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Key Features of Bank of Baroda Overdraft (OD) Facilities

  • Purpose: To provide quick access to funds for short-term needs without liquidating fixed deposits or other securities.
  • Types of OD Facilities:
    • OD Against Bank’s Own Deposit (ODBOD): Available through the bob World app. Borrow against fixed deposits with up to 90% of the FD value. Interest rate: Typically 1–2% above the FD rate. Tenure: Renewable annually or aligned with FD maturity.
    • Loan Against Bank’s Own Deposit (LABOD): Similar to ODBOD but structured as a loan with fixed repayment terms. Ideal for larger funding needs against FDs.
    • Baroda Traders Loan (BTL): OD against immovable property for business entities in trading. Caters to working capital or personal needs of traders.
    • Salary-Linked OD: For salaried individuals, especially in UAE branches. Limit: Up to 24 months of salary (₹5 lakh without guarantor, ₹10 lakh with guarantor in Mauritius).
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    • Eligibility: Available to individuals (including NRIs) and businesses with qualifying assets such as RD, FD, SGB, shares, or salary accounts.
    • Minimum Requirements: Varies by product - ODBOD requires an active FD; Salary OD requires regular salary credits.
    • No Collateral Required for Salary OD: Salary Overdraft is unsecured, while other ODs are secured by assets like RD, FD, SGB, or shares.
    • Credit Score Importance: More critical for unsecured Salary OD; secured ODs have relaxed credit requirements.
    • Pre-approved Offers: Existing Bank of Baroda customers may receive pre-approved OD offers with minimal documentation.
    • Flexible Repayment: No fixed EMIs - repay as per your cash flow convenience, offering more flexibility.
    • Interest Rates: Typically lower than credit cards but may be higher than standard personal loans, charged only on utilized amount.
    • Limit Determination: The OD limit is set based on asset value (up to 90% for FD/RD/SGB, 50-60% for shares) or salary (2-3x monthly salary for Salary OD).
    • Digital Management: Monitor and manage your OD facility through Bank of Baroda’s mobile app or online banking.
    • Renewal: The OD facility typically needs to be renewed annually, subject to review of your financial profile and asset value.
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Benefits of Bank of Baroda Overdraft (OD) Facilities

  • Flexible Access to Funds: OD allows borrowers to withdraw funds as needed up to the sanctioned limit, making it ideal for short-term or recurring expenses. Repay at your convenience within the limit, unlike fixed EMIs in personal loans.
  • Low Interest Rates:
    • OD Against Fixed Deposits (ODBOD/LABOD): Interest rates are 1-2% above the FD rate, significantly lower than personal loan rates.
    • Salary-Linked OD: Starts at 11.40% p.a. (varies by region, e.g., UAE, Mauritius).
    • Traders Loan OD: Competitive rates based on property valuation.
    • Flexible Access to Funds: OD allows borrowers to withdraw funds as needed up to the sanctioned limit, making it ideal for short-term expenses. Repay at your convenience within the limit, unlike fixed EMIs in personal loans.
    • Low Interest Rates: OD Against Fixed Deposits (ODBOD/LABOD): Interest rates are 1-2% above the FD rate, significantly lower than personal loan rates.
    • Interest on Utilized Amount Only: Interest is charged only on the amount withdrawn, not the entire OD limit, making it cost-effective compared to term loans.
    • Preserves Fixed Deposits: OD against FDs allows you to borrow up to 90% of the FD value without breaking the deposit, ensuring continued interest earnings Ideal for maintaining long-term savings.
    • Quick Activation: Apply online via the bob World app for OD against FDs with instant activation. Minimal documentation (FD certificate or account details) speeds up the process.
    • Against FDs: Up to 90% of FD value, potentially in lakhs depending on the deposit.
    • Salary-linked OD: Up to 24 months of salary (e.g., ₹5 lakh without guarantor, ₹10 lakh with guarantor in Mauritius).
    • Traders OD: Based on property valuation, suitable for business needs.
    • Flexible Tenure and Renewal:
    • Standard OD: 12 months, renewable annually with a 15% step-down in limit.
    • Term loan OD: Up to 7 years.
    • FD-linked OD: Aligned with FD maturity, renewable as needed.
    • Minimal or No Processing Fees:
    • OD against FDs: Often nil or minimal fees.
    • Salary-linked or traders OD: 1-2% of the limit, similar to personal loans but lower than market standards.
    • Tailored for Specific Needs:
    • OD Against FDs: For individuals needing liquidity without liquidating savings.
    • Traders Loan OD: For businesses requiring working capital or inventory funding.
    • Salary-Linked OD: For salaried employees, especially in regions like UAE or Mauritius.
    • No Prepayment Penalties: Repay the utilized OD amount at any time without penalties, offering flexibility to manage finances.
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Applying for Bank of Baroda Overdraft (OD) Facilities

  • Required Documents
    • OD Against FDs: FD certificate or account details, identity proof (PAN/Aadhaar), address proof (Aadhaar/utility bill).
    • Salary-Linked OD: Last 3 months’ salary slips, Form 16, or bank statements; identity and address proofs; employment proof (e.g., appointment letter).
    • Traders Loan OD: Property documents (title deed, valuation report), business proof (GST certificate, registration), ITR for the last 2 years, identity and address proofs.
    • Additional: Passport-size photographs; BoB account details.
  • Application Process
    • 1. Online Application (OD Against FDs)
      • The bob World app offers a seamless process for OD against fixed deposits (ODBOD).
      • Steps:
        • Download the app or use the BoB website’s internet banking portal.
        • Log in with your BoB account credentials.
        • Go to the “Borrow” or “Loans” tab and select “OD Against Fixed Deposit.”
        • Choose the FD you wish to link (up to 90% of FD value can be availed as OD).
        • Specify the OD limit required (within permissible limits).
        • Upload FD certificate (if not linked digitally) and identity/address proofs.
        • Complete e-signing for the OD agreement using Aadhaar or digital signature.
        • OD account is activated instantly or within hours.
        • Monitor OD usage and interest via the bob World app or internet banking.
      • Tips:
        • Check the app for pre-approved OD offers for faster activation.
    • 2. Offline Application
      • Visit a BoB branch for OD against FDs, salary-linked OD, or traders OD.
      • Steps:
        • Locate the nearest branch using the BoB website’s branch locator.
        • Obtain the relevant form (e.g., ODBOD, traders loan, or salary OD).
        • Provide personal, account, and OD details (limit, purpose, security).
        • Attach self-attested copies of required documents.
        • Provide originals for verification, if requested.
        • Bank verifies FD status, property valuation, or income stability.
        • Receive a sanction letter with OD limit, interest rate, and tenure.
        • Sign the OD agreement at the branch.
        • OD account is activated within 2-7 working days.
        • Funds are accessible via the linked account.

Eligibility Criteria for Overdraft (OD) Facilities

  • General Eligibility
    • Age: Minimum: 21 years; Maximum: 65–70 years depending on OD type and region.
    • Nationality: Resident Indians. Specific schemes available for residents in UAE, Mauritius, etc.
    • Credit Score: Not mandatory for FD OD; preferred for salary/traders OD (750+ for better terms).
    • Bank Relationship: Active BoB account preferred. FD OD applicants must be FD holders or joint holders.
  • OD Against Fixed Deposits (ODBOD/LABOD)
    • Available to all BoB customers with active FDs (individuals, HUFs, firms, trusts).
    • No income or credit score requirement; FD acts as collateral.
    • OD limit: Up to 90% of FD value (principal + interest).
    • FD must be free from lien and held in the applicant's name or jointly.
  • Salary-Linked OD
    • For salaried individuals with BoB salary accounts, including in UAE/Mauritius.
    • Minimum 1 year of employment with current employer.
    • Higher limits for government/PSU employees (e.g., up to ₹10 lakh with guarantor in Mauritius).
    • Stable salary credited to BoB account monthly; minimum ₹25,000–₹30,000 depending on region.
    • OD limit: Up to 24 months of salary. CIBIL 750+ preferred.
  • Baroda Traders Loan (BTL) OD
    • For business owners/traders with at least 1 year of operations.
    • Must own commercial/residential property (free from encumbrance).
    • Stable income as per ITR and CA-certified financials for the last 2 years.
    • OD limit based on property value (50–60% of market valuation).
    • CIBIL 750+ preferred but not mandatory with strong collateral.
  • Regional Variations
    • Mauritius: Salary OD for government/private employees with BoB salary accounts. Limits up to ₹10 lakh with guarantor.
    • UAE: Salary OD for expatriates with 1 year of service. Limit based on salary (up to 24 months).
    • Kenya: Traders OD with property security. Similar eligibility to India for professionals/salaried individuals.
  • Other Requirements
    • Documentation: Varies by OD type—includes FD proof, salary slips, property documents, and KYC.
    • Co-Applicants: Not required for FD OD; applicable only for joint holders.
    • Guarantor: Required only for higher salary-linked OD limits in select regions (e.g., Mauritius).
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Documents Required for Overdraft (OD) Facilities - Bank of Baroda

  • General Documents (Applicable to All OD Types):
    Identity Proof (any one):
    - PAN Card (mandatory), Aadhaar Card, Voter ID
    - Passport
    - Driving License
    Address Proof (any one):
    - Aadhaar Card
    - Utility Bill (not older than 3 months)
    - Rent Agreement
    - Passport
    - Voter ID
    Other Documents:
    - 2-3 recent passport-size photographs
    - BoB account passbook or statement
    - Cancelled cheque (if required)
    - OD application form (offline/online via bob World app)
  • OD Against Fixed Deposits (ODBOD/LABOD):
    - Fixed Deposit certificate or receipt
    - FD account statement or passbook entry
    - Declaration of FD ownership (for joint FDs)
    - No income proof or credit score required
    - FD must be active, not under lien, and in applicant’s/joint name
  • Baroda Traders Loan (BTL) OD:
    Property Documents:
    - Title deed
    - Property valuation report (BoB-approved valuer)
    - Encumbrance certificate
    - Approved building plan or completion certificate (if applicable)
    Business Proof:
    - Business registration, GST certificate, shop license
    - Partnership deed or incorporation certificate (if applicable)
    Income Proof:
    - ITR for last 2 years with computation
    - CA-certified balance sheet and P&L statement
    - Business bank statements (last 6 months)
    Other:
    - Property tax/utility bills
    - Proof of business continuity for 1+ year

Factors Affecting Bank of Baroda (BoB) Overdraft (OD) Facility

  • Security/Collateral:
    - FD OD: OD limit up to 90% of FD value; FD must be active and not under lien.
    - Traders OD: Based on property value (50-60% of market value); property must be unencumbered.
    - Salary-Linked OD: No collateral; limit based on salary (up to 24 months).
  • Income and Employment Stability:
    - Salary OD: Minimum 1 year of service with salary credited to BoB.
    - Traders OD: At least 1 year of stable business and verifiable income.
    - FD OD: No income proof required.
  • Credit Score:
    - Salary/Traders OD: CIBIL score of 750+ preferred for approval and better rates.
    - FD OD: Credit score not required as FD secures repayment.
  • Bank Relationship:
    - 6+ months of active BoB account enhances chances.
    - FD holders or salary customers get instant OD facilities and better terms.
  • Interest Rate:
    - FD OD: Typically 1–2% above FD rate.
    - Salary OD: Starts at 11.40% p.a. (may vary).
    - Traders OD: Around 10–13% depending on profile and collateral.
  • OD Limit and Tenure:
    - FD OD: Up to 90% of FD; tenure matches FD maturity.
    - Salary OD: Limit up to 24x salary; tenure 12 months or 7 years.
    - Traders OD: Based on property value; tenure of up to 7 years with step-downs.
  • Documentation:
    - FD OD: Requires FD certificate and ID/address proof.
    - Salary OD: Salary slips, ID/address proof, employment proof.
    - Traders OD: Property deed, valuation, business proof, ITRs.
  • Age of Applicant:
    - Minimum age: 21 years; Maximum: 65-70 at maturity.
    - Younger applicants may be eligible for longer tenures.
  • Location and Regional Policies:
    - India: Metro/urban areas may offer higher limits.
    - International (Mauritius, UAE, Kenya): OD features adapted to local conditions, income levels, and regulations.

Frequently Asked Questions (FAQs)

What types of OD facilities does Bank of Baroda (BoB) offer?
  • OD Against Fixed Deposits (ODBOD/LABOD): Up to 90% of the FD value.
  • Salary-Linked OD: Up to 24 months’ salary (e.g., ₹5 lakh without guarantor in Mauritius).
  • Baroda