Bank of Baroda MSME Loan
Bank of Baroda (BOB) offers various types of loans to cater for the financial needs of Micro, Small & Medium Enterprises (MSMEs). Bank of Baroda MSME loans include the Baroda Healthcare Scheme, Credit Guarantee Scheme for Start-ups (CGSS), Financing Solar Projects, Digital Mudra Loan, Digital MSME Loan, Pradhan Mantri Mudra Yojana, Scheme For Financing Textile Units, and so on.
BOB MSME Loan Interest Rate
The Bank of Baroda MSME loan rate of interest are linked to the Base Rate (BR), Marginal Cost of Funds Based Lending Rate (MCLR) and Baroda Repo Linked Lending Rate (BRLLR). Following are the BOB MSME loan interest rates for various types of BOB MSME loan schemes:
A. Interest Rate for Mid/Large Corporate/ Non-regulatory/SME expanded advances linked to Base Rate (BR) w.e.f 12.10.2022
| Rating | Large & Mid Corporate Advances | Effective Interest Rate (p.a.) | Non-regulatory SME /SME Expanded Advances | Effective Interest Rate (p.a.) |
|---|---|---|---|---|
| CR-1 | BR+1.25% | 10.65% | BR+1.25% | 10.65% |
| CR-2 | BR+1.80% | 11.20% | BR+1.35% | 10.75% |
| CR-3 | BR+3% | 12.40% | BR+1.85% | 11.25% |
| CR-4 | BR+3.75% | 13.15% | BR+2.40% | 11.80% |
| CR-5 | BR+4.75% | 14.15% | BR+3.25% | 12.65% |
| CR-6 & Below | BR+7% | 16.40% | BR+5.70% | 15.10% |
*Base Rate (per annum) w.e.f. 12.04.2023 is 9.40% p.a
B. Interest Rate for Mid/Large Corporate/ Non-regulatory/SME expanded advances linked to MCLR
| Rating | Large & Mid Corporate Advances | Effective Interest Rate (p.a.) | Non-regulatory SME /SME Expanded Advances | Effective Interest Rate (p.a.) |
|---|---|---|---|---|
| CR-1 | MCLR + 1.25% | 10.05% | MCLR + 1% | 9.80% |
| CR-2 | MCLR + 1.80% | 10.60% | MCLR + 1.25% | 10.05% |
| CR-3 | MCLR + 3% | 11.80% | MCLR + 2.45% | 11.25% |
| CR-4 | MCLR + 3.75% | 12.55% | MCLR + 3% | 11.80% |
| CR-5 | MCLR + 4.75% | 13.55% | MCLR + 3.85% | 12.65% |
| CR-6 & Below | MCLR + 7% | 15.80% | MCLR + 6.25% | 15.05% |
*1-Year MCLR w.e.f. 12.01.2024 is 8.80%
C. Interest Rate for Financing Protected Cultivation (Green House/Polyhouse, etc.) Projects
| Limit | Tenure | Applicable Interest Rate | Effective Interest Rate (p.a.) |
|---|---|---|---|
| Up to Rs. 3 Lakhs | All | 1-Year MCLR + SP | 9.05% |
| Above Rs. 3 Lakhs & less than Rs. 25 Lakhs | All | 1-Year MCLR + SP + 1.25% | 10.30% |
| Rs. 25 Lakhs & above | 3 years up to 5 years | 1-Year MCLR + SP + 2.10% | 11.15% |
| Above 5 years up to 7 years | 1-Year MCLR + SP + 2.15% | 11.20% | |
| Above 7 years up to 9 years | 1-Year MCLR + SP + 1.85% | 10.90% |
*1-Year MCLR w.e.f. 12.01.2024 is 8.80% & Strategic Premium (SP) is 0.25% (B)
D. Interest Rate for Financing Farmer Producer Companies (FPC)
| Limit | Applicable Interest Rate | Effective Interest Rate (p.a.) |
|---|---|---|
