Looking for a Business Loan from Bank of Baroda?

This page contains all the information you need to make a sensible and sound decision.

Business Loans from Bank of Baroda

Being one of the largest public sector banks in India, Bank of Baroda (BoB) offers a range of loans to different segments of its customer base. As of April 2020, BoB offers ten loan options to its corporate customers to help them run their business smoothly.

The business loans offered by Bank of Baroda are:

  1. Working Capital Loan
  2. Foreign Currency Non-Resident (FCNR-B) Loans
  3. Export Finance
  4. Infrastructure Finance
  5. Project Finance
  6. Term Finance
  7. Loan Against Rent Receivables
  8. Bridge Loan
  9. Line of Credit
  10. Short Term Corporate Loan

We give you a brief introduction to each of these BoB business loans below.

Bank of Baroda Business Loan for Working Capital

The Bank of Baroda Working Capital Loan helps businesses finance their everyday operations such as for investment in current assets, purchase inventory, salary payments, power charges, etc. This a perfect loan scheme for businesses that need help during periods of reduced business activity or while waiting for receipt of payment after completing projects.

Features of Bank of Baroda Working Capital Business Loan

Why this Loan?

  • This business loan can be taken for all current obligations due within a year related to running the business
  • Bank of Baroda offers this loan in India currency as well as foreign currencies depending on the borrower’s needs
  • This loan can be availed to purchase business assets as well

Bank of Baroda Foreign Currency Non-Resident (FCNR-B) Loans

The Bank of Baroda FCNR-B Loan helps businesses raise funds through foreign currency loans for their everyday operations such as for investment in current assets, purchase of inventory, salary payments, power charges, etc. The loan can be disbursed in four currencies viz. US dollars, Euros, Pound Sterling and Japanese Yen.

Features of Bank of Baroda Foreign Currency Non-Resident (FCNR-B)

Why this Loan?

  • This business loan can be availed for all working capital requirements due within a year related to running the business
  • The borrower does not need to go to the international market to raise funds as foreign currency funds are made available in India. This helps reduce the overall cost of raising funds
  • The minimum loan amount is 100,000 USD, Euros and Pound Sterling or 10,000,000 Japanese Yen
  • The maximum loan amount sanctioned under this loan is 90% of the Maximum Permissible Bank Finance (MPBF) limit

Bank of Baroda Business Loan for Export Finance

This loan helps businesses pay for pre-shipment, post-shipment, and other activities right from sourcing, manufacturing or converting semi-finished into finished goods and services to importing raw materials and capital goods for export business.

Features of Bank of Baroda Export Finance Business Loan

Why this Loan?

  • The Bank of Baroda Export Finance Loan is meant for you if your business needs funds for any activity directly related to your export business whether it is pre-shipment or post-shipment. Please get in touch with the bank to get a list of all activities eligible for this loan
  • The repayment period for each loan is set on a case-to-case basis depending on factors such as the nature of project, quantum of loan, repayment capacity of the borrower, etc.
  • Bank of Baroda extends this loan at pre-shipment as well as post-shipment stage in Indian currency and foreign currency

Bank of Baroda Infrastructure Finance Loan

This loan helps businesses pay upfront for building infrastructure such as roads, bridges, urban development, etc. These types of loans are characterised by a large outlay of funds and longer periods of repayment.

Features of Bank of Baroda Infrastructure Finance (Business Loan)

Why this Loan?

  • The Bank of Baroda Infrastructure Finance Loan is meant for you if your business needs funds to build infrastructure projects such as highways, bridges, water supply systems, Air or Sea port-development, urban development, etc.
  • This business loan is offered in Indian currency and foreign currencies
  • The repayment period for each loan is set on a case-to-case basis depending on factors such as the nature of project, quantum of loan, repayment capacity of the borrower, etc.

Bank of Baroda Project Finance

Bank of Baroda offers the Project Finance loan scheme to help businesses to meet the needs of an ongoing project. This loan is offered in Indian as well as foreign currencies.

Features of Bank of Baroda Project Finance (Business Loan)

Why this Loan?

  • The Bank of Baroda Project Finance Loan is meant for you if your business needs funds to run an ongoing project. We suggest getting in touch with the bank to know the type of projects eligible for this loan
  • This loan is extended in Indian and foreign currencies

Bank of Baroda Term Finance

Bank of Baroda offers term loan schemes to help businesses to meet working capital or capital expenditure needs. This loan can also be availed for expenditure related to business expansion.

Features of Bank of Baroda Term Finance (Business Loan)

Why this Loan?

  • The Bank of Baroda Term Finance Loan is meant for you if your business needs funds to meet its capital expenditure or working capital needs
  • The bank also offers non-fund based finance in the form of Deferred Payment Guarantee for the acquisition of fixed assets

Bank of Baroda Loan Against Rent Receivables

This loan is designed to help businesses meet the expenses of renovation, expansion or alteration to the premises rented or other business/personal needs related to the property. The maximum loan amount for this loan is Rs. 200 crore.

