Bank Of Baroda has been in business from the last 102 years. They have a huge customer base and they serve them through a huge ATM network and 3227 branches spread all through the country.  Bank Of Baroda Business Loan have an equal presence in the business arena in which they go ahead and finance SME's and big corporate houses. Kinds of BOB business loan, BOB business loan interest rate and BOB business loan eligibility is listed below.

BOB business loan interest rate: Bank Of Baroda Business loan give loan under the following category. According to the BOB business loan review the different kinds of loans given to the corporates are listed below:

• Working Capital Finance
• Term Finance
• Small Scale Industries loan
• Baroda SME loan pack
• Traders Loan

According to the BOB business loan review under the Baroda SME loan pack their are many kinds of loan. Broadly their are two kinds of loan for SME's.

• SME short term loan
• SME medium term loan

SME short term loans is given to businessmen to meet out short term lack of fund in the system. According to the Bank of Baroda business loan all companies which are in small, medium and micro enterprises can go ahead and apply for the loan. According to the BOB business loan eligibility the business should have a turnover of minimum Rs.1 crore to Rs.150 crore.

The other kind of  BOB business loan given to larger corporates is Wholesale loan. It is a loan given to larger and mid corporates. The minimum turnover of corporates for such loan is Rs. 500 crore and above.  BOB business loan eligibility for wholesale loan for mid sized companies is Rs. 100 crore.

BOB Business Loan Review And Eligibility:

To avail Bank Of Baroda Business Loan the company should have a good rating. The BOB business loan eligibility would need company audited profit and loss account and balance sheet should be given to the bank. The financial performance of the company should be good and if the company has a negative trend in performance should not be greater than 10%.

Debt equity ratio should not be more 4.5:1.

Ratio between term liability and equity ratio should not exceed 3:1.

DSCR should not be below 1.75:1

The company needs to have a good credit rating with the bank.

BOB business loan interest: According to the  BOB business loan interest rate the companies would be able to avail the loan at the current interest rate prevalent in the market. The  BOB business loan interest will be dependent on the market forces and the RBI guidelines. The current  BOB business loan rate is 9% base rate for all kinds of business loan.

According to the  BOB business loan rate for letter of credit with maturity from 1to 90 days is 9.50%.

According to the  BOB business loan rate for letter of credit with maturity from 91 to 180 days is 9.75%.

According to the  BOB business loan rate for letter of credit with maturity for more than 180 days is 13% - 13.5%

Bob Business Loan Documentation:

According to the BOB business loan eligibility the corporate would need to produce the following documents.

Proof of identity

Proof of address

6 months bank statement

2 years form 16

Duly filled application form

2 photographs

Audited Profit and Loss Account & Balance Sheet of the company.

The BOB business loan is available for medium term period and working capital shortage.

BOB Business Loan Review shows that documents required are specific to type of business and more details for documents required are available on the bank website.

Procedure For Application For The Loan:

 Corporates can go ahead and apply for the loan by getting in touch with their respective relationship manager or going to the website and downloading the agreement form and submitting it to the bank.

BOB Business Loan Period And Prepayment Penalty:

BOB Business Loan Review shows that BOB Business Loan short term loan can be availed for maximum loan tenure 180 days and minimum for a period of 90 days for working capital loan. The medium term loan is given for a period of 36 months for medium term loan. This needs to be paid back in quarterly or half yearly installments.  The loan  has a prepayment penalty of 1% if repaid within a period of 24 moths.

BOB Business Loan Tax Benefits:

One can get tax benefits if any according to the Income Tax Act 1961 which varies yearly according to the changes made by the Government. Currently there are no taxes benefits applicable to the customers.

More details on BOB Business Loan eligibility and BOB Business Loan Interest Rate etc. are on the official site at http://www.bankofbaroda.com/