Bank of Baroda SME Term Loan

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.

Documentation

• 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.

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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