Loan and Advances

Loan and Advances

In addition to Working Capital Finance and Term Finance, Bank of Baroda has laid out a comprehensive suit of products specifically catering to SSI (small-scale industries) and Small Business Borrowers.

Loan and advances offered by Bank of Baroda are –

Fixed DepositsThis product is made for the customer who prefer to keep fixed sum of money for a definite period of time at a fixed rate of interest

  • Target Group:
    Business firms Companies, Associates engaged in trading or business activities for meeting working capital requirement
  • Repayment Period:
    12 months subject to annual review
  • Security:
    Hypothecation of stocks and debtors mortgage Bond on immovable property subject to assets coverage ratio 1.40. Personal guarantee of promoters.
  • Margin:
    25%
  • Rate of Interest:
    Based on Credit rating Linked to prime rate
  • Term Loan:
  • Target Group:
    Business firms Companies, Associates for meeting capital expenditure like land and building, plant and machinery, setting up of new unit or expansion
  • Repayment Period:
    From 3 years to 7 years in monthly installments
  • Security:
    Charge on assets created out of loan and mortgage Bond on immovable property subject to assets coverage ratio 1.40. Personal guarantee of promoters.
  • Margin:
    25% to 40% of the project cost
  • Rate of Interest:
    Based on Credit rating Linked to prime rate
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Term Loan

  • Target Group:
    Business firms Companies, Associates for meeting capital expenditure like land and building, plant and machinery, setting up of new unit or expansion
  • Repayment Period:
    From 3 years to 7 years in monthly installments
  • Security:
    Charge on assets created out of loan and mortgage Bond on immovable property subject to assets coverage ratio 1.40. Personal guarantee of promoters.
  • Margin:
    25% to 40% of the project cost
  • Rate of Interest:
    Based on Credit rating Linked to prime rate
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Term Loan

  • Objectives:
    Business firms Companies, Associates for meeting capital expenditure like land and building, plant and machinery, setting up of new unit or expansion
  • Type of facility:
    A credit line for a availment as Overdraft/Loan or L/C or Guarantee excluding standby L/C or Guarantee for availment of credit from other financial institution.
  • Maximum Amount
    P2, 500,000 (Limit will be decided on merits of each cases)
  • Period:
    – On demand, subject to annual review for working capital limits.
    – Not exceeding 60 months subject to annual review.
  • Margin:
    15% to 35% depending upon value of other collateral security
  • Rate of Interest:
    Minimum at Prime lending rate and maximum depending on the credit rating of the applicant. Payable at monthly rests.
  • Security:
    1. Loan agreement signed by the borrower
    2. Personal Guarantee of directors/partners/proprietors
    3. Charges on securities viz stock, book debts, immovable properties etc.
    4. Offshore Bank Guarantee
  • Insurance:
    Stock to be insured against exposed risks, for their full value and the insurance policy to be ceded in bank’s favour and charge of cessation noted in the books of the Insurance Company.
  • Other Covenants
    1. The assessment of Working Capital requirement will be done on the basis of Audited/Estimated/Projected accounts and the annual sales figures. Normal Trade cycle, Inventory, receivable levels in the line of activity will be the basis for arriving at required level of finance.
    2. Reduction in interest Rates may be considered depending upon the availability of additional collaterals such as first mortgage on immovable property, lien on deposits with the Bank etc.
    3. Where the entire working capital requirements of a customer are catered to by our Bank, the borrower should undertake to route all his business transactions through our Bank. The credit turnover in such accounts must be closely related to the gross sale of the company for any given period of time.
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Auto Loan

  • Target Group:
    Business firms Companies, Associates for meeting capital expenditure like land and building, plant and machinery, setting up of new unit or expansion
  • Eligibility:
    salaried person 20 times of Gross salary, Self Employed person 2.50times of gross annual income as per BURS Return.
  • Amount of Loan:
    New vehicle- 85% of the cost of vehicle, Old vehicle; 70% of the cost of vehicle
  • Rate of interest:
    Prime plus 1 for new vehicle and for old 3% above prime
  • Security:
    Lease agreement of the vehicle to be purchased and an undertaking from employer to remit the installments and noting of our Financial interest with Transport authorities in case of tie up arrangements.
  • Repayment Period:
    Maximum 60 months for new vehicle and 36 as per old vehicle
  • Other terms:
    (a) Deductions not to exceed 60% of the total salary
    (b) For Individuals salary account with us for 6 months
    (c) For Corporate business account with us
    (d) Salary account not necessary in case of tie up arrangement
  • Arrangement fee:
    Processing charges-0.50% minP300, Documentation Charges P300
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Home Loan

  • Target Group:
    Employees working with Govt./parasitals/ reputed organizations. Self Employed persons
  • Purpose:
    (a) For construction /acquisition of new dwelling unit
    (b) For purchase of old dwelling unit not more than 5/7 years
    (c) For purchase of plot and construction of house thereon
    (d) For repair/ renovation
  • Eligibility:
    salaried person 25 times of Gross salary, Self Employed person 2.50times of gross annual income as per BURS return. For salaried person satisfactory operative account should be with us for at least 6 months.
  • Max amount:
    P2.50mn.
  • Interest:
    From Prime plus 2 % to Prime rate depending upon the value of security and repayment capacity, take home salary, cash margin provided etc
  • Repayment Period:
    Maximum180 months including moratorium
  • Margin:
    25% on construction/ repair and renovation 30% on purchase of old dwelling unit and 35% on purchase of plot
  • Security:
    Mortgage of property
  • Other:
    Deductions not to exceed 60% of the total salary
  • Arrangement fee:
    Processing charges-0.50% minP300, Documentation Charges P300. Legal charges actual
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Personal Loan to Employees

  • Target Group:
    Employees working with Govt./Parastatals/ reputed organizations. Self Employed persons for meeting their personal expenses
  • Eligibility:
    5 times of net salary
  • Amount:
    P5, 000 to 50,000
  • Security:
    Loan agreement & Undertaking from the employer to remit the installments, in case of Corporate Tie up arrangements. In other cases satisfactory operated salary account should be with us for at least 6 months.
  • Repayment Period:
    From Prime plus 2 % to Prime rate depending upon the value of security and repayment capacity, take home salary, cash margin provided etc
  • Other terms:
    (a) Deductions not to exceed 60% of the total salary
    (b) For Individuals salary account with us for 6 months
    (c) Rate of interest 5% above prime rate
    (d) Salary account not necessary in case of tie up arrangement
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Loan to Salaried Person

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Educational Loan

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Loan to Govt Employee

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