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SME Products

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SME Loan Products

Baroda SME Loan Pack SME Short Term Loans SME Medium Term Loans Baroda SME Gold Card Baroda Laghu Udhyami Credit Card Baroda Artisans Credit Card (BACC) Baroda Overdraft Against Land and Building Baroda Vidyasthali Loan Baroda Arogyadham Loan Composite Loans


SME Loan Products

Collateral Free Loans under Credit Guarantee Fund Trust Scheme for Micro & Small Enterprises

Scheme for Financing Energy Efficiency Projects

Scheme for Financing Existing Borrowers for Purchase of New Vehicles


Baroda SME Loan Pack

Baroda SME Loan Pack provides single line of credit for meeting SME borrowers’ working capital as well as long term requirements within the overall limit approved by the bank.

Purpose : Provide hassle free credit for working

capital (fund based and non-fund based) as also capital expenditure related to the business of the borrower within the overall composite limit sanctioned to the borrower.



ELIGIBILITYExpanded SME as per SME Policy guidelines 2009.

COMPOSITE LIMIT 4.5 times of borrower’s tangible net worth

as per last audited Balance Sheet, or, Rs. 5 Crores, whichever is lower.

MARGIN – 25 %

RATE OF INTEREST As per credit rating of the borrower



SECURITY Exclusive charge on the assets of the enterprise. Personal Guarantees of all promoter

Directors/partners. Charge on the unencumbered personal properties

of the partners, promoter Directors, wherever applicable (Will not be applicable in cases covered under CGTMSE scheme)

Third party guarantee in case of credit line above Rs. 100.00 lacs in case of Micro and Small Enterprises as per regulatory definition.

Any other collateral for the credit line above Rs. 25.00 lacs for SMEs as per expanded definition (i.e. based on Turnover criteria and Medium Enterprises) to maintain asset coverage ratio above 1.25)



Documentation As per the drafts approved by our Legal

Department. Usual Service charge

Financial ratios should be minimum as under: Current Ratio- 1.20, D/E ratio (TTL/NW) 3:1, D/E ratio (TOL/NW) 4.5:1, Asset Coverage Ratio - 1.25



The provisions of CGTMSE would be applicable for credit lines up to Rs. 100.00 lacs in case of MSE units.

Credit rating applicability would be as per Domestic Loan Policy-2009 norms.

Stock/Book Debts statement to be obtained every month/as per credit rating.

Book debts statement to be certified by Chartered Accountant on quarterly basis.

Pre sanction inspection to be carried out and report to be kept on record.

Thereafter inspection to be carried out on annual basis.


SME Short Term Loans

PURPOSE To meet temporary shortfall / mismatch in liquidity, for meeting

genuine business requirements only. The facility is not to be made available for other purposes like

repayment of loans of other banks or institutions, unsecured loans etc. or for any purpose not related to the borrower’s activity.

ENTERPRISES GROUP SME as per expanded definition

ELIGIBILITY CRITERIA Satisfactory credit rating for the last three years (BOB-4 & 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 3 years. No major inspection irregularity


SME SHORT TERM LOAN

Limit BOB 1,2,3 25% of Existing working capital limit

Limit BOB4 20% of existing working capital limit

Min

Max

10 lacs

250 lacs


SME Short Term Loans

PERIOD Not exceeding 180 days – minimum 90 days

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 (ZH can waive the condition if delay in mortgage)

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 on working capital limits

PROCESSING CHARGES / Upfront fees 25% concession in usual chargesDocumentations charges : As Applicable


SME Short Term loan

Discretionary Lending PowerBH Scale III Upto 25 Lacs

BH Scale IV Upto 62.50 Lacs

BH /Executives V & VI Upto 250 lacs


SME Short Term loan

Need not be referred to SMELF

PSR / Disbursement permission as per guidelines

Time Limit : Branch : Maximum 5 Working days Beyond Branch power : Max 10 working days.

