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Baroda Overdraft Against Land and Building

Baroda Overdraft against land and building is a unique product for financing working capital requirements/long term margin requirements of SME borrowers against the security of unencumbered land and building belonging to the unit or Promoters of the unit, or, close relatives of the promoters.


  • To provide hassle free credit to SME borrowers to meet working capital requirements/augment long term margin requirements.


  • All Enterprises, i.e. Micro, Small & Medium Enterprises, as defined under MSMED Act, 2006, and other entities with annual sales turnover up to Rs. 150/- crores and Real Estate/Non Real Estate projects where the project cost is Rs.50.00 Crores exclusively banking with our bank/new borrowers desirous of having sole banking arrangement with our bank. .


  • Minimum :Rs. 10.00 lacs (for Rural/Semi-Urban/Urban/Metro branches)
  • Maximum: Rs. 75.00 lacs (for Rural branches)
                        Rs. 200.00 lacs (for Semi-urban branches)
                        Rs. 500.00 lacs (for Urban & Metro branches)


  1. Mortgage of factory land and building and/or any other property (Land & Building) belonging to the unit, promoters of the unit, or close relatives of the promoters, (viz. father, mother, wife, son and daughter only provided they stand as guarantors).
  2. Note : In case of residential/commercial building, age of property should not be more than 25 years at the time of sanction).

  3. Personal guarantees of all Promoter Directors/owners of property.
  4. Third party guarantee, if available.
  5. Charge on unencumbered personal properties of the Promoter Directors, if available.
  6. Hypothecation of stocks/book debts.


  • 40% of the market value of property mortgaged (valuation of the property will be carried out by the valuer on bank�s approved panel/Government approved valuer)


    Micro Enterprises in Manufacturing & Service Sector (As per Regulatory definition)

    Base rate + 2% p.a. at present

    Small Enterprises in Manufacturing & Service Sector (As per Regulatory definition)

    Base Rate+2.25% p.a. at present

    Medium Enterprises in Manufacturing & Service Sector (As per Regulatory definition)

    Base Rate +2.75% p.a. at present

    For other Enterprises, i.e. with annual sales turnover up to Rs.150/- crores.

    Base Rate +3.25% p.a. at present

    Term Premium for Term Loan as per guidelines

    PERIOD :

    12 months.


    • Simplified assessment methods.
    • Submission of stock/book debts statements on half yearly basis.
    • Annual inspection of securities.
    • Non-fund based facilities like LCs, Guarantees, allowed by earmarking Overdraft facility.
    • Valuation of properties once in 3 years.

      Conditions apply.

    To know the current interest rates Click here.

    Click here to download copies of blank agreements to be executed by the borrowers

    > Working Capital Finance > Term Finance > MSME > SME > Small Business Borrowers > Traders Loan

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