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Baroda Traders Loan

Baroda Traders Loan is for working capital requirement. Demand Loan for purchase of shop/ renovation/ purchase of equipments, furniture fitting, working capital purpose etc. This loan is also applicable for non-fund based facilities i.e. Bank Guarantee and Letter of Credit.

Facility
Eligibility
Margin Contribution
Loan Amount
Fees and Charges
Terms & Conditions

Overdraft, Loan, Guarantee, AB/TR

Traders who are engaged in trade of any commodity/ goods required by the community and trading in them that is not prohibited by law or opposed to public interest.
The business units should have been established in the line of business for a minimum period of 2 years.

35% on market value as per recent valuation report of immovable property (valuation carried out in the last one year can be accepted)
35% on market value of motor vehicles
10% on Bank’s own FDRs
15% on the surrender value of Life Insurance Policies

Maximum limit is $200000
Working capitals limit up to 40% of the projected sales subject to verification of VAT returns of previous years/quarters or Advance value of collateral assets to be charged, whichever is lower.
Demand loan to be considered need based subject to a maximum of 50% of the projected sales or Advance value of securities to be charged, whichever is lower.
Working capital advance, Demand loan and Non fund based facilities together should not exceed advance value of collateral security or maximum amount under the scheme guidelines, whichever is less.
Repayment period up to 84 months in case of Demand Loan.
Property mortgaged/ vehicles to be insured comprehensively as per bank’s norms.

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Motor vehicles registered within 6 years may be considered as security for the purpose of determining the advance value up to 20% of the total value of securities offered. However, if the motor vehicles registered are more than 6 years, the borrower may either replace by suitable value of security or the advance value may be recalculated without considering the motor vehicles beyond 6 years.
Borrowers to route the sales and all other transactions through their Overdraft/Current A/c (in case of loan) with the branch.
Wherever the property is acquired out of Demand Loan availed, the property is to be mortgaged to us.
In case of Demand Loan margin contribution of 25% is to be brought by the borrower
Obtaining of financial statements i.e., Balance Sheet and Profit & Loss A/c up to F$ 200,000 is dispensed with. However, declarations on annual sales supported by Returns/Assessment on VAT/ Income Tax etc. to be submitted.
Where the VAT returns are not required to be filed, financial statements for limits below F$200,000 to be obtained.
In case borrower intends to avail Demand Loan, total loan installments including the proposed installments not to exceed 80% of the projected Net Profit and Depreciation declared by them. The projected net profit should be in line with actual profits earned by the borrower.
In case of D/L, repayment to be commenced after one month of first disbursement
Valuation of the property is to be carried out every 4 years.
if the credit turnover in the account in the preceding month is not adequate to cover the interest debited, then interest debited be recovered separately.
Terms and Condition Apply