Letter of request to be obtained

Sanction letter to be issued acceptance is to be obtained.


SME Medium Term Loans

PURPOSE To augment enterprise’s working capital gap

and to help in improvement of current ratio and also for meeting genuine business requirements.

The facility will also be available for repayment of secured and unsecured Loans of other banks or institutions, but not for any purpose, which is not related to the enterprises activity.

ENTERPRISES GROUP SME as per expanded definition



ELIGIBILITY CRITERIA Satisfactory credit rating for the last three years

BOB4 and 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 %.

TTL /TNW not more than 3:1 TOL/TNW not more than 4.5:1 and average DSCR should be not less than 1.75:1.

Satisfactory dealings with the Bank for at least Three years.

No major inspection irregularity

PERIOD Not exceeding –36- months, to be repaid in equal

quarterly or half-yearly installments.


SME MEDIUM TERM LOAN

Limit BOB 1,2,3 25% of Existing working capital limit

Limit BOB4 20% of Existing working capital limit MPBF

MinMax

25 lacs500 lacs



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 1.50

RATE OF INTEREST As per credit rating Prepayment penalty of 1 %, if loan is prepaid within

-24- months of drawdown.

PROCESSING CHARGES / Upfront fees 25% concession in usual rateDocumentation : Applicable chargesCredit Audit as per guidelines


SME Medium Term loan

Discretionary Lending Power

BH Scale III Upto 25 Lacs

BH Scale IV Upto 62.50 Lacs

BH /Executives V Upto 250 lacs

BH /Executives VI Upto 375 lacs

Zonal Heads / GM Upto 500 lacs


Baroda SME Gold Card

Baroda SME Gold Card envisages provision of additional limit of 10 % of the assessed eligible bank finance for Working Capital to existing Small & Medium Enterprises, on request along with regular application for Working Capital limits to meet emergent requirements.

PURPOSE To provide hassle free on the spot assistance to

take care of borrowers’ emergent requirements and tie up temporary mismatch in liquidity arising out of delayed payment by buyers, tax payment, execution of bulk orders, etc.

ELIGIBILITY Expanded as per SME policy guidelines


SME GOLD CARD

Eligibility:In case of existing accounts- A/c in Standard Category for last 2 years Obligor credit rating of “BOB- 4” and above working capital limits of Rs. 25/- lacs and

above.

In case of Take Over accounts:- Obligor credit rating of “BOB- 4” and above No deviation allowed in Take over norms while

taking over account working capital limits of Rs. 25/- lacs and

above.A/c with sole banking arrangement are only

eligibleMo major inspection irregularity


Baroda SME Gold CardRATE OF INTEREST As applicable for regular Cash Credit facility and as

per credit rating

PERIOD 12 months to be allowed on 4 occasions during the

year for a maximum period of 2 months on each occasion.

SECURITY As applicable to regular Cash Credit facility.

DOCUMENTATION No additional documentation / formalities required

at the time of availing facility every time as the 10 % additional limit will be a part of the regular sanction.


Baroda Laghu Udhyami Credit Card

PURPOSE To provide hassle free credit facilities to Small

Business units, Retail Traders, Artisans, Village Industries, Small Scale Industrial units and Tiny units, Professionals and Self Employed persons etc.

ELIGIBILE BORROWERS All existing customers in the category of Small

Business, Artisans, Village Industries, Small Scale & Tiny Units, Professionals and Self-employed persons having satisfactory track record and dealing with the bank for last 3 years.

LIMIT Maximum upto Rs. 10 Lacs per borrower.


Baroda Laghu Udhyami Credit Card

PERIOD / VALIDITY The limit fixed under the scheme will be valid

for a period of three years subject to internal annual review based on the conduct / operations of the account.

SECURITY Hypothecation of stock in trade, receivables,

machinery, office equipment etc. as specified for existing limit.

