Take your business to next level with Traders' Loan by Bank of Baroda.

Traders’ Loan

Baroda Traders Loan is used for developmental purposes of shop such as purchase of equipment like computer, air conditioning, furniture etc. Get up to Rs. 10 crore with our traders loan. A loan for traders without security!


  • Benefits
  • Features
  • Eligibility
  • Interest rates & charges
  • Documentation
  • Most Important Terms and Conditions (MITC)

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  • Individuals (Resident) and non-individuals (Proprietorship/Partnership/Private Limited Companies/LLPs/Registered Co-operative Societies) engaged in trade of any commodity/goods in the physical form required by the community and trading in them is not prohibited by law or opposed in public interest.
  • Dealers in silver and gold jewellery (except for traders dealing in bullion/raw gold)
  • HUF and public limited companies are not eligible

Purpose

  • Overdraft: Working capital requirements
  • Term loan: Development of shop (purchase of equipment, computer, air-conditioner, furniture, etc.) but not for purchase of shop, for need-based requirements subject to a maximum of 25% of the working capital limit sanctioned.
  • Non-fund based facilities (Letter of Credit & Bank Guarantee

Non-fund facility can be considered over and above the working capital/term loan limit, but within the limit assessed based on value of securities and up to the specified maximum limit under the scheme. However, if requested, the non-fund based limit cannot be accommodated separately based on projected turnover or offered securities, the same can be considered as a sub limit of working capital limit

Rate of Interest:

Coming Soon...


Service Charges (Excluding GST) w.e.f. 20/06/2019:
  • OD: 0.35%
  • TL: 0.50%

Minimum: Rs. 8,500 (upfront) per property

Coming Soon

Target Group
  • Individuals (Resident) and non-individuals (Proprietorship/Partnership/Private Limited Companies/LLPs/Registered Co-operative Societies) engaged in trade of any commodity/goods the in physical form required by the community and trading in them is not prohibited by law or opposed in public interest.
  • Dealers in silver and gold jewellery (except for traders dealing in bullion/raw gold)
  • HUF and public limited companies are not eligible

Purpose
  • Overdraft: Working capital requirements
  • Term loan: Development of shop (Purchase of equipment, computer, air-conditioner, furniture, etc.) but not for purchase of shop, for need-based requirements subject to a maximum of 25% of the working capital limit sanctioned
  • Non-fund based facilities (Letter of Credit & Bank Guarantee)

Non-fund facility can be considered over and above the working capital/term loan limit, but within the limit assessed based on value of securities and up to the specified maximum limit under the scheme. However, if requested, the non-fund based limit cannot be accommodated separately based on projected turnover or offered securities, the same can be considered as a sub limit of working capital limit.


Eligibility

Individuals (Resident/Non-Resident Indians)

Resident Indians

  • Salaried/professionals/self-employed/business persons/agriculturists employed/engaged in business/profession for a minimum period of 3 years. Break in service can be considered for a maximum period of 3 months.
  • Minimum Gross Annual Income (average of last 3 years) should be Rs. 3 lakhs including co-applicants whose income is considered for eligibility of limit.

Non-Resident Indians (NRIs)

Any NRI holding valid Indian Passport, and having regular employment/self-employed/business for a minimum period of 2 years and holding a valid job-contract/work-permit for minimum 2 years in a foreign country.

Minimum Gross Annual Income (average of last 3 years) should be Rs. 5 lakhs including co-applicants whose income is considered for eligibility of limit.

HUF/Trust/Publiclimited company are not eligible under the scheme.


