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Bank of Baroda is among the trusted public sector banks in the country, providing various banking and financial services. It offers a wide range of loans, including business loans. MSMEs, self-employed professionals, owners of business entities, corporates etc., can avail a BOB Business Loan. To suit the business requirements of various customer types, the bank provides several types of business loans, like MSME business loans, working capital loans, term business loans, overdraft loans, bill discounting loans and so on. Here’s a detailed look at the crucial aspects of a Bank of Baroda Business Loan:

Bank of Baroda Business Loan Features and Benefits

The BOB Business Loan comes with a range of advantages. Here’s a look:

 

  1. Reasonable rates of interest: A key highlight of this loan is the reasonable and competitive rates of interest. Typically, the Bank of Baroda Business Loan interest rate can range from 7.50% to 13.50% for self-employed professionals and business entities.

  2. Loan to suit various business types: From MSMEs to corporates and from local business enterprises to international business entities, there is a BOB Business Loan to suit the nature of different business types.

  3. Loan for a wide range of purposes: You can use this business loan for a variety of purposes, such as modernising your business establishment, purchasing the latest machinery and equipment, establishing new business units, meeting your working capital requirements, and more.

  4. Loan for different customer categories: Be it self-employed professionals or self-employed non-professionals, a Bank of Baroda Business Loan can be availed by various categories of individuals and business entities.

  5. Hassle-free loan application: The Bank of Baroda Business Loan comes with a simple and convenient online application process. You are not required to undergo a cumbersome documentation process, nor do you need to make repeated branch visits.

  6. Quick disbursal: You don’t need to wait for long to get this business loan. Once your loan application is approved, you will receive this business loan within a few days.

Bank of Baroda Business Loan Eligibility

Did you know that the Bank of Baroda Business Loan eligibility conditions are easy to meet? Yes, you can avail this loan by fulfilling the simple eligibility criteria as mentioned below:

 

  • Age: You must be at least 21 years old to avail this business loan. The maximum age, at the time of loan maturity, should not exceed 60 years.

  • CIBIL score: To receive business loans at competitive rates of interest, you must have a CIBIL score of 750 or above. Having a poor CIBIL score can either result in loan application rejection or approval of loans at high business loan interest rates.

  • Stability and profitability of business: You need to have a profitable business of two years vintage. Remember, the bank will also assess the growth in your sales for the last three years. A negative sales trajectory can hamper the chances of your business loan getting approved.

  • Credit history: Your business should not have a history of credit default with any financial institution.

Bank of Baroda Business Loan Interest Rates

To know the Bank of Baroda Business Loan interest rate across various loan types, you can refer to the table given below:

Type of business loan

Bank of Baroda Business Loan interest rate

Tenure of the loan

Maximum loan amount

Business loan for self-employed professionals and self-employed non-professionals

Between 7.25% to 13.50%

Between 1 year to 3 years**

Between Rs. 1 Crore to Rs. 10 Crores**

Business loan for educational institutions

8.35% onwards plus Strategic Premium (SP)

Up to 7 years

Rs. 15 Crores

Business loan against rent receivables

7.65% plus Strategic Premium plus an additional rate of 3.25%

Up to 10 years

Rs. 200 crores

Commercial vehicle finance for transporters

7.60% plus a spread rate from 0.55% to 1.20%

Up to 5 years

Rs. 30 Crores

*Interest rates and charges are subject to market conditions and the bank’s discretion.

** Depending upon rural/semi-urban/urban and metro branches.

Factors Affecting Bank of Baroda Business Loan Rates

Here’s a look at the significant factors that impact the Bank of Baroda Business Loan interest rate:

  • Amount of the business loan: The business loan interest rate is contingent upon your total loan amount.

  • CIBIL Score: If you don’t have an optimum CIBIL score, you will be offered a business loan at higher interest rates.

  • Revenue and profitability of business: If your business is stable and has demonstrated the capacity to generate profits, you can be offered business loans at reasonable rates of interest. Conversely, a non-profit making business venture or a business enterprise suffering losses can be provided with a business loan at high rates of interest.

  • Business vintage: If your business enterprise has an experience of two years or more, you can get a loan at reasonable rates of interest. In sharp contrast, not having the requisite business experience can result in the bank charging higher interest rates.