Featured of Bank of Baroda Loan Against Rent Receivables

Why this Loan?

  • The Bank of Baroda Loan Against Rent Receivables is the perfect corporate business loan to help landlords meet the expenses of alteration, addition or renovation to the premises but not for speculative purposes
  • The minimum loan amount is Rs. 25 lakh and the maximum loan amount is Rs. 200 crore
  • The loan can be repaid through monthly rent as EMI for the unexpired period of lease

Bank of Baroda Bridge Loan

This loan helps businesses meet current obligations by getting immediate cash flow until the business secures a permanent financing solution or removes an existing obligation.

Features of Bank of Baroda Bridge Loan

Why this Loan?

  • The Bank of Baroda Bridge Loan is meant for you if your business needs funds to meet a current obligation in the absence of a permanent financing solution or until the existing obligation is removed
  • This is a short-term loan offered for a period of up to 12 months

Bank of Baroda Line of Credit

This scheme of Line of Credit from Bank of Baroda enables the borrowers to switch over between different working capital facilities with ease as per their needs instead of getting restricted by maximum limit for specific facilities.

Features of Bank of Baroda Line of Credit

Why this Loan?

  • Businesses easily can switch over between different working capital facilities such as Cash Credit, Stock & Book Debts with ease instead of getting restricted for each facility
  • The bank sanctions a combined limit for different approved facilities so that the business can run operations smoothly

Bank of Baroda Short Term Corporate Loans

The Bank of Baroda Short Term Corporate Loan helps businesses to take care of business exigencies or meet basic operational needs including the purchase of equipment, funding for payroll, etc.

Features of Bank of BarodaShort Term Corporate Loans

Why this Loan?

  • This loan can be taken for short-term funding needs for a project
  • The repayment schedule is set based on a range of factors such as Cash Generation and Repayment capacity of the borrower, Debt Service Coverage Ratio, etc.

Important Note: Bank of Baroda may offer more corporate loan options that are not yet published on the website. We suggest that you get in touch with the nearest branch to check the loan schemes they offer. This will also help you get a custom quote since many loan schemes are need-based and certain charges such application charges, service charges, Strategic Premium, etc. may be decided on a case-to-case basis.

Interest Rate for Bank of Baroda Business Loans

  • The interest rate for Bank of Baroda Loans is defined as the sum of three factors, namely: Benchmark Prime Lending Rate (BPLR), Strategic Premium and Credit Risk Premium
  • The Strategic Premium depends on various factors including the type of business, tenure of loan, etc.
  • Credit Risk Premium, as the name suggests, depends on the Credit Risk Rating of the borrower

Documents Needed for Individuals

  • Loan Application Form duly filled and signed by the applicant and co-applicant, if any
  • Two Passport Size Photographs of applicant and co-applicant
  • Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card/PAN Card Issuing Letter is must
  • Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
  • Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Income/Banking Proof: Last 6 months Bank Account Statement of applicant and co-applicant, Loan Statement of Running Loans, Latest Closed Loan NOC, Net Worth of the applicant and co-applicant
  • Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report

Documents Needed for Proprietorship and Partnership Firms

  • Loan Application Form duly filled and signed
  • Partnership Deed and Partnership Registration Certificate
  • ID Proof of the Firm: Firm PAN Card or PAN Issuing Letter
  • Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Income Proof: CMA Data and Project Report, Debtors and Creditors Certificate, GST Return, Last 3 years ITR of applicant and co-applicant, Audited or CA Certified Computation of Income/Trading Account/Profit and Loss Account/Balance Sheet, Annual Audit Report and Tax Audit Report if audited, Form 16A if applicable, Net Worth of applicants, co-applicants and guarantors
  • Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account
  • Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
  • Other Relevant Documents: Partnership’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References

Documents Needed for Private Limited and Public Limited Companies

  • Application Form duly filled and signed
  • Company ID Proof: Company’s PAN Card
  • Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Business Proof: AOA and MOA, Company Incorporation Certificate, Business Commencement Certificate, Board Resolution, CA/CS verified Share Holding Pattern, ROC Annual Return, DIN Certificate, List of Directors on Company Letter Head, GST Number, Form 32 in case of Director Change
  • Income Proof: CMA Data and Project Report, Last 3 Years ITR Acknowledgement copy of Company and all Directors, Last 3 Years Annual Credit Report or Tax Audit Report with Article 3CB, Article 2D, Article 3CD, TDS Certificate/Form 16A, Net Worth Certificate
  • Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account
  • Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
  • Other Relevant Documents: Company’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References

Reference Facts

  • Bank of Baroda Website: www.bankofbaroda.com and www.bobibanking.com (net banking)
  • Headquarters: Baroda (Vadodara), Gujarat
  • Call Centre Toll-Free Number: 1800 223 344, 1800 102 4455