MARGIN 25 %.Rate of interest:As applicable to micro & small enterprises


Baroda Artisans Credit Card (BACC)

PURPOSE To provide adequate and timely assistance to the

artisans to meet their credit requirements - both investment needs as well as working capital - in a flexible and cost effective manner.

The scheme is implemented in rural and urban areas.

ELIGIBILE BORROWERS All artisans involved in production / manufacturing

process.

Preference given to artisans registered with Development Commissioner (Handicrafts).

Beneficiaries of other Government Sponsored loan schemes will NOT be eligible for coverage under BACC scheme.


Baroda Artisans Credit Card (BACC)

LIMIT Maximum Rs. 2 Lacs per borrower.

MARGIN For limits upto Rs. 25,000/- No margin For limits above Rs. 25,000/- but upto Rs. 2 Lacs

- 15 % to 25 % margin. Margin is subject to change as per RBI

guidelines from time to time or the bank's policy in this regard.

SECURITY Hypothecation of assets financed under the

scheme.


Baroda Overdraft against Land and Building

Baroda Overdraft against land and building is a unique product for financing working capital requirements against security of unencumbered land and building belonging to the unit or Promoters of the unit or their close relative.

PURPOSE To provide hassle free credit to SME

borrowers to meet working capital requirements fund based / non fund based.

ELIGIBILITY SME as per expanded definition.


OD against Land & building The Manufacturing/Service sector units (other than Retail

Trade) should have been established in the line of activity for a minimum period of 2 years.

In case of new Manufacturing/Service sector units (other than Retail Trade), facility may be considered if unit is established by our existing customers having satisfactory track record and the same is set up from their own sources.

Manufacturing and Service Sector units (other than Retail Trade) having less than two years establishment may be considered with the prior approval of one authority higher than the Sanctioning authority under whose powers the proposal falls.

Units with credit rating of BOB-6 and above as per CRISIL Module.

In case of take over of accounts in addition to the Product norms, the norms prescribed in Domestic Loan Policy 2009/SME Policy 2009 should be complied with.



LIMIT Minimum : Rs. 25 Lacs Maximum: Rs. 50 Lacs (for Rural branches) Rs. 200 Lacs (for Semi urban branches) Rs. 500 lacs ( for metro / urban branches)

SECURITY Mortgage of factory land and building and / or any other

property (Land & Building) belonging to promoters, viz. Directors, who will also

stand as Guarantors, Proprietor or Partners. Close relative of promoters father, mother, wife, son ,

daughter only provided they stand as guarantor In case of residential / commercial building, age of property

should not be more than 25 years.MARGIN 40 % of the market value of property mortgaged

Regional head can reduce to 35%



OTHER FEATURES Simplified assessment methods. Submission of stock / book debts

statements on half yearly basis. July , January End

Annual inspection of securities. Non-fund based facilities allowed by

earmarking Overdraft facility. Valuation of properties once in 3 years.Charges : As applicable.


Baroda Vidyasthali Loan

Baroda Vidyasthali Loan is a special scheme for financing Educational Institutions.

PURPOSE To meet the financial requirements for setting up the

institutions which includes construction of building, purchase of equipment etc.

for the new set up as also renovation of the existing facilities, purchase of instruments for imparting education training to the students. Overdraft for short term requirement,

Land if part of project cost max 20% and construction within 2 years.

ELIGIBILITY Educational institutions, Schools, Colleges and other

education bodies running education activities Note: HUF are not eligible.


Baroda Vidyasthali Loan

LIMIT Minimum Rs. 25 lacs Maximum Rs. 1000 lacsSECURITY Equitable mortgage of Land & Building (not

agricultural land). Hypothecation of Instruments & Equipment acquired

out of the loan and other assets of the Educational Institution.

Personal guarantees of the Promoters of the Institution.