Bank of Baroda Business Loan EMI Calculator

You can calculate your EMI obligations beforehand by using the simple and convenient online EMI calculator. To use the Bank of Baroda Business Loan EMI calculator you need to provide three variables: the loan amount, applicable interest rate and tenure. You can then view your EMI instantly.

For example, if you have availed Rs. 50 Lakhs BOB Business Loan at the interest rate of 13.50% with a repayment tenure of 3 years, the online calculator will show your monthly credit obligations as Rs. 1,69,676.

How to Apply for a BOB Business Loan

You can apply for a Bank of Baroda Business Loan online in a few simple steps. You are required to:

  1. Visit Bank of Baroda’s official website for business loans.

  2. Now you can see various types of business loans, such as MSME loans, corporate loans, international banking loans, start-up banking loans, and more. You need to select your loan type.

  3. Next, you need to choose the sub-category of your business loan. For instance, if you have clicked on MSME loans, you can see multiple loan offers, including loans and advances, digital MSME working capital loans, digital mudra loans etc.

  4. Now click on ‘Apply Now.’

  5. You will be redirected to a page where you have to provide your personal details and complete the registration process by entering an OTP.

  6. A bank official or representative will shortly contact you to take the loan application forward. You will be asked to fill the online form and upload the requisite documents. Upon successful authentication of your form and documents, the loan amount will be disbursed within a short time.

Documents Required for BOB Loan Application

Here’s a look at the documentation required for availing a Bank of Baroda Business Loan:

1Photographs: You need to submit/upload your recent passport-size photographs.

2. Proof of address: You can submit documents, such as passport, registered rent agreement, utility bills etc.

3. Proof of business identity: You can submit various documents, including certificate of registration, articles of association, partnership deed, business PAN card etc.

4. Proof of income/revenue: To establish the revenue of your business, you need to submit documents, such as the last six months bank statement, last two years Income Tax Returns (ITRs) etc.

5. Additional documents: The bank can ask for additional documents along with the above-mentioned documents. Remember, the requirement for additional documentation is at the discretion of the bank and contingent upon factors, such as the category and amount of business loan and the type of your business.

Types of MSME Schemes from Bank of Baroda

To cater to the needs of Micro, Small and Medium Enterprises (MSMEs), the Bank of Baroda provides different types of MSME Schemes.

  • Vidyasthali loan (for educational institutions).

  • Arogyadham loan (for health care providers and hospitals)

  • Vendor bill discounting ( for real estate developers)

  • Mudra scheme for weavers

  • Composite loan

  • Loan for purchasing construction and mining equipment

  • Business loan for eateries and restaurants

  • Business Correspondent loan

  • MSME Capital Expenditures scheme

  • MSME textile scheme

  • Short-term loan scheme for Small and Medium Enterprises (SMEs)

  • Long-term loan scheme for SMEs

  • Term business loan

  • Working capital loan

  • Digital Mudra loan

  • Digital MSME working capital loan

  • Public Sector Bank loans in 59 minutes

FAQs on Bank of Baroda Business Loan

  • ✔️What is the rate of interest on a Bank of Baroda Business Loan?

    The Bank of Baroda Business Loan interest rate can range between 7.50% and 13.50%. For special categories of MSME loans, the interest rates are different. 

  • ✔️What is the maximum repayment tenure of business loans in the Bank of Baroda?

    The repayment tenure for business loans availed by self-employed professionals and self-employed non-professionals has a maximum tenure of 36 months. However, the repayment tenure can range up to 10 years for the special MSME loan schemes. 

  • ✔️What is the maximum business loan amount provided by the Bank of Baroda?

    As a self-employed professional or the owner of a business entity, you can avail a maximum loan amount of Rs. 10 Crores. But under the special MSME schemes, you can get higher business loan amounts. For example, educational institutes can avail business loans of up to Rs. 200 Crores under the Vidyasthali scheme.  

  • ✔️Is age an eligibility factor to get a loan from the Bank of Baroda?

    Yes, you must be at least 21 years old to avail a Bank of Baroda Business Loan. The maximum age, on the date of loan maturity, should not be above 60 years.

  • ✔️Why take a business loan from the Bank of Baroda?

    You can take a BOB Business Loan to fund your multiple business needs, such as meeting working capital requirements, establishing new business units, purchasing the latest machinery and so on.

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