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Get Loan for Small and Medium Enterprises from Bank of Baroda

Introduction

During 1970s, the commercial banks were primarily the financial bases for every industry, the then Government decided to nationalize all of them mainly to make them available for the reach of Small and Medium Industries. Bank of Baroda, which was considered one of the five major commercial banks of those days, was one of those 18 banks which were nationalized.

Bank of Baroda has been offering finance to small and medium industries, which goes with its social commitment and policy. Every successful member of these sector of business has been obtaining loan from Bank of Baroda for its funding the business.

Bank of Baroda Loan Schemes

While Bank of Baroda offers various loan schemes for education, home purchase or construction, vehicle purchase, personal loans etc, the Baroda Traders Loan particularly enables small and medium industries to avail loan from Bank of Baroda schemes up to Rs 400 lakhs as loan or overdraft, repayable in a maximum period of 60 months.

These loans have a few conditions which can be complied comfortably by the borrower, such as

  • the loan should be for a minimum amount of Rs 25000
  • Maximum can be Rs 400 lakhs if it is for an urban industry and Rs 300 lakhs if it be rural
  • the Margin must be to the extent of 40% of market value, 10% in the form of Bank’s deposit and 15% face value of Government Securities, such as NSCs
  • Security should be in the form of collaterals of mortgaged property or Government securities.

The interest payable will be at a rate of 3% in addition to the base rate, which will be reviewed from time to time, the present base rate being 10.25%.

How to approach

Bank of Baroda has branches throughout the country and also worldwide. The individual or the business entity can approach any of their branches to assistance. The Bank authorities will give complete details of documents to be produced for availing the loan and also the margin and security requirements for the particular loan application. Once these formalities are complied with, the bank will release the funds through their Account, which can be availed in the form of immediate loan disbursement or Overdraft facility. In the case of new ventures, the bank may require submission of a project report and other viability related documents for granting the loan.

Bank of Baroda having committed for the industrial growth of the Country, is making all efforts to encourage small and middle level industries through their loan schemes.

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