MARGIN 25 % of the cost of the project.REPAYMENT PERIOD Maximum 84 months including moratorium period of

2 year, depending upon the cash flow.TEV study not required.ROI : Base rate + 3.5%


Baroda Arogyadham Loan

PURPOSE To meet the financial requirements for setting

up of new Nursing Home / Hospital including Pathological Laboratory

Expansion / renovation / modernization of existing Nursing Home /Hospital including Pathological Laboratory,

Purchase of Medical Diagnostic Equipments as also Office Equipments, viz. Computers, Air Conditioners, Office Furniture, Purchase of Ambulance etc.

To meet Working Capital requirements.

ELIGIBILITY SME expanded



Note: The Promoters should have requisite qualification in any branch of Medical Science from a recognized University and should have minimum 2 years of work experience.

LIMIT Rural Centers - Rs. 0.50 crores Semi-Urban Centres - Rs. 6.00 crores Urban & Metro Centres - Rs. 12.00 crores Working Capital limits upto 10 % of the annual sale or

gross income, subject to 20 % of the above ceiling limits in case of borrowers requiring both Term Loan and working capital facilities.

In case of borrowers requiring only working capital limit, 20 % of the above ceiling limit.



SECURITY Equitable mortgage of Land & Building / Premises of

Nursing Home / Hospital Hypothecation of Medical Equipment / Office Equipment

acquired out of loan amount. Personal guarantee of Promoter Directors in case of

Limited Companies and Trustees in case of Trusts. Hypothecation of medicines, receivables and other

chargeable current assets. Charge on unencumbered assets of Promoter Directors in

case of Private Limited Companies, or any other collateral by way of FDR,

mortgage of properties in the personal name of the relatives of Promoters, etc.

MARGIN – 25 %RATE OF INTEREST – As per credit rating of the borrowerREPAYMENT PERIOD – 35 months to 84 months including

moratorium depending upon the cash flow.


CGTMSE

CGTMSE stands for Credit Guarantee Fund Trust for Micro & Small Enterprise

Government of India and SIDBI have jointly set up the institution.

The trust became operational from 1st August 2000.

Earlier the scheme was called the Credit Guarantee Fund Scheme for Small Industries.

Name was changed to CGTMSE after enactment of MSMED Act 2006


CGTMSE One Time Guarantee Fees

Paid upfront:1. Within 30 days from the first disbursement

(TL)2. 30 days from CGDAN whichever is laterOr such date advised by the trust.

Upto Rs. 5 Lacs 1.00%

Above Rs. 5 Lacs 1.50%

NE including Sikkim upto Rs. 50 Lacs 0.75%


CGTMSE Annual fees

Facility upto Rs. 5 Lacs 0.50%

Facility above Rs. 5 Lacs 0.75%

On pro-rata basis for the first and last year and in full for the intervening years before 31 st May

If not paid on time policy will lapse can be renewed at the option of Trust subject to payment of interest @ Bank rate + 4%


Borrower Category

Maximum Guarantee Cover, where Credit facility is

Upto Rs.5 lakhAbove Rs.5

lakh to Rs.50 lakh

Above Rs.50 lakh to Rs.100 lakh

Micro Enterprises

85% of the amount in default / Rs.4.25 lakh

75% of amount in default / Rs.37.5 lakh

Rs.37.50 lakh plus 50% of amount in default above Rs.50 lakh / Rs.62.50 lakh

Women Enterpreneur / units located in North Eastern Region (Incl Sikkim)

80% of amount in Default / Rs.40 lakh

Rs.40 lakh plus 50% of amount in default above Rs.50 lakh / Rs.65 lakh

All other category of borrowers

75% of amount in Default / Rs.37.5 lakh

Rs.37.50 lakh plus 50% of amount in default above Rs.50 lakh / Rs.62.50 lakh

Extent of Guarantee cover


CGTMSE Our Bank’s Initiative

Sharing of One Time Guarantee fee and Annual service fee with the borrower on 50:50 basis for loans upto Rs. 50 lacs

For loans over Rs. 50 lacs and upto Rs. 100 lacs now covered under the scheme, the entire fees should be recovered from the borrowers.


