• Bank of Baroda SME Term Loan

    The growth of enterprises and small and budding enterprises has always been on the list of Bank of Baroda. This sector booming today and need finance to help them along the way, Bank of Baroda has a products specifically designed Small and Medium Enterprises called the Baroda Small and Medium Enterprises Medium Term Loans.

    Purpose of the loan

    The purpose of this loan is to ensure that the enterprises have a single line of credit to the applicant from Small and Medium Enterprises to finance their requirement of working capital, and long term commitments as well.

    Eligiblity criteria

    Any enterprises that wish to take up this loan need to be a legitimate Micro Small and Medium enterprise. The MSME 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.

    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 net worth as per the last balance sheet, or Rs. 5 crore whichever is lesser. The margin charged would be 25%.

    Interest rate

    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%

    Documentation

    1. 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.
    2. The guarantees of all the directors or will require a third party guarantors with the coverage power.
    3. The charge on the current assets of the facility with adequate drawing power.

    Loan Term

    The repayment or the mortgage period will be a maximum of 36 months. There will also be a 25% concession in applicable charges under the processing fees bracket. The prepayment penalty of 1% will be charged if paid within 24 months.

    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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