of a Bank of Baroda Business Loan.

Does the Bank of Baroda check the CIBIL Score for business loans?

Yes. Bank of Baroda needs 750 or more points as a credit score from the applicant to approve its loan.

Does the Bank of Baroda provide business loans at the best rate?

Yes, the Bank of Baroda provides business loans at one of the best interest rates affordable for all types of businesses.

What is the interest rate of a business loan in the Bank of Baroda?

The interest rate of a business loan in the Bank of Baroda varies between 7.50% to 13.50%.

What are the documents required in the Bank of Baroda for a business loan?

The documents required in the Bank of Baroda for a business loan are a copy of the Aadhaar card, a PAN card, a filled form, a business PAN card, and many others.

How to check business loan status in Bank of Baroda?

You can track the status of your Bank of Baroda Business Loan via their official website, app or by calling any of the toll-free customer care numbers mentioned above.

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