SME Short Term Loans By Bank of Baroda

PURPOSE:

  • To meet temporary shortfall / mismatch in liquidity, for meeting genuine business requirements only.

ENTERPRISES GROUP:

  • Micro, Small & Medium Enterprises as per Regulatory definition and all other entities with annual sales turnover up to Rs. 150/- crores.

ELIGIBILITY CRITERIA

  • Satisfactory credit rating for the last three years.(BOB-5 & ABOVE) 
     
  • Latest Balance Sheet etc. should be available. 
     
  • Satisfactory financial performance in terms of sales / turnover and profits. Negative variance, if any, should not be more than 10%. 
     
  • Satisfactory dealings with the Bank for at least three years.

LOAN AMOUNT:

  • Upto 25% of the existing Fund based Working capital limits (depending on the Credit Rating), subject to a minimum of Rs. 10 Lakhs and maximum of Rs. 250 Lakhs.

PERIOD:

  • To be repaid in 12 months including moratorium period.

SECURITY

  • First charge / Equitable mortgage of fixed assets of the company / firm or extension of existing first charge / equitable mortgage of fixed assets, ensuring that there is a minimum asset cover of 1.25.
     
  • Extension of Charge on current assets for the additional facility ensuring that adequate drawing power is available. 
     
  • Extension of all existing guarantees of Directors / Third party guarantees to cover the additional facility. 

RATE OF INTEREST:

  • As applicable to existing working capital facilities.

PROCESSING CHARGES:

  • 25% concession in applicable charges. 

It has been a long and eventful journey of almost a century across 25 countries. Starting in 1908 from a small building in Baroda to its new hi-rise and hi-tech Baroda Corporate Centre in Mumbai, is a saga of vision, enterprise, financial prudence and corporate governance.

It is a story scripted in corporate wisdom and social pride. It is a story crafted in private capital, princely patronage and state ownership. It is a story of ordinary bankers and their extraordinary contribution in the ascent of Bank of Baroda to the formidable heights of corporate glory. It is a story that needs to be shared with all those millions of people - customers, stakeholders, employees & the public at large - who in ample measure, have contributed to the making of an institution.

Get totally unsecured loan of 20 times of your net profit with the help of our team of Chartered Accountants.

Only requirement: 3 years ITR and turnover of 1 cr+. No collateral required.

Repayment Period: 1-5 years

Interested? Call us at +91-9911050333 or fill the form on the right

 

What is Business Loan?

Business loans, as the name suggests, are specifically intended for business purposes. Be it a startup or an established business, business loans offer a financial solution to problems faced by the firm and fills the cash flow gap. Be it for meeting day-to-day expenses, expansion of infrastructure or even product development, business loans play a huge role in setting the financial foundation strong for a business.

Characteristic of Business Loan

  • Businesses with bad credit can also apply but will have to provide proof that repayments can be done without delay.
  • Application fees are either non-applicable or minimal
  • The payment schedules are extendable with a nominal extra interest rate being applied
  • Extended lines of credit made available

Eligibility Criteria for Business Loan

  • Minimum 25 years of age and maximum 65
  • The business should have been in profit for atleast 3 years
  • A minimum turnover of 40 Lakhs for proprietorship, partnership firm and Pvt Ltd companies.
  • Income Tax return should be a minimum of 3 Lakhs
  • Net worth should be positive.
Who all can avail business loans?
  • Self Employed Individuals/Professionals
  • Sole Proprietorship Firms
  • Partnership Firms
  • Private Limited Companies

What documents are needed when applying for a business loan?

  • Identity Proof
  • Address Proof
  • Bank Statement for past 6 months
  • 3 years Income Tax Return with Balance Sheet, P&L and Audit Report

What are the tenure options available?

A minimum of 1 year to a maximum of 5 years.

Can I make part-prepayment?

Yes. Part pre-payment can be done with a minimum amount of Rs.50,000/- after 6 months from the date of disbursement of the loan. This can be made only once in a financial year.

Can I pre-pay my whole loan?

Yes. That is also possible, but after repaying a minimum of 6 EMIs. Pre-payment of loans will be charged as per the bank’s discretion.

How can I repay the loan?

The loan can be repaid through post-dated cheques or Electronic Clearing System.

Interested? Please leave your details and we will contact you soon