Advance Against Securities to Help Consolidate Your Debts

A low interest loan to pay off your debt.

Bank of Baroda Advance Against Securities

This loan helps borrowers get the funds they need by pledging their securities such as National Savings Certificate (NSC), Life Insurance policy, Govt. bonds or Kisan Vikas Patra (KVP) to the bank. While this secured loan can be used to meet any financial needs such as a wedding, overseas travel, medical expenses and so on, it can also be used to consolidate high-interest debts. Borrowers can pay off their high-interest debts by availing a single loan. This loan cannot be availed for speculative purposes.

Features of Advance Against Securities from Bank of Baroda

Why this Loan?

  • The Bank of Baroda Advance Against Securities is meant for borrowers who want to avail financial assistance and are willing to pledge their securities such as NSCs, Life Insurance policies, Govt. bonds or KVPs to get the loan
  • Being a secured loan, borrowers can avail this scheme as a consolidation loan and pay off their high-interest credit card debts and other loans, thereby reducing their debt burden

Loan Amount

  • The minimum loan amount allowed by the bank under this loan is Rs. 3,000
  • The minimum overdraft amount allowed by BoB under this loan is Rs. 20,000


  • The applicable interest rate on this loan is defined as the sum of three factors namely, Baroda Repo Linked Lending Rate (BRLLR), Strategic Premium (SP) and Credit Risk Premium
  • As of October 2020, the interest rate applicable on this loan is BRLLR + SP + 0.25% or Deposit Rate + 1.00%, whichever is higher


  • This loan must be repaid within 5 years subject to maturity of the policy

Security Needed

  • The bank accepts pledging of securities such as Life Insurance policy, Kisan Vikas Putra (KVP), National Savings Certificate (NSC), Relief Bonds/Government Bonds, etc.

Margin Money (Borrowers Contribution to Total Cost)

  • Residual Period of Security up to 3 years: The bank charges 15% of the face value of the security
  • Residual Period of Security Over 3 years: The bank charges 20% of the face value of the security

Note: Margin money refers to the amount the borrower contributes to the overall amount required. The bank will cover the rest. So, if the total amount needed is Rs. 20 lakh and if the margin is 20%, the margin money comes to Rs. 4 lakh. The bank will provide the balance of Rs. 16 lakh.

Processing Charges

  • The bank charges Rs. 500 for processing this loan

Documents Needed for Individuals (Salaried and Self-employed)

  • 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 for Salaried Professionals: Last 3 months’ salary slip, Form 16 or income tax returns
  • Income/Banking Proof for Self-employed Professionals/Insurance Agents: Computation of income of last 2 years, Balance Sheet, Profit and Loss Account, Registration Certificate, GST Return, Income Tax Challan/ Form 26AS/TDS Certificate, IT Assessment, etc.

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

Reference Facts

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