What makes Bank of Baroda Business Loan different?

A business loan is majorly useful for the people who wish to start their own business but falling short of money. Bank of Baroda is people’s bank and the business loan is designed so that you can get higher loan amount to achieve your goals. In this article, you will get to know the details of the loan. 

What are the documents required for the approval?

The list of documents required for a business loan are mentioned below:

• PAN Card – For Company /Firm/ individual
• Identity Proof : Copy of Aadhaar Card/Passport/Voter’s ID card/Pan Card/Driving License
• Address Proof : Copy of Aadhaar Card/Passport/ Voter ID-Card/Driving License
• Bank Statement (latest 6 months)
• Latest ITR along with computation of income, Balance sheet and Profit & Loss a/c for the last 2 years. Financial should be CA Certified /Audited.
• Proof of continuation (ITR/Trade license /Establishment /Sales Tax certificate)
• Other Mandatory Documents (Sole Prop. Declaration Or Certified Copy of Partnership Deed, Certified true copy of Memorandum & Articles of Association (certified by Director) & Board resolution (Original)

What is the eligibility required for the loan?

For a Bank of Baroda business loan accepts applications from the following:

• Individuals
• Proprietorships
• Partnership Firms
• Co-operative societies

What are the details you have to fill in the application form?

Below are the details that you need to mention in the business loan application form:

• Name of loan
• Constitution (Proprietorship, Individuals, Partnership Firm, Private Ltd., Public Ltd, Trust or other)
• Account number
• Name of the firm
• Applicant details and recent photograph
• Firm details (Office address, website, date of incorporation, industry  type)
• Contact details
• Residence address
• Co- obligant/ Guarantor details along with recent photograph
• Income details
• Loan details

How can you check your EMI?

The role of a loan calculator is to show the payments details of the loan such as monthly installments (EMI). You also get to know the total repayment amount which is the total of the interest and the principal amount. You can use this calculating tool as many time as you want as it is available online. It is convenient to use and is also free of cost.

You just have to mention basic details such as the loan amount, interest rate, and tenure. Since the calculator takes into account the monthly rate, it converts the annual rate to show you the result of the monthly EMI. This calculator makes it easier for you to prepare yourself according to the future expenses and hence makes it possible for you to do the smoother repayment. You can use this tool even before applying for it or during the loan and move ahead accordingly.

What is the maximum tenure for business loans?

The maximum tenure available at Bank of Baroda is 5 years. However, the minimum tenure for which you have to pay the EMI is between 1 year to 3 years. So, you have to continue the loan for at least a year before you close it.

What is the processing fee for the loan?

Bank of Baroda charges no processing fee on the loan which means that you can get the disbursal of the loan without paying any fee. As a result of which, the disbursal amount is the maximum if you take a loan from BoB as compared to other banks where you will have to pay this fee.

What is the maximum loan amount you can get?

The maximum loan amount you can get on a business loan is Rs. 10 lakhs. There is no minimum amount limit for Mudra Loan (Business Loan). The loan amount under different schemes is mentioned below:

SHISHU: Loans sanctioned under the scheme up to Rs.50000

KISHORE: Loans sanctioned under the scheme from Rs.50001 to Rs.5.00 lakhs

TARUN: Loans sanctioned under the scheme from Rs.5,00,001 to Rs.10.00 lakhs

What is the interest rate on the loan?

At present, Bank of Baroda has reduced its 1 year MCLR to 8.30% and the business loan is spread as mentioned below:

Limit                                                 Micro Enterprises                                  Small Enterprises

For loan amount up to Rs. 50,000       MCLR+SP                                          (MCLR+SP)+0.50%

Above Rs. 50,000-2,00,000   (MCLR+SP)+0.50%                                        (MCLR+SP)+0.70%

Above 2 lakhs to 10 lakhs    (MCLR+SP)+0.70%                                          (MCLR+SP)+0.85%