Bank Of Baroda

Types Of Loans

O orking Capital Finance
A Iirm's working capital is the money it has available to meet current obligations (those
due in less than a year) and to acquire earning assets.
Bank oI Baroda oIIers corporations Working Capital Finance to meet their operating
expenses, purchasing inventory, receivables Iinancing, either by direct Iunding or by
issuing letter oI credit.
ey Benefits
W Funded Iacilities, i.e. the bank provides Iunding and assistance to actually purchase
business assets or to meet business expenses.
W Non-Funded Iacilities, i.e. the bank can issue letters oI credit or can give a guarantee
on behalI oI the customer to the suppliers, Government Departments Ior the
procurement oI goods and services on credit.
W Available in both Indian as well as Foreign currency.

O Line of Credit
Bank oI Baroda understands the needs oI its clients. Considering the need oI our clients
Ior operational Ilexibility, Bank oI Baroda has introduced a scheme oI 'Line oI Credit to
enable the clients to switch over between the various working capital Iacilities sanctioned
with relative ease as per their needs compared to the prevalent system oI restricting the
usage oI Iunds within the maximum limits available within a particular Iacility only. This
system will essentially Iacilitate medium/large business units in eIIicient management oI
their borrowing requirements within the sanctioned Line oI Credit Iacility.

Under the Line oI Credit, instead oI considering/ sanctioning separate limits Ior Cash
Credit (Stocks/Book Debts) and DA LC Iacilities, a combined limit Ior Cash Credit
(Stocks & Book Debts)-cum-DA LC limit is sanctioned, with a sub-limit Ior DA-LC
Iacility. The Line oI Credit as a product is innovative and unique in the banking industry.


O port Finance
Bank oI Baroda, being India`s International bank is very active in Export promotion. With the
operating network oI our own branches/oIIices in 25 countries and worldwide correspondent
relationships, our clients enjoy comIorts in transacting international business. Besides the world-
class services, we also provide Export Finance to Exporters at concessive terms to Iacilitate their
competing in the global market.
Our Export Finance is made available at pre shipment and post shipment stage to exporters in
various types oI credit.
Pre-Shipment Finance:
!acking Credit in Rupees.
Running !acking Credit in Rupees.
!acking Credit in Foreign Currency.
Letters oI credit/Guarantees Ior procurement oI materials Ior export.
Post-Shipment Finance:
!urchase oI Export Documents under conIirmed order.
Discounting oI Export documents under L/C or conIirmed order.
Negotiation oI documents under L/C.
!ost shipment demand Loans against Export Bills sent Ior collection.
Export Bills purchase / discounting in Foreign Currency.
Advance against export incentive receivables.

O Bill Finance
In order to ease the pressures on cash Ilow and Iacilitate smooth running oI business, Bank oI
Baroda provides Bill Iinance Iacility to its corporate / non corporate clients. Our bill Iinance
Iacility plugs in the mismatches in the cash Ilow and relieves the corporates Irom worries on
commitments. Besides the Iund based bill Iinance, we also provide agency services Ior collection
oI documentary bills/cheques.
In our Iund based bill Iinance Iacilities, we oIIer post-sale credit against bills as Iollows,
!urchase oI bills drawn under L/C or conIirmed order.
Discounting oI usance bills drawn under L/C or conIirmed order.
Negotiation oI documents under L/C.
!urchase oI cheques.

O Foreign Currency Loan (FCNR`B)
Currencies Ior loan : US $, Euro t, Japanese and Sterling
Who is Eligible: This Iacility would be available to all our existing Corporate / non
corporate clients
!urpose:
1. Working Capital.
2. Loan Ior capital expenditure such as purchase oI new plant and machinery,
acquisition oI equipments and other assets.
3. Repayment oI existing high cost loans.
Tenor: The Iacility can be allowed Ior a period Irom 3 months to 36 months subject to
periodical rollover.
Rate oI Interest: Interest rate would be linked to LIBOR oI relevant currency spread
depending on credit rating, payable at monthly rests.
Commitment Fee: 1 p.a. oI unutilised amount oI FCL iI it is not availed within 30 days
oI sanction.
!repayment charges: 1 on the loan amount Ior the remaining period
!rocessing Charges:
1 Working Capital- Rs. 20,000/-
2 Term Loans- as applicable Ior rupee TL.

O Bridge Loans
Bank oI Baroda has introduced a scheme called Bridge Loan` Ior top rated corporate clients
against expected equity Ilows/issues. Bank can also extend bridge loans against the expected
proceeds oI Non-Convertible Debentures, External Commercial Borrowings, Global Depository
Receipts and/or Iunds in the nature oI Foreign Direct Investments, provided the borrowing
company has already made Iirm arrangements Ior raising the aIoresaid resources/Iunds. This
Iacility would be available Ior a period not exceeding 12 months.






