Below is a list of loans by Bank of Baroda Kenya, how to apply for the loans and interest rates:
Personal Banking loans
Baroda Personal Loans
Baroda Personal Loans : Key Features
- Attractive Rate of Interest
- No processing charges
- No hidden charges
- Easy application process
- Hassle free and swift sanction, convenient documentation
| Limit | Maximum of Kshs. 1.50 Mns |
| Period | Maximum 36 Months |
Baroda Personal Loans : Eligibility
- Individuals: Salaried Persons, Businessmen, Professionals like Doctors, Engineers, Chartered accountants. Directors / Promoters of the corporates availing credit facilities with our Bank. Professionals availing any other credit facilities with us.
Baroda Mortgage Loan
Baroda Mortgage Loan : Eligibility
- Age of the Borrower
Minimum-21- years
Maximum- present age plus repayment period should not exceed -70- years of age or retirement age (salaried person), whichever is earlier. - Base Rate+ Applicable Risk Premium.
- Salaried persons, Businessmen, Professionals, Farmers, Directors of Private/Public Ltd. Companies can avail the facility (Real Estate developers, Property Dealers/ Brokers, Share/ Stock Brokers are not eligible for this facility).
- Spouse of borrower/s, Blood relatives and their spouse can be included as co-borrower for higher eligible limit.
- Minimum three years tax returns to be submitted.
- Staff members are not eligible
Baroda Mortgage Loan : Margin
- 35% of the Forced Sale Value of the immovable property to be mortgaged with the bank.
Baroda Mortgage Loan : Loan Amount
Minimum Kshs. 1,000,000/-& maximum Kshs. 100,000,000 (Also in available USD)subject to following income criteria;
- For salaried person/s :- 36- times of gross monthly income.
- Others: -5- times of gross annual income (average of last -2- years).
- (Total deductions including the proposed EMI/ notional installment should not exceed 60% of the gross monthly income).
Baroda Mortgage Loan : Repayment
- Term Loan: By -120-Equated Monthly Installments (EMIs).
- Overdrafts: -12- months subject to annual review.
Baroda Mortgage Loan : Others
- Comprehensive Insurance of the Property to be done.
- Credit Life coverage of the Individual borrower under Group Credit Life Mortgage Protection shall be obtained
- Legal charges on the property.
- Third party costs viz: Valuation fees, Legal costs & property Insurance costs etc. are to be borne by the borrower
Baroda Car Loan
Baroda Car Loan : Key Features
- Finance available for purchase of new or reconditioned car
- Loan processing fee is refundable and no hidden charges
- Easy application process
- Hassle free and swift sanction, convenient documentation
- Convenient repayment period
- Base Rate+ Applicable Risk Premium.
- Reimbursement for imported cars (upon verification of import documents and payment routed through banking channel).
Baroda Car Loan : Eligibility
- Regular income
- Valid identification proof
- Minimum age of 21 years
- Proof of Income
Baroda Home Loans
Baroda Home Loans : Benefits
- Loan processing fee will be refunded on availment.
- No facility renewal fee, No minimum income requirements, penalty for early repayment.
- Joint borrowing with close family members is allowed.
- Base Rate+ Applicable Risk Premium.
- Protection of credit life insurance, which can also be financed
Baroda Home Loans : Key Features
- Maximum loan amount of Kes. 100 million or USD 1 Million.
- Maximum loan tenor is 20 years
- Embedded credit life protection insurance in the loan repayments
- Simple one step application form and process for applying and hassle free approval.
- Base Rate+ Applicable Risk Premium.
Baroda Home Loans : Eligibility
Here are some basic requirements you need to fulfill:
- Regular income
- Minimum age of 21 years
- Valid identification
Baroda Home Loans : Terms & Conditions
Other third party cost:
- Valuation fees.
- Legal Costs.
- Property insurance cost.
Baroda Education Loan
Baroda Education Loan : Eligibility
- With the purpose of assisting parents and students meet educational expenses of student for study in Kenya or abroad, Bank of Baroda (Kenya) Ltd offers Baroda Education Loan. Our endeavour is to identify meritorious students who have both will and potential to learn and achieve heights in future and support those deserving students who are in need of finance.
- Education is the foundation on which strong and robust countries are built and we aim to promote this.
Baroda Education Loan : Features
- For students requiring education loans
- 80% of education expenses covered
- Max Limit: Up to Kes. 10.00Mn
- Repayment: Up to 10 years
Baroda Traders Loan
Baroda Traders Loan : Eligibility
- Baroda Traders Loan (BTL) is one of the key products of retail loan basket available against the security of immovable property/ies, which caters to the financial needs of business entities in trading of permissible goods.
