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Explore the many benefits of BoB loans.

  • Eligibility
  • Key Features
  • Charges

Loan To Traders for Working Capital : Eligibility

  •   All business/service concerns having sales turnover upto AED 100 million and undertaking the business of trading in goods and services

  • Security: Assignment/mortgage of the immoveable property, personal guarantee, etc.

Loan To Traders for Working Capital : Key Features

  •  The scheme aims at providing finance for working capital and other long-term purposes against the security of cash margin and/or immovable property

  • A single line of credit for working capital such as Overdraft, Trust Receipts, BP/BD/LCD, short-term demand loans, Letter of Credit, Bank Guarantees, and long-term requirements against the security of certain cash margin and/or immovable property

  • The working capital limit can be extended up to 20% of the projected sales turnover subject to following:

  • In case security is available (subject to maximum AED 3 million)

  • 60% of the value of mortgage/assignment

  • 50% of the value of the possessory pledge

  • In case of collateral security is not available (subject to maximum AED 3 million)

  • 60% cash margin if the establishment is less than 3 years old

    • 50% cash margin if establishment is > 3 years

    • Period: Working capital finance–renewable annually term loans - Up to 7 years

Loan To Traders for Working Capital : Charges

  •   Rate of interest*: Competitive rate of interest prevailing at the time of sanction

  • *Terms: Rates and charges are subject to change from time to time

Frequently Asked Questions (FAQs)

  • What is a Loan to traders for working capital?

    A loan to traders for working capital provides financing for working capital by accepting cash margin and/or immovable property security as collateral.

  • What are the eligibility criteria for a Traders Loan?

    A satisfactory track record and financial assessment based on the Company's business model are necessary to apply for a Traders Loan.

  • How Can I Apply For a Loan to Traders For Working Capital?

    To apply, complete the application form, attach the required documents, and submit them at a Bank of Baroda branch near you.

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