• Bank of Baroda Short Term Loan

    Supporting upcoming and the growth of enterprises and small and budding enterprises has always been on the list of Bank of Baroda. With the Small and Medium enterprises sector booming today, Bank of Baroda has moved their strategy in helping them with funding rather than with larger corporates. Bank of Baroda has a Small and Medium Short Term Loans for the small and medium enterprises to cover the shortfall of funds and requirement for liquid cash.

    Purpose of Bank of Baroda’s Small and Medium Short Term Loan

    The purpose of this loan is to ensure that growth of enterprises and even small and budding enterprises allowing them to cover expenses of shortfall in businesses of temporary nature or the need for liquid cash which is a necessity.

    What is the eligibility criteria?

    Any enterprises that wish to take up this loan need to be a legitimate Micro Small and Medium enterprise. The Micro Small and Medium enterprise must have a good credit rating for at least 3 years, and must be willing to produce statements like balance sheets, profit and loss accounts, the applicant must also have 3 years of satisfied dealings with the bank. The bank will also neglect a negative variance, if any, but to a maximum of 10%.

    What is the maximum amount of loan I can avail?

    The maximum loan amount for Micro Small and Medium enterprise will be up to 25% of the working capital, this again will depending of the enterprise’s credit rating. The amount can range anywhere between Rs. 10, 00, 000 - Rs. 250, 00, 000

    What is the rate of interest on Bank of Baroda’s Small and Medium Short Term Loans?

    The base rate of Bank of Baroda is 9.65% as of 21st November 2015.

    Loan amount

    Micro Enterprises

    Small Enterprises

    Medium Enterprises

    50, 000

    Base Rate (BR) 9.65%

    BR + 0.50%


    50,000 - 2,00,000

    BR + 0.50%

    BR + 1.00%


    2,00,000 - 10,00,000

    BR + 1.00%

    BR + 1.25%


    10,00,000 - 25,00,000

    BR + 1.25%

    BR + 1.75%

    BR + 2.00%

    What are the documents required?

    • Mortgage of fixed assets of the company that is equitable, first charge or extension of existing first charge wherein the assets cover is a minimum of 1.25.
    • The guarantees of all the directors or will require a third party guarantors with the coverage power.
    • The charge on the current assets of the facility with adequate drawing power.

    What are the terms for Bank of Baroda’s Small and Medium Short Term Loans?

    The repayment or the mortgage period will be a maximum of 180 days and a minimum 90 days. There will also be a 25% concession in applicable charges under the processing fees bracket.

    How do I apply for this loan?

    You will need to visit your nearest branch to apply for this loan with all relevant documents

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