| Above Rs. 3 Lakhs & less than Rs. 25 Lakhs | 1-Year MCLR + SP + 1.25% | 10.30% |
| Above Rs. 25 Lakhs | ||
| For tenure less than 3 years | 1-Year MCLR + SP + 2% | 11.05% |
| For tenure 3 years & above up to 5 years | 1-Year MCLR+ SP + 2.10% | 11.15% |
| For tenure above 5 years & up to 7 years | 1-Year MCLR+ SP + 2.15% | 11.20% |
| For tenure above 7 years & up to 10 years | 1-Year MCLR+ SP + 1.85% | 10.90% |
*1-Year MCLR w.e.f. 12.01.2024 is 8.80% & Strategic Premium (SP) is 0.25% (B)
E. Interest Rate for Regulatory & Non-Regulatory MSME Loans
| Limit | Micro | Effective Interest Rate (p.a.) | Small | Effective Interest Rate (p.a.) | Medium | Effective Interest Rate (p.a.) |
|---|---|---|---|---|---|---|
| For Limits up to Rs. 25 Lakhs (Regulatory) | ||||||
| Up to Rs. 50,000 | BRLLR + SP | 9.40% | BRLLR + SP + 2% | 11.40% | BRLLR + SP + 2.70% | 12.10% |
| Above Rs. 50,000 to Rs. 2 Lakhs | BRLLR + SP + 2% | 11.40% | BRLLR + SP + 2.20% | 11.60% | BRLLR + SP + 2.70% | 12.10% |
| Above Rs. 2 Lakhs to Rs. 10 Lakhs | BRLLR + SP + 2.20% | 11.60% | BRLLR + SP + 2.35% | 11.75% | BRLLR + SP + 2.70% | 12.10% |
| Above Rs. 10 Lakhs to Rs. 25 Lakhs | BRLLR + SP + 2.35% | 11.75% | BRLLR + SP + 2.50% | 11.90% | BRLLR + SP + 2.70% | 12.10% |
| For Limits up to Rs. 25 Lakhs (Non-Regulatory) | ||||||
| MCLR + SP + 2.75% | 11.80% | |||||
For Limits above Rs. 25 Lakhs and up to Rs. 5 Crores (Interest Rates Depend on CMR Rating)
| Eligible Immovable Security Coverage | Regulatory MSME | Non Regulatory MSM/ SME Expanded | ||||||
| Micro Enterprises | Effective Interest Rate (p.a.) | Small Enterprises | Effective Interest Rate (p.a.) | Medium Enterprises | Effective Interest Rate (p.a.) | Spread | Effective Interest Rate (p.a.) | |
| A. 100% and above | BRLLR+ 0.30% to BRLLR+ SP + 4.75% | 9.45% to 14.15% | BRLLR+ 0.35% to BRLLR+ SP + 5% | 9.50% to 14.40% | BRLLR+ 0.40% to BRLLR+ SP + 5.25% | 9.55% to 14.65% | MCLR + 0.45% to MCLR + SP + 5.25% | 9.25% to 14.30% |
| B. 85% to less than 100% | BRLLR+ 0.40% to BRLLR+ SP + 5% | 9.55% to 14.40% | BRLLR+ 0.45% to BRLLR+ SP + 5.25% | 9.60% to 14.65% | BRLLR+ 0.50% to BRLLR+ SP + 5.50% | 9.65% to 14.90% | MCLR + 0.50% to MCLR + SP + 5.75% | 9.30% to 14.80% |
| C. 70% to less than 85% | BRLLR+ 0.60% to BRLLR+ SP + 6.50% | 9.75% to 15.90% | BRLLR+ 0.65% to BRLLR+ SP + 6.75% | 9.80% to 16.15% | BRLLR+ 0.70% to BRLLR+ SP + 7% | 9.85% to 16.40% | MCLR + 0.75% to MCLR + SP + 7.25% | 9.55% to 16.30% |
| D. 55% to less than 70% | BRLLR+ 0.80% to BRLLR+ SP + 8.25% | 9.95% to 17.65% | BRLLR+ 0.85% to BRLLR+ SP + 8.25% | 10% to 17.65% | BRLLR+ 0.90% to BRLLR+ SP + 8.25% | 10.05% to 17.65% | MCLR + 0.95% to MCLR + SP + 8.25% | 9.75% to 17.30% |
| E. 40% to less than 55% | BRLLR+ 1% to BRLLR+ SP + 8.25% | 10.15% to 17.65% | BRLLR+ 1% to BRLLR+ SP + 8.25% | 10.15% to 17.65% | BRLLR+ 1% to BRLLR+ SP + 8.25% | 10.15% to 17.65% | MCLR + 1.05% to MCLR + SP + 8.25% | 9.85% to 17.30% |
