Bank of Baroda Business Loan
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.
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:
||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|
|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||
||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)
- 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
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Bank Of Baroda's Calculators
Bank Of Baroda's Other Products
Bank Of Baroda's IFSC Codes
- Bank Of Baroda Andaman and Nicobar
- Bank Of Baroda Andhra Pradesh
- Bank Of Baroda Assam
- Bank Of Baroda Bihar
- Bank Of Baroda Chandigarh
- Bank Of Baroda Chhattisgarh
- Bank Of Baroda Dadra and Nagar Haveli
- Bank Of Baroda Daman and Diu
- Bank Of Baroda Delhi
- Bank Of Baroda Goa
- Bank Of Baroda Gujarat
- Bank Of Baroda Haryana
- Bank Of Baroda Himachal Pradesh
- Bank Of Baroda Jammu and Kashmir
- Bank Of Baroda Jharkhand
- Bank Of Baroda Karnataka
- Bank Of Baroda Kerala
- Bank Of Baroda Madhya Pradesh
- Bank Of Baroda Maharashtra
- Bank Of Baroda Manipur
- Bank Of Baroda Meghalaya
- Bank Of Baroda Mizoram
- Bank Of Baroda Nagaland
- Bank Of Baroda Odisha
- Bank Of Baroda Puducherry
- Bank Of Baroda Punjab
- Bank Of Baroda Rajasthan
- Bank Of Baroda Tamil Nadu
- Bank Of Baroda Telangana
- Bank Of Baroda Tripura
- Bank Of Baroda Uttarakhand
- Bank Of Baroda Uttar Pradesh
- Bank Of Baroda West Bengal
Business Loan By Other Banks
- Axis Bank Business Loan
- HDFC Bank Business Loan
- ICICI Bank Business Loan
- Bajaj Finserv Business Loan
- IndiaBulls Business Loan
- Canara Bank Business Loan
- CITI Bank Business Loan
- DHFL Business Loan
- YES Bank Business Loan
- Union Bank of India Business Loan
- Federal Bank Business Loan
- IndusInd Bank Business Loan
- State Bank of India Business Loan
- IDFC FIRST Bank Business Loan
- Punjab National Bank Business Loan
- Hero FinCorp Business Loan
- IDBI Bank Business Loan
- Digikredit-SME Corner Business Loan
- Kotak Bank Business Loan
- Deutsche Bank Business Loan
- Shriram Urban Co Operative Bank Limited Business Loan
- Tata Capital Housing Finance Limited Business Loan
- Standard Chartered Bank Business Loan
- Ujjivan Small Finance Bank Business Loan
- Capital First Ltd. Business Loan
- Muthoot Finance Ltd Business Loan
- NeoGrowth Business Loan
- RBL Bank Business Loan
- Clix Capital Business Loan
- Aditya Birla Finance Limited Business Loan
- L&T Finance Business Loan
- Loantap Credit Products Private Limited Business Loan
- Lending Kart-Nbfc Business Loan
- Poonawalla Fincorp Limited Business Loan
- Piramal Housing Finance Business Loan
- Fullerton India Business Loan
- Tata Capital Financial Services LTD Business Loan
- IIFL Finance Business Loan
- Edelweiss Financial Services Business Loan
- INDIFI Business Loan
- INTELLEGROW Business Loan
- Bank of India Business Loan
- DCB Bank Business Loan
- Capri Global Business Loan
- UGRO Capital Business Loan
- HDFC Sales Business Loan
- FT Cash Business Loan
- HSBC Business Loan
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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