O dvances gainst Shares/IPOs
i) dvances against Shares to Individuals:-
Bank oI Baroda has introduced scheme oI Advances to individuals against shares Ior genuine
individual investors. The maximum amount oI Iinance that can be granted to an individual is to
the extent oI Rs.20 lakh, subject to minimum margin stipulation Irom time to time.
ii) Bank Finance to employees to buy shares of their own companies:-
In view oI a number oI companies oIIering Employee Stock Options (ESO!s) and employee
quota in their I!Os, Bank oI Baroda has introduced scheme to extend Iinance under ESO!/ I!O
to employees to buy shares oI their own companies to the extent oI 12- months salary oI the
employee with a maximum oI Rs. 10 lacs subject to regulatory guidelines on margin, which is
presently as under:-
1. Initial !ublic OIIering (I!O) : 50 margin
2. Employees Stock Option !lan (ESO!) : 10 margin.

O Loan gainst Future Rent Receivables
Loan Against Future Rent Receivables has been developed considering the growth potential in
the real estate in various metros and urban centers, where many commercial properties/shopping
malls are being developed and the owners approach banks Ior loans against securitisation oI
Iuture rent receivables Irom such properties.
ey Benefits
The scope Ior the New !roduct has been kept wide to cover the target groups, viz. owners
oI immoveable properties (lessor) belonging to all types oI the constitution.
The minimum & maximum loan limits are Iixed at Rs. 25.00 lac and Rs. 200 crores
respectively.
The lessees can be oI any category/constitution, except individuals. !roperties involving
lessees, who are reputed corporations/institutions/!SUs/Banks/MNCs, may be preIerred.
Loan under the Scheme can be considered Ior diIIerent purposes, i.e. Ior all lawIul
economic activities as also Ior personal needs oI the lessors. However, the Iacility should
not be extended to any speculative purposes.
The Scheme provides Ior Ilexibility in respect oI entering into Tripartite Agreement
among the Bank, Borrower and the Tenant, by providing an alternative oI obtaining a
suitable letter oI authority and commitment to pay rent direct to the Bank Irom the owner
oI the property and the tenant respectively, at the discretion oI the Sanctioning Authority.
Term Finance

Under Term Finance, Bank oI Baroda, oIIers the Iollowing:
Fund Based Finance Ior capital expenditure / acquisition oI Iixed assets towards
starting / expanding a business or industrial unit or to swap with high cost existing
debt Irom other bank / Iinancial institution.
Non-Fund Based Finance in the Iorm oI DeIerred !ayment Guarantee Ior
acquisition oI Iixed assets towards starting / expanding a business or industrial
unit.

O Short Term Corporate Loan
This loan plan takes care oI the short-term business exigencies and requirements at competent
interest rates.

O Project Finance
Bank oI Baroda provides its customers with the option oI a loan to take care oI the needs oI an
ongoing project, whether it is in Indian or Ioreign currency. This Iacility is available Ior project
Iinance and also Ior project exports.

O Infrastructure Finance
Available in Indian as well as Ioreign currency, this product enables Iunding Ior inIrastructure
projects, such as, !ower Generation, Road Constructions, Construction oI Bridges on the Road /
Railway Lines, Air/ Sea !ort-Development Activities, Telecom, Water Supply System, Urban
Development etc.

O Take Over of ccounts
Bank oI Baroda provides the Iacility to high rated corporate/Non corporate to transIer /take over
their existing borrowal accounts Irom other FIs/Banks, subject to meeting certain criteria. With
this Iacility clients can shiIt their banking transactions to Bank oI Baroda and enjoy the world-
class services oI India`s international bank. The take over oI accounts would be strictly on merits
and under discretion oI the bank.
O Non Fund Based Products & Services
Bank oI Baroda oIIers non Iund based products to its clients as Iollows :-
Letter of Credit : We oIIer import as well as domestic Letter oI Credit Iacility to our
clients Ior procurement oI goods on DA/D! basis as per their needs at very competitive
rates. Considering our international network oI branches / oIIices coupled with
worldwide correspondent relationship arrangements, our clients enjoy market
acceptability and comIort in business deals.
Bank Guarantee : We oIIer Bank Guarantee Iacility to our clients guaranteeing their
perIormance / Iinancial obligations in the domestic as well as international market.
LC dvising / Confirming Services : In case oI Letters oI Credit received by our
clients, we oIIer LC advising as well as LC conIirmation services under our
correspondent relationships with domestic as well as international banks.
Co-acceptance facilities : Sometimes in business deals on credit basis, buyers are
required to oIIer adequate comIorts to the sellers such as bank guarantee or co-acceptance
oI bills by the bankers. Bank oI Baroda oIIers co-acceptance oI bills Iacility to the top
rated clients.
Bancassurance : Bank oI Baroda has tie-up arrangement with National Insurance
Company (NIC), under which we arrange Ior issuance oI general insurance policies to
our clients thereby taking away their worries oI timely and adequate insurance cover oI
the assets.
Solvency Certificate : We provide Solvency CertiIicate to our clients in case it is
required Ior providing to Government authorities, other corporates in business deals /
bids etc.
Credit Reports : We provide Credit Reports on our clients to other banks/FIs and we
also obtain Credit inIormation required by our clients on their counter parties, through
our correspondent relationship.