Looking for an MSME loan for Your Business From Bank of Baroda?
You have landed at the right place. This page contains all the information you will need on Bank of Baroda’s Composite Loan.
Bank of Baroda Composite Loan for MSMEs
This loan helps businesses in the Micro and Small Enterprises (MSE) sector meet their capital expenditure and working capital requirements. Proprietorships, partnerships and limited companies in the manufacturing and services sector that fit SME definition are eligible for this loan.
Features of Bank of Baroda Composite Loan
Why this Loan?
- This Bank of Baroda Composite Loan is meant for small businesses in the MSE sector who need financial assistance to meet their working capital and capital expenditure needs
- Micro and Small Enterprises in the manufacturing sector and Micro Enterprises in industrial activities that are seeking financial assistance are eligible for this loan
Loan Amount
- The maximum loan amount sanctioned under this loan is Rs. 1 crore
Interest
- The interest rate for this loan is defined as the sum of one-year Marginal Cost of Funds Based Lending Rate (MCLR) of the bank, Strategic Spread and Credit Risk Spread. The Strategic Spread depends on various factors such as quantum of loan, repayment period, etc. while the Credit Risk Spread depends on the credit risk rating of borrower. As of now the exact interest rate applicable on this loan is not mentioned on the bank’s website. Please call the bank customer care number to get information
Repayment
- These loans need to be repaid in 3 to 10 years
- The moratorium period for this loan can be anywhere from 12 to 18 months
Security Needed
- The bank asks for hypothecation of assets created out of loan amount as primary security for this loan
- These bank may also ask for collateral security
Margin Money (Borrowers Contribution to Total Cost)
- Loans up to Rs. 25,000: No processing charges
- Loans Above Rs. 25,000: The bank charges anywhere from 15% to 15% of total cost as margin money
Processing Charges
- As of now, the processing charges levied by the bank on this loan are not mentioned on the bank’s website. Please check with the bank for more details
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