| F. 30% to less than 40% | BRLLR+ 1.20% to BRLLR+ SP + 8.25% | 10.35% to 17.65% | BRLLR+ 1.25% to BRLLR+ SP + 8.25% | 10.40% to 17.65% | BRLLR+ 1.30% to BRLLR+ SP + 8.25% | 10.45% to 17.65% | MCLR + 1.35% to MCLR + SP + 8.25% | 10.15% to 17.30% |
| G. Less than 30% | BRLLR+ 1.65% to BRLLR+ SP + 8.25% | 10.80% to 17.65% | BRLLR+ 1.70% to BRLLR+ SP + 8.25% | 10.85% to 17.65% | BRLLR+ 1.75% to BRLLR+ SP + 8.25% | 10.90% to 17.65% | MCLR + 1.80% to MCLR + SP + 8.25% | 10.60% to 17.30% |
For limits above Rs. 5 Crores(FB & NFB)
| Internal Rating | Regulatory MSME | Effective Interest Rate (p.a.) | Non-Regulatory MSME | Effective Interest Rate (p.a.) |
|---|---|---|---|---|
| CR1 | BRLLR + SP + 0.50% | 9.90% | MCLR + SP + 1% | 10.05% |
| CR2 | BRLLR + SP + 1% | 10.40% | MCLR + SP + 1.25% | 10.30% |
| CR3 | BRLLR + SP + 1.25% | 10.65% | MCLR + SP + 2.75% | 11.80% |
| CR4 | BRLLR + SP + 2% | 11.40% | MCLR + SP + 3.50% | 12.55% |
| CR5 | BRLLR + SP + 3% | 12.40% | MCLR + SP + 4.50% | 13.55% |
| CR6 & Below | BRLLR + SP + 6% | 15.40% | MCLR + SP + 7% | 16.05% |
*For MSME Loans, applicable BRLLR is 9.15 % w.e.f. 14.02.2023 (Current RBI Repo Rate 6.50% + Mark-Up 2.65%), 1-Year MCLR w.e.f. 12.01.2024 is 8.80%, and SP is 0.25% (B)
F. Interest Rate for Export Credit
| Credit Rating | Micro & Small Enterprises w.e.f. 01.10.2019 | Effective Interest Rate (p.a.) | Medium Enterprises w.e.f. 01.04.2020 | Effective Interest Rate (p.a.) | SME Expanded w.e.f. 20.01.2020 |
|---|---|---|---|---|---|
| Pre-Shipment Credit | |||||
| CR 1 to CR 3 or CMR 1 to CMR 3 | BRLLR + SP + 0.50% | 9.90% | BRLLR + SP + 0.50% | 9.90% | MCLR (Tenor Based) + SP + 0.50% |
| CR 4 to CR 6 or CMR 4 to CMR 6 | BRLLR + SP + 0.75% | 10.15% | BRLLR + SP + 0.75% | 10.15% | MCLR (Tenor Based) SP + 0.90% |
| CR 7 to CR 10 or CMR 7 to CMR 10 | BRLLR + SP + 1.50% | 10.90% | BRLLR + SP + 1.50% | 10.90% | MCLR (Tenor Based) + SP + 1.50% |
| Post-Shipment Credit | |||||
| CR 1 to CR 3 or CMR 1 to CMR 3 | BRLLR + SP + 0.40% | 9.80% | BRLLR + SP + 0.40% | 9.80% | MCLR (Tenor Based) + SP + 0.40% |
| CR 4 to CR 6 or CMR 4 to CMR 6 | BRLLR + SP + 0.65% | 10.05% | BRLLR + SP + 0.65% | 10.05% | MCLR (Tenor Based) + SP + 0.80% |
| CR 7 to CR 10 or CMR 7 to CMR 10 | BRLLR + SP + 1.40% | 10.80% | BRLLR + SP + 1.40% | 10.80% | MCLR (Tenor Based) + SP + 1.40% |
*BRLLR is 9.15 % w.e.f. 14.02.2023 (Current RBI Repo Rate 6.50% + Mark-Up 2.65%) and SP is 0.25% (B)
Fees & Charges for the BOB MSME Loan
Apart from the applicable interest rate the borrower has to pay certain charges on the MSME Loan Bank of Baroda. These charges include processing fees, documentation charges, commitment charges, part prepayment charges, foreclosure charges, and so on.
