Updated on: Apr 1st, 2021
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7 min read
Bank of Baroda, a reputed public sector bank, offers a wide variety of loans designed for small and medium businesses. It provides financial support to those looking for financial independence and a way to earn their living. Every possible occupation is considered and grouped under a separate loan scheme after considering the role’s needs.
Here is everything you need to know about the business loans offered by the Bank of Baroda.
Loan Types Offered | Baroda Vidyasthali Loan Baroda Arogyadham Loan Composite Loans Working Capital Finance Term Finance MSME Loan Baroda Overdraft for E-Commerce Business Baroda Tankerz Loan 3-in-1 (CA,BG,TL) Baroda E-Business Pack Baroda Loan for Restaurants Baroda Contractor Scheme and more |
Loan Amount | Up to Rs.250 lakh |
Loan Tenure | 12 months up to 10 years |
Interest Rate | Based on repo rate/MCLR |
Baroda Vidyasthali Loan | This scheme finances educational institutions, including playschool for construction, expansion, modernisation, and renovation. |
Baroda Arogyadham Loan | Avail loan under this scheme to set up or purchase new clinic/hospital, expansion, renovation, purchase of new medical equipment, and for working capital. |
Composite Loans | This scheme is for fixed capital investment or working capital requirement and offers up to Rs.100 lakh. No collateral or third-party guarantee required. |
Working Capital Finance | Corporations can avail working capital financing to meet their operating expenses, purchasing inventory, receivables financing, and other purposes. |
Baroda Loan for Restaurants | Financing offered for acquiring, renovating, modernising, decorating interiors, purchasing kitchen equipment, and others are offered under this scheme. |
Baroda Contractor Scheme | Working capital assistance is offered for existing and potential contractors and sub-contractors. |
SME Short Term Loan | This scheme helps businesses meet their temporary cash shortfall required to continue with their business activities. The repayment tenure is up to 12 months, including the moratorium period. |
SME Medium Term Loan | This scheme fills in the working capital gap to meet business requirements with a repayment tenure of up to 36 months with a quarterly or half-yearly instalment structure. |
The rate of interest for Bank of Baroda business loans are linked to repo rate or Marginal Cost of Funds based Lending Rate (MCLR).
MCLR Benchmark | MCLR in (%) w.e.f. 12 March 2021 |
Overnight MCLR | 6.55 |
1 Month MCLR | 7.00 |
3 Month MCLR | 7.15 |
6 Month MCLR | 7.25 |
1 Year MCLR | 7.40 |
Rating | Large and Mid Corporate Advances | Non regulatory SME /SME Expanded Advances |
CR-1 | MCLR + 1.25% | MCLR + STRATEGIC PREMIUM + 1.00% |
CR-2 | MCLR + 1.50% | MCLR + STRATEGIC PREMIUM + 1.25% |
CR-3 | MCLR + 2.70% | MCLR + STRATEGIC PREMIUM + 2.45% |
CR-4 | MCLR + 3.25% | MCLR + STRATEGIC PREMIUM + 3.00% |
CR-5 | MCLR + 4.10% | MCLR + STRATEGIC PREMIUM + 3.85% |
CR-6 & Below | MCLR + 6.50% | MCLR + STRATEGIC PREMIUM + 6.25% |
Eligibility varies with the loan scheme you choose. Here are the eligibility criteria for a few business loan schemes offered by the Bank of Baroda:
Baroda Vidyasthali Loan
Baroda Arogyadham Loan
Baroda Loan for Restaurants
Baroda Contractor Scheme
Scheme For Professionals
Type of Charge | Amount |
Processing charges for Fund Based & Non-Fund Based Working Capital Loan | Up to Rs.25,000: Nil Above Rs.25,000 (Fresh/Review): Rs.350 per lakh or part thereof Cap for Priority Sector: Rs.35 lakh Cap for Exporters Rs.17.50 lakh Others: No cap |
Processing charges for DL/TL/DPG/Corp Loan | 1% of the loan sanctioned Cap for Exporters: Rs.50 lakh Cap for Priority Sector: Rs.100 lakh Other Advances: No cap |
Negotiation charges | Rs.1,000 |
Prepayment charges on Term Loan/Demand Loan/Working Capital Demand Loan | 2% p.a. on the outstanding loan balance for the residual period of prepayment; not applicable for retail loans, including Loan against Future Rent Receivables/Staff Loans |
Yes. The bank offers business loans to the real estate sector to acquire or build housing complexes, shopping centres, etc.
Though the processing time varies on a case-to-case basis, it may take a maximum of 30 days from the date of applying, along with all the required documents.
Bank of Baroda accepts new and existing customers for short-term and medium-term business loans.
Bank of Baroda offers a variety of business loans tailored for small and medium businesses, with schemes like Baroda Vidyasthali Loan, Composite Loans, and Working Capital Finance. Loans range up to Rs. 250 lakh with a tenure of 12 months to 10 years. Interest rates are linked to the repo rate or MCLR. Different eligibility criteria exist per loan type, such as for restaurants, contractors, and professionals.