Type of facility
  • Term loan/demand loan/overdraft
  • NRIs will be granted term loan/demand loan only

Margin

40% on Realizable Value of immovable properties


Security

Mortgage of immovable properties

  • Residential Property (house/flat)
  • Commercial property (building/land & building)
  • Plot of land (not agricultural land)

Limit

Minimum: Rs. 2 Lakhs

Maximum: (For all category of borrowers)

  • Metro branches: Rs. 10 crores
  • Urban branches: Rs. 5 crores
  • Semi-urban branches: Rs. 3 crores
  • Rural branches: Rs. 25 lakhs

Repayment Period
  • Term Loan : 120 months
  • Overdraft : 12 months; subject to annual review

Income Criteria

Income Multipliers

Salaried

  • Gross Monthly Income (GMI) up to Rs. 75,000: 30 times of GMI
  • GMI above Rs. 75,000 up to Rs. 3 lakhs: 48 times of GMI
  • GMI above Rs. 3 lakhs: 60 times of GMI

Others
  • Gross Annual Income (GAI) up to Rs. 5 lakhs: 5 times of GAI
  • GAI above Rs. 5 lakhs up to Rs. 8 lakhs: 6 times of GAI
  • GAI above Rs. 8 lakhs: 8 times of GAI

Income to be considered for multiplier

For Salaried Persons

Average of last 3 months’ Gross Monthly Income (GMI)

For Others

Average of last 3 years’ Gross Annual Income (GAI)


Repayment Capacity:

For all category of borrowers

  • GMI up to Rs. 75,000: 50%
  • GMI above Rs. 75,000 to Rs. 3 lakhs: 60%
  • GMI above Rs. 3 lakhs: 70%

Unified Processing Charges

The unified processing charges which includes processing charges, documentation charges, document verification/vetting charges, pre-inspection (Contact Point Verification-CPV) charges, one-time post inspection charges, advocate charges for legal opinion, valuer charges for valuation (one-time at the time of sanction), bureau report charges, CERSAI charges, ITR verification charges), to be levied as detailed below.

For Term Loan

  • 1% of the loan amount with maximum Rs. 1,50,000
  • Minimum: Rs. 7,500 (upfront)**. The balance amount of processing charges will be recovered at the time of conveying sanction.

For Overdraft

  • Up to Rs. 3 crores: 0.35% of limit with maximum: Rs. 75,000
  • Above Rs. 3 crores: 0.25% of the limit without any maximum
Minimum

Rs. 7,500 (upfront)**. The balance amount of processing charges will be recovered at the time of conveying sanction.

** The above upfront charges are considered if only property is offered as security. If two or more properties are offered as security, Rs. 7,500 per additional property would be applicable as upfront charges in addition to minimum upfront charges as mentioned above (subject to overall stipulated maximum processing charges).


Inspection

Bank will have the right to inspect the borrower’s property at all times. From 2ndpost-sanction inspection onwards Rs. 100 plus GST per inspection to be charged from borrower.


Legal Opinion & Valuation Charges

Title of the property proposed to be purchased is to be clear, absolutely unencumbered and marketable to the satisfaction of the Bank’s solicitor/advocate. Title verification and valuation of the property will be done by the empanelled advocate/valuer of the Bank.

In case of limit above Rs. 1 crore, 2nd valuation of the property also to be obtained and to be satisfied upon. The lower of the 2 valuations to be considered while calculating the limit.


Insurance

Insurance of the property taken as security as per the valuation report for full value excluding the cost of land. The charges to be borne by borrower(s).


Mortgage Creations Charges

As per the Bank’s extant guideline applicable.


Other Expenses

Like stamp duty for execution of documents, registration charges varying from state to state and other related charges/expenses for the loan shall be borne by the Borrower.


Credit Information Report

Bank is authorised to make enquiries from any of the Credit Information Bureau and get the Credit Information Reports. Bank is also authorised to disclose from time to time any information relating to the loan to any Credit Bureau approved by Govt. of India or Reserve Bank of India without any notice to the borrower.


Commitment Charges

In all the working capital limits sanctioned, the minimum quarterly average utilisation of sanctioned limits should be 60%. In case of quarterly average utilisation of the sanction limit is less than 60% of the sanctioned limit, interest in the account will be charged on a minimum 60% of sanctioned limits on a quarterly basis.

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