- The objective of Baroda Traders Loan is to provide a simple hassle-free and security linked advance, where neither the drawing power is determined by value of stock nor traders are required to submit various financial statements on monthly basis.
Baroda Traders Loan : Features
- Term Loan/Overdraft
- Non-fund based facility also available
- For trade of commodities/goods
- Max Limit: Kes. 50.00Mn
- Repayment: Upto 5 years
- Easy takeover of loans from other banks
Baroda Loan Against Future Rent Receivables
Baroda Loan Against Future Rent Receivables : Key Features
- Considering the Growth potential available in real estate sector and to facilitate leveraging the potential return / income at urban areas, where many commercial properties / shopping complexes are being developed, Bank of Baroda (Kenya) Ltd. has designed a unique loan product for owners of such commercial properties against their future rent receivables.
Baroda Loan Against Future Rent Receivables : Loan Amount
75% of rent (net of tax, advance rent, security deposit etc), due and receivable for the unexpired certain period of lease and uncertain period of lease (optional period subject to:
- Minimum Kshs. 1,000,000/-& maximum up to Kshs.200,000,000/-(available in USD also)
- Base Rate+ Applicable Risk Premium.
Baroda Loan Against Future Rent Receivables : Repayment
- By Equated Monthly Installments (EMIs).
- Up to 10 years or unexpired certain lease period and uncertain period of lease (optional period of maximum next 10 years) whichever is less.
- The maximum rental period (including the certain and optional period) should be10 years.
Baroda Loan Against Future Rent Receivables : Terms & Conditions
- Facility against Assignment of Future Rent Receivables.
- Mortgage of the leased property.
- Tripartite Agreement amongst the Bank, the Borrower and the Lessee.
- Account for collection of lease rental to be opened with us.
- Third party costs viz: Valuation fees, Legal costs & property Insurance costs etc. are to be borne by the borrower.
Baroda Additional Assured Advance
Baroda Additional Assured Advance : Eligibility
- All existing housing loan customers of the bank.
- Age of borrower plus tenure of the B-AAA should not exceed 70 years
- A margin of 25% of residual Value of Housing propertyafter deducting 150% of outstanding loan amount of existing Home Loan account.
Baroda Additional Assured Advance : Loan Amount
Minimum Kshs. 1,000,000/- & maximum Kshs.25,000,000 maximum amount is restricted to 80% of the principal amount repaid.
- Base Rate+ Applicable Risk Premium.
Baroda Additional Assured Advance : Repayment
- By Equated Monthly Installments (EMIs).
- Up to maximum -84- EMIs (should not exceed the maturity date of the existing home Loan account
Baroda Additional Assured Advance : Terms & Conditions
- The B-AAA facility is also available for the Home Loan accounts transferred from other financial institutions.
- For security, the extension of existing legal charge of the house already created is required.
- This facility can be availed as many as 3 times during the entire tenure of home Loan, subject to full settlement of previous B-AAA.
- Third party viz: Valuation fees, legal costs & property Insurance cost etc. are to be borne by the borrower.
Baroda Home Improvement Loan
Baroda Home Improvement Loan : Key Features
- For repair / renovation / improvement/ extension of existing house
- Purchase of furniture / fixture / other gadgets such as fans, geysers, air conditioners, water filters, air purifiers, heaters, desert coolers etc.
Baroda Home Improvement Loan : Eligibility
- All existing housing loan customers of the bank.
- Age of borrower plus tenure of the BHIL should not exceed 70 years of age or retirement age (in case of salaried person), whichever is earlier.
- A margin of 25% of project cost (estimated cost of repairing/ renovation/ cost of furniture/ fixture etc)
Baroda Home Improvement Loan : Loan Amount
- Minimum Kshs.500,000/- & maximum up to Kshs.10,000,000/-(Available in USD also)
- (With the provision that loan component for furniture/ fixtures/ other gadgets should not exceed Kshs. 3,000,000/-).
- Base Rate+ Applicable Risk Premium.
Baroda Home Improvement Loan : Repayment
- By Equated Monthly Installments (EMIs).Up to maximum – 72- EMIs.(For furniture and Fixture)
- By Equated Monthly Installments (EMIs).Up to maximum – 120- EMIs.(For New improvement and renovations)
(Should not exceed the maturity date of the existing Home Loan account).
Baroda Home Improvement Loan : Terms & Conditions
- The BHIL facility is also available for the Home Loan accounts transferred from other Financial institutions.
- For security, the extension of existing legal charge of the house already created, is required.
- This facility can be availed as many as -3- times during the entire tenure of Home Loan, subject to full settlement of previous BHIL.