Composite Loans

ELIGIBILITY Small Scale Industrial Units (including artisans, village and

cottage industrial units and tiny units in SSI Sector), and Small Scale Service & Business establishments engaged in industrial activities only.

PURPOSE Fixed capital investment and / or working capital

requirement. TYPE OF FACILITY – Composite loans. AMOUNT OF LOAN – Upto Rs. 100 Lacs

MARGIN Nil in case of composite loan upto Rs. 25,000/-. 15 % - 25 % in case of composite loans above Rs. 25000/-

and upto Rs. 100 Lacs.


Composite Loans

SECURITY Charge on assets created out of loan amount

and other collateral securities as determined on the merits of each case.

PERIOD OF REPAYMENT Minimum 3 years and maximum of 10 years

(which can be extended), with initial holiday of 12 months to 18 months.



PURPOSE Financing SMEs for acquisition of equipments,

services and adopting measures for enhancement of energy efficiency/conservation of energy.

ELIGIBILITY SME units financed by bank as also other units

desirous of shifting their account to Bank of Baroda.

LIMIT Upto 75 % of the total project cost, subject to

maximum of Rs. 1 crore. (Minimum amount of loan Rs. 5 Lacs).



Project cost may include the following: Cost of acquisition / modification /

renovation of equipment / software. Cost of alterations to existing machinery. Cost of structural / layout changes. Cost of energy audit / consultancy. Preparation of Detailed Project Report

(DPR).

REPAYMENT Maximum 5 years, including moratorium, if

any.



SECURITY For Sole Banking Accounts – Extension of

first charge on all fixed assets.

For Consortium / Multiple Banking Accounts – first charge on equipments acquired out of loan and collateral, if any,

The total security coverage being not less than 1.25.


Scheme for Financing Existing Borrowers forPurchase of New Vehicles

NATURE OF FACILITY – Demand Loan / Term Loan

PURPOSE For acquiring any type of new vehicle eligible for

Registration with Regional Transport Authority.LIMIT – Maximum Rs. 50 lacs.

ELIGIBILITY Proprietorship firms, Registered Partnership concerns,

Private Limited Companies, Limited Companies, Trusts, Co-operative Societies (Except individuals) under SME Segment with credit rating upto BOB-6 in CRISIL model

enjoying credit limits upto Rs. 25 lacs.Note – Credit limits referred here to include regular limits

enjoyed by the borrower and proposed loan for the purchase of vehicles.



The scheme will be applicable for take over of existing vehicle loans availed by our existing SME borrowers with credit rating upto BOB-6 subject to following:• There are no overdue with the existing

lender• Vehicle is not more than 3 years old• All other norms of the scheme are

complied with

Note: Other take over norms as per Loan Policy will not be applicable in these cases.



MARGIN 10 % of total cost of transport vehicle i.e. inclusive

of initial insurance premium, RTO Tax, Octroi, body building charges & other incidental charges in case of new vehicle.

PERIOD Maximum 60 months subject to review every year.

The facility to be included in the regular review proposal.

REPAYMENT OF TERM LOAN In 60 monthly installments depending upon the cash

flow. Interest to be serviced every month.



PROCESSING CHARGES –50 % concession in applicable chargesOTHER CONDITIONS Credit Rating is to be done as per extant guidelines wherever

required but rate of interest shall not be linked with the credit rating.

Inspection to be carried out as per extant guidelines and inspection report to be kept on record.

Branch to ensure end use of the funds. Whenever borrower is agreeable, an undertaking to extend

charge on the existing assets as and when required by the bank, to be obtained.

CLASSIFICATION OF ADVANCES SME if borrower complies with Regulatory definition. OTHERS

All other terms and conditions for vehicle financing to be complied with, including obtaining

Blank TTO forms, RTO Registration, Power of Attorney, etc.

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