Following are the charges applicable on some MSME loans at Bank of Baroda:
- Loan Guarantee Scheme for Covid Affected Tourism Service Sector
- Processing charges: Nil
- Forclosure / Prepayment charges: Nil
- NCGTC Guarantee fee: Nil
- Digital Mudra Loan
- Upfront fee/ Processing charges: As per the policy of the bank.
- Baroda Loan to Business Correspondents
- One-time guarantee fee: 1% in the case up to Rs. 5 Lakhs and 0.75% in cases up to Rs. 50 Lakhs sanctioned to units in the north-eastern region including the state of Sikkim.
- ASF: The ASF will be charged at specified rate (currently 0.5% in the case up to Rs. 5 lakhs) on a pro-rata basis for the first and last years and in full for intervening years.
Eligibility Criteria for Bank of Baroda MSME Loan
If you want any of the Bank of Baroda MSME loans apply online or offline if you meet the following eligibility criteria. These are the eligibility requirements for some popular BoB MSME loans:
1. Baroda Healthcare Scheme
- Borrower Constitution
- Business units with constitution Individual/ Partnership/ Proprietorship/ LLP/ Trust/ Society/ Private Ltd/ Public Ltd
- HUF not eligible as an entity and as a partner
- Age Criteria
- Minimum age: 25 years, at the time of loan application
- Maximum age: 65 years at the time of loan maturity
2. Credit Guarantee Scheme for Start-ups (CGSS)
- Start-up as recognized by DPIIT as per Gazette Notification(s) issued from time to time.
- Start-ups that have reached the stage of a stable revenue stream, as assessed from audited monthly statements over 12 months, are amenable to debt financing.
- Start-up not in default to any ending/ investing institution and not classified as Non-Performing Asset (NPA) as per RBI guidelines.
- Start-up whose eligibility is certified by the Bank for guarantee cover.
- If the existing borrower has availed of BGECL and wants to avail CGSS, the BGECL loan should be closed.
- Real Estate projects and HUF are not allowed.
3. Scheme for Financing Micro Units Engaged in Export
- All new (including takeover from other banks)/ existing Micro enterprises units engaged in exports.
- Partnership, Proprietorship, Private and Public Limited Companies, LLP.
- Minimum age: 25 years for the Proprietor of the Proprietorship Firm and 21 years for Individual Guarantor, at the time of loan application.
- Maximum age: 65 years at the time of loan maturity.
4. Financing Solar Projects
- Borrower Constitution
- Proprietorship Concern
- Registered & Unregistered Partnership
- Limited Liability Partnership (LLP)
- Private Limited Company
- Public Limited Company
- One Person Company
- Trust/ Society
- HUF, Section 8 Companies, under Companies Act 2013 & Association of Persons/ Body of Individuals are not eligible.
- Age criteria (only for Proprietor of Proprietorship Firm)
- Minimum age: 25 years for the Proprietor of the Proprietorship Firm and 21 years for Individual Guarantor, at the time of loan application.
- Maximum age: 65 years at the time of loan maturity.
5. Loan Guarantee Scheme for Covid Affected Tourism Service Sector (LGSCATSS)
- Target beneficiaries who don’t have a borrowing relationship with any Scheduled Commercial Bank (SCB).