- Third party costs viz: Valuation fees, Legal costs &property Insurance costs etc. are to be borne by the borrower.
Corporate Banking Loans
Loan Against Future Rent Receivables
Loan Against Future Rent Receivables : Key Features
Considering the Growth potential available in real estate sector and to facilitate leveraging the potential return / income at urban areas, where many commercial properties / shopping complexes are being developed, Bank of Baroda (Kenya) Ltd. has designed a unique loan product for owners of such commercial properties against their future rent receivables.
Loan Against Future Rent Receivables : Loan Amount
75% of rent (net of tax, advance rent, security deposit etc), due and receivable for the unexpired certain period of lease and uncertain period of lease (optional period subject to:
- Minimum Kshs. 1,000,000/-& maximum up to Kshs.200,000,000/-(available in USD also)
- Base Rate+ Applicable Risk Premium.
Loan Against Future Rent Receivables : Repayment
- By Equated Monthly Installments (EMIs).
- Up to 10 years or unexpired certain lease period and uncertain period of lease (optional period of maximum next 10 years) whichever is less.
- The maximum rental period (including the certain and optional period) should be10 years.
Loan Against Future Rent Receivables : Terms & Conditions
- Facility against Assignment of Future Rent Receivables.
- Mortgage of the leased property.
- Tripartite Agreement amongst the Bank, the Borrower and the Lessee.
- Account for collection of lease rental to be opened with us.
- Third party costs viz: Valuation fees, Legal costs & property Insurance costs etc. are to be borne by the borrower.
Corporate/SME Loans
Corporate/SME Loans : Benefits
- Simple applications process
- Quick approvals
- Attractive Rate of Interest
- Zero processing Charges
- Easy terms
Corporate/SME Loans : Key Features
Borrower:
Borrower may be Sole Proprietorship, Partnership, Limited Liability Company, or any other type of constituent permissible under the law, subject to compliance of the relevant formalities and on fulfilment of the Bank’s eligibility criteria and other loan specific terms and conditions.
Sectors:
Export Finance, Manufacturing, Trade, Building & Construction, Tourism, Hotels & Restaurants, Agriculture, Energy, Telecommunications, Service sector etc.
Type of Facility:
The Bank meets the borrower’s financial requirements through Fund-Based (FB) or by way of Non-Fund Based (NFB) facilities. Fund Based credit facilities are extended by way of Overdraft, Demand Loan, Term Loan, Import Finance Pre-shipment, Post-shipment and Bills Purchase/Discounting facilities etc. Non-Funded facilities are extended by way of Letter of Credit, Guarantees, Co- Acceptance (Bill Avalisation) etc.
Corporate/SME Loans : Terms & Conditions
Other information:
Lending to borrowers is secured or unsecured. ‘Security’ means tangible security charged to the Bank and will not include intangible securities like guarantees, comfort letters etc. However, lending against Bank Guarantee, Stand by Letter of Credit, Letter of Comfort of Prime Banks.
The Charge on the Security offered, depending on the nature of security, is created by way of Pledge, Debenture Charge, Legal Charge, Assignment etc, subject to registration with competent authorities wherever mandatory under the law.
Bank finances under Multiple Banking Arrangement (MBA) subject to the strict compliance of the laid down conditions and norms in view of the inherent risks involved. Under MBA Bank can enter into agreement on risk / security sharing basis with other Bank / Financial Institution willing to enter into such Agreement.
Bank can also finance under a Consortium arrangement whereby one Bank acts as a leader for the purpose of assessment of limits, documentation, creation of charge etc., on mutually acceptable terms and conditions.
Lending is a continuous activity in the Bank with due focus on identification, measurement, monitoring & control of credit risk.
Asset Financing
Asset Financing : Key Features
- Simplified loan processing
- No prepayment charge.
- No documentation charges
Asset Financing : Eligibility
- Individual proprietorship & partnership firms, private limited companies and registered society engaged in trading / manufacturing business.
Asset Financing : Product
- Hassle free loan for purchasing of new vehicle for road transport.
Asset Financing : Loan Amount
- Maximum Kshs.5million (per vehicle)
- Margin: 20% (minimum)
Asset Financing : Period
-
- Maximum: 60 monthly installment + interest as applicable commencing from next month after disbursement.
Insurance Premium Finance (IPF)
Insurance Premium Finance (IPF) : Key Features
The following are the features of the Insurance Premium Finance Product:
| 1. | Eligibility | Individuals, limited companies, engaged in manufacturing / trading and other activities not prohibited by law.
In case of Traders, the business should have been established preferably for more than –1- year. |
| 2. | Purpose | For payment of premium to insurance companies on behalf of borrowers for covering insurance of machineries and other assets or other insurance covers.
