Bank of Baroda Small Business Loan

Sir would you please provide me detail about SME Medium Term Business Loans of Bank of Baroda?

As you want to know about Bank of Baroda SME Medium Term Business Loans Scheme so I am providing you information about it.

Purpose:

To help in improvement of current ratio and also for meeting genuine business needs. The facility will also be available for repayment of secured and unsecured Loans of other banks or Institutes, but not for any purpose, which is not related to the enterprises activity.

Enterprises group:

Micro, Small & Medium Enterprises as per Regulatory definition and all other entities with annual sales turnover of Rs. 1/- crore to Rs. 150/- crores.

Eligibility Criteria:

Satisfactory credit rating for the last three years

Latest Balance Sheet etc. should be available.

Satisfactory financial performance required in terms of Sales / turnover and profits. Negative variance, if any, should not be more than 10%.

Total Debt-equity ratio should not be higher than 4.5:1 and total Term Liability and equity ratio should not be more than 3:1.

Average DSCR should not be less than 1.75:1

Satisfactory dealings are required 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. 25 Lakhs and maximum of Rs. 500 Lakhs.

Period:

Not exceeding 36- months, to be repaid in equal quarterly or half-yearly installments.

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

Rate of interest:

As per credit rating for the additional loan

Prepayment penalty of 1%, if loan is prepaid within -24- months of drawdown

Processing charges / upfront fee:

25% concession in applicable charges

Rate of interest for Mid/Large Corporate:

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Answered By StudyChaCha Member