Looking for an MSME Loan from Bank of Baroda for professionals?

You have landed at the right place. This page contains all the information you will need on Bank of Baroda’s MSME Loans for Professionals.

Bank of Baroda Scheme for Professionals

This loan helps architects, engineers, lawyers, Chartered Accountants (CA) and Company Secretaries (CS) to purchase of office, equipment, construction of office, expansion of unit, etc. The maximum loan amount sanctioned under this loan is Rs. 5 crore.

Features of Bank of Baroda Scheme for Professionals

Why this Loan?

  • The Bank of Baroda Scheme for Professionals is meant for CA, CS, architects, lawyers, engineers, etc. for the purchase or construction of office unit, expansion of unit, purchase of equipment and so on
  • The bank offers this funded facility as a term loan, demand loan, cash credit, etc.

Loan Amount

  • The maximum loan amount sanctioned under this loan scheme is Rs. 5 crore

Interest

  • The applicable interest rate on this loan is defined as the sum of three factors namely, one-year Marginal Cost of Funds Based Lending Rate (MCLR), Strategic Premium (SP) and Credit Risk Premium
  • For Micro Enterprises: The applicable interest rate on this loan is MCLR + SP + 1.35%
  • For Small Enterprises: The applicable interest rate on this loan is MCLR + SP + 1.50%
  • For Medium Enterprises: The applicable interest rate on this loan is MCLR + SP + 1.75%
  • As of now, the MCLR of Bank of Baroda is 7.50%. Please get in touch with the bank to know the Strategic premium applicable on this loan

Repayment

  • Term Loan: These loans need to be repaid in up to 7 years including the moratorium period
  • Working Capital Loan: This loan is repayable within 12 months and can be renewed on an annual basis

Security Needed

  • The assets created out of the loan amount are considered as the prime security for this loan
  • In certain cases, the bank may also ask for a collateral by way of land and building equivalent to at least 100% of loan amount

Borrower Contribution to Total Cost (Margin Money)

  • Working Capital Loan: The bank asks for 25% margin for these loans
  • Term Loan: The bank charges anywhere from 20% to 25% margin for these loans

Note: Margin money refers to the amount the borrower contributes to the overall amount required. The bank will cover the rest.

Processing Charges

  • As of now, this information is not available on the bank’s website. Get in touch with a bank representative to know more

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