The insurance companies (life and non-life) must be bank approved as well as IRA approved insurance companies. The Bank considers top 10 insurance companies as rated IRA. The list will be provided on quarterly basis. Insurance company not in the top 10 list may be considered by the Managing Director on case-to-case basis. |
| 3. | Limit | 100% of annual insurance premium payable |
| 4. | Rate of interest | Flat Rate on principal as per Schedule attached |
| 5. | Method of Calculation of Interest | At the Flat Rate on Principal. |
| 6. | Repayment |
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| 7. | Security/ Documents |
|
Insurance Premium Finance (IPF) : Terms & Conditions
- –10- cheques of which one current cheque for upfront installment and -9- postdated cheques are to be obtained for the number of monthly installments at the beginning
- First cheque is to be collected upfront before disbursement of the loan.
- Entire amount of loan is to be disbursed after the first cheque is collected and deposited and cleared in the loan account.
- The loan is to be disbursed and the proceeds are to be remitted to the Insurance Company directly and communicated by means of a forwarding letter detailing the terms of sanction / repayment / agreement.
- Interest is to be charged in the account at the flat rate on the principal amount of loan sanctioned for the period for which the loan is sanctioned.
- IPF installment cheques to be invariably deposited on the due date.
- Monitor all cheques and confirm that they are cleared as a daily exercise
- In case any of the cheques bounce back due to insufficient fund in the account following steps are to be immediately taken;
- The matter is to be immediately referred to the borrower and the Insurance Company and the contract of insurance automatically gets cancelled with immediate effect.
- The Insurance Company is to be advised to refund the amount of unutilized insurance premium for the unexpired period of insurance and cancellation of the contract.
Insurance Premium Finance (IPF) : Calculation
In this case, the amount refund is to be calculated as per following formula:
AIP x UPIC (no of days)
Refund= —————————————-
365
Where;
AIP= Annual Insurance Premium
UPIC= Unexpired period of the Insurance Cover (No. of days)
- After the refund is received from the Insurance Company the loan account is to be closed after adjustment of the refund money into the loan account.
- Normally there should be no outstanding after adjustment of the refund money from the Insurance Company. But in case there is any outstanding balance then follow up is to be made with borrower to get the account adjusted immediately.
Baroda Biashara Loans
Baroda Biashara Loans : Purpose
Facility Overdraft or Loan
Working capital requirements · Development of shop (e.g. purchase of equipment, PC, air conditioner, furniture etc and not for purchase of shop), for need based requirements · Non-fund based facilities (i.e. Bank Guarantee and Letter of Credit).
Baroda Biashara Loans : Eligibility
- Individuals, Proprietorship & Partnership Firms, Private Ltd, Companies and Registered Societies engaged in trade of any commodity/goods required by the community and trading in them is not prohibited by law or opposed to public interest (manufacturing unit excluded).
- The business units should have been established in the line of business for a minimum period of 2 yrs.
- Trading units established by our existing customers with satisfactory dealings or their close relatives, even if these are established for less than 2 yrs.
- Trading units of non-customers having less than two years establishment; with the prior approval of Head Office.
- Limit Minimum:
- Ksh.1.00 million Maximum: Ksh 30.00 million Assessment of working capital limit: The credit limit is to be considered as under: 20% of the projected sales subject to verification of actual sales of previous years/quarters from VAT return. OR Assessment of loan for shop development Need based finance to be considered as per requirements subject to a maximum of 75% of the investment proposed in the fixed assets. However, working capital advance & shop development loan together should not exceed Advance Value of collateral security or Ksh 30.00 million whichever is less.
- Margin
- 50% on market value as per recent valuation report of immovable property.
- 10% on Bank’s own FDRs · 20% on Fixed Deposit with Bank of Baroda.
- 10% on Government Bonds etc.
- Period 12 months subject to annual review
- Repayment Loan – Maximum 60 months including moratorium (depending on repayment capacity)
Baroda Biashara Loans : Security
- Tangible collateral securities in the form of Legal charge of land (not agricultural land) and building
- Property to be under legal charge may be ONLY in the name of either borrower, Proprietor, Partner, Director or the close relatives.
- Property standing in the name of third party can also be accepted, provided: Owner of property offers personal guarantee.
- Undeveloped property, like plot of land should not be taken as security. Valuation: Branch to obtain a valuation report on the property to be under legal charge from Bank’s approved valuer. Further the valuation is to be done once in three years. Valuation fees are to be borne by the applicant/borrower.
- Government Bonds, Bank’s Term Deposits, standing in the name of the proprietor, partner, director, or guarantor (shares are not to be accepted as a security).
