Bank of Baroda Personal Loan | Benefits, Features, Documents Required

Bank of Baroda Personal Loan: The lending of money or cash by one or more persons or organizations or entities to another person or organization is called, in financial terms, a loan. The person who took the loan (the recipient) has to pay interest over the loan amount until the principal amount is repaid.

The debt document essentially contains details such as the principal amount being borrowed, the date of repayment, and the interest charged by the lender. A loan act often involves relocating the assets for a specific period between the lender and the borrower.

The interest added on the principal amount borrowed is the incentive of the lender. If the loan occurs under legal boundaries, the borrower must follow many rules, such as the loan covenants. However, loans are mostly seen from the financial side, but anything can be used as a loan subject in practice. Financial institutions such as banks and credit card providers have been the primary providers of loans.

Curious to check other banks’ offered Personal loan features, eligibility, interest rates, tax benefits, and a repayment plan. Go with our one-stop Personal Loan Page & swipe out your doubts within no time.

Personal loans can be seen as a form of installment credit. It is different from a credit card because a personal loan makes a one-time payment of cash to borrowers. The money is borrowed for a certain amount of time, and borrowers pay back the borrowed amount and interest in regular, monthly installments over the “term” of the loan.

Personal loans come to one’s rescue when one is short of money. It is straightforward to access personal loans, and they are granted so fast that many people take personal loans often to meet expenses. In recent times, a lot of people have Bank of Baroda loans.

In this article, we will discuss the Bank of Baroda loan yojana, including the interest rates charged by the bank and the Bank of Baroda micro personal loan application online.

Bank of Baroda

What is the Bank of Baroda Loan Yojana?

Also known as the Pradhan Mantri Mudra Yojana is a flagship scheme of the government to extend the affordable principle to small and micro-businesses. Loans under this scheme are only given to micro non-farming enterprises involved in money-making. Mudra schemes are designed to bring fundings to the unfunded enterprises. There are three distinct types of Mudra loans depending on the loan amount.

Shishu: Loans up to fifty thousand sanctioned under the Pradhan Mantri Mudra Yojana scheme are put in this category.

Kishore: Loans of amounts up to five lakhs sanctioned under the Pradhan Mantri Mudra Yojana scheme are put in this category.

Tarun: Loans amounting to up to ten lakhs sanctioned under the Pradhan Mantri Mudra Yojana scheme are put in this category.

The loans sanctioned under this scheme have repayment tenure extending up to a maximum of sixty months.

The loans sanctioned under the Pradhan Mantri Mudra Yojana scheme have some salient features making them different from the other loans. The salient features are :

Under this scheme is no limitation at the minimum amount of the loan. However, the maximum one can be up to ten lakhs.

There is no need to pay processing charges or the collateral in case of having availed of a loan.

Under the scheme of Pradhan Mantri Mudra Yojana, the loans are sanctioned to enterprises that are not related to the farming sector. However, this does not exclude those enterprises that are engaged in allied agricultural activities.

Interest Rate of the loans sanctioned by the PMMY: The interest rate on the loans approved under the scheme is determined by the marginal cost of the lending rate. The marginal cost of the lending rate is calculated according to the Reserve Bank of India guidelines.

Eligibility: The eligibility for the loans sanctioned under the scheme of Pradhan Mantri Mudra Yojana is

The enterprise should be a non-farming one.

The enterprise should fall under the category of microenterprise or small enterprises segment.

The enterprise should be involved in income-generating works.

The enterprise should be engaged in works of manufacturing, trading, or services. Recently, enterprises that are allied with farming activities are also included.

The enterprise or the owner asking for a loan should have a credit score of up to ten lakhs.

Bank of Baroda Personal Loan

Bank of Baroda provides personal loans to salaried individuals at rates more attractive than most other banks. These loans can be taken up to meet an individual’s financial endings. The money can be spent in any way as wanted by the individual. With the advantages of credit cards and informal loans, a personal loan can help any salaried or self-employed individual.

Benefits of Bank of Baroda Personal Loan

The benefits provided by the personal loans of the Bank of Baroda are discussed below.

Benefits of Emergency Funds: In such dire situations where the country is facing a deadly pandemic in the name of COVID-19, an emergency fund is always helpful for an individual. Apart from medical emergencies, the emergency fund can also be used by individuals to serve their other financial needs.

Advantage Over Credit Cards: Personal loans also have an advantage over credit cards. Individuals usually can spend money up to a specific limit on credit cards which is not the case for personal loans.

No strict Credit limits: There is no limit in the upper ceiling of the credit in a personal loan.

Repayment Tenure: The repayment tenure of the loan can be extended up to sixty months. Hence, this makes the loan more attractive to the borrowers.

Features of Bank of Baroda Personal Loan

The personal loan of Bank of Baroda has some salient features, which we will discuss below.

The loan can be applied by any individual who is employed in a government or a private firm. To get the loan, the individual has to be working in the same office for more than a year. Similarly, self-employed people will also have to show their business or practice for at least one year.

The age of the applicant may be from twenty-one up to the mark of sixty or sixty-five. The maximum age should be sixty for salaried people, and for non-salaried people, the whole age should be sixty-five at the end of the repayment period.

The principal capital of the loan varies from location to location. In urban and metro cities, the loans granted are from one lakh to fifteen lakhs. On the other hand, the loans granted in semi-urban and semi-metro cities are from fifty thousand to fifteen lakhs.

The processing charges for personal loans are calculated at 2%  with GST on the loan amount.

Documents Required for Bank of Baroda Personal Loan

The documents required for applying for a personal loan are

A filled loan application form with three passport size photographs and a 135 form containing the details of these assets and the liabilities owed by the individual.

The last six months’ bank statements and an updated passbook.

Proof of residency may include a passport, an aadhaar card, post-paid utility bill, voter card, driving license, registered rent agreement.

Proof of identity may also include a passport, an aadhaar card, a voter card, a driving license, and others.

For salaried people, they should have the receipt of the salaries received by them, and for self-employed people, they should provide the balance sheet of profit and loss of their work and their income of the last year.

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