- Target beneficiary who has existing borrowing relations with any SCB, may borrow from that particular bank or any SCB registered with NCGTC.
- If the target beneficiary has already availed the benefit under ECLGS (BGECL 1.0/ 3.0), they have to close/ pay off the dues under BGECL, before applying for coverage under the LGSCATSS scheme.
- If an eligible borrower has availed assistance under LGSCATSS, they have to close/ pay off the dues under LGSCATSS, before applying for coverage under ECLGS.
6. Digital Mudra Loan
- Individuals, Partnership Firm, Proprietary Concern, Private Ltd. Company, and Public Company.
- The applicant should not be defaulter to any bank/ financial institution and should have a satisfactory credit track record.
- The individual borrowers may be required to have the necessary skills/ experience/ knowledge to undertake the proposed activity.
7. Mudra Loan
- All non-farm enterprises
- Under micro-enterprises and small enterprises segment
- Engaged in income-generating activities, manufacturing, trading, and services
- Whose credit requirement is up to Rs. 10 Lakhs
- Allied agriculture activities have also been included under the PMMY scheme
8. Baroda Loan to Business Correspondents
- Business correspondents and kiosk operators who have valid agreements with service providers engaged by BoB to provide banking services under financial inclusion.
- Age: 18 - 60 years
- All vendors/ suppliers (falling within SME regulatory/non-regulatory classification only) of large real estate developers to which program limits have been approved.
Bank of Baroda MSME Loan Documents Required
Bank of Baroda MSME loan documents required may vary from one scheme to another. Following are the document requirements for some popular MSMS schemes:
1. Scheme for financing Micro units engaged in Export
- As per the Bank's extant guidelines
2. Loan Guarantee Scheme for Covid Affected Tourism Service Sector
- Documents required as per bank guidelines.
- Undertaking by borrower mentioning that borrower will not create any charge on the security held in the account covered by the NCGTC for the benefit of any account which is not covered by the guarantee, with itself/ in favour of any other creditor(s) to the detriment of NCGTC.
3. Digital Mudra Loan
- Valid mobile number and email ID
- PAN Details, GSTN username (if registered with GSTN)
- Mobile number registered with GSTN
- The latest 6 months' bank statement downloaded from the respective bank’s website/ received from bank mail ID
- Bank details such as Account number and IFSC Code
- Business registration details (if applicable)
- KYC of business and business promoter/ partner/ proprietor
- Associate concern details
- Existing loan details
4. Mudra Loan
- Duly filled Mudra Loan application form.
- Identity proof like Aadhaar/ PAN Card/ Driving License/ Passport/ Voter ID Card/ Government-issued photo ID of all applicants (in case of joint loans).
- Residence proof like latest Utility Bills/ Aadhaar/ Voter ID/ Passports/ Bank Account statements of all applicants (in case of joint loans).
- Business identity and address proof like Licenses/ Registration Certificates/ Deed Copies, etc.).
- Latest photographs of the applicant/s.
- Proof of minority (if any).
- Proof of loan requirements like equipment quotations, vendor details, etc.
Bank of Baroda MSME Loan Apply Online
If you want a BoB MSME loan apply online for the instant loan process. All you need to do is visit the official website of the bank, go to Loans & Advances under the MSME tab, and choose your desired MSME loan product. Click on Apply Now and fill in the online loan application.
FAQs
The maximum loan amount available under BOB MSME loans depends on the type of scheme chosen by the applicant, borrower’s requirement and eligibility.
The repayment tenure for an MSME loan of the Bank of Baroda depends on the type of scheme chosen by the applicant and the borrower’s repayment capacity.
Some Bank of Baroda MSME loans may require borrowers to provide collateral in the form of self-owned property, assets, deposits, stocks, goods, etc.
- Some loans are collateral-free
- Product-specific rating model
- Flexible repayment tenure and loan amount
- Loans available for all business requirements
- Some schemes have zero processing fees.
The foreclosure charges for BOB MSME loans depend on the type of scheme availed of and the tenure of the loan serviced by the borrower.