Loan Against Securities from Bank of Baroda to Pay Off Debt

The right loan to pare down your debt.

Bank of Baroda Loan Against Securities

This loan helps borrowers get the funds they need by pledging their securities such as shares, debentures, bonds, debt-oriented mutual funds, etc. with the bank. While this loan can be used to meet any contingencies and personal needs such as a wedding, overseas travel, and so on, it can also be used to consolidate your high-interest debts. This loan cannot be availed for speculative purposes.

Features of Baroda Loan Against Securities

Why this Loan?

  • The Bank of Baroda Loan Against Securities is meant for borrowers who want to avail financial assistance by pledging shares, debentures, bonds, etc. to meet their financial needs
  • Being a secured loan, borrowers can avail this scheme as a consolidation loan and pay off their high-interest credit card debts and loans, thereby consolidating their debts

Loan Amount

  • The maximum loan amount sanctioned by the bank under this loan is Rs. 20 lakh against shares, debentures and bonds and Rs. 1 crore against debt-oriented mutual funds

Interest

  • 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 may range from BRLLR + SP + 0.25% to BRLLR + SP + 1.00%

Repayment

  • This loan must be repaid within 12 months

Security Needed

  • The bank accepts pledging of shares, debentures, bonds, debt-oriented mutual funds, etc.

Margin Money (Borrowers Contribution to Total Cost)

  • The bank decides the margin based on the loan amount at the time of application

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, then a margin of 20% means the borrower will have to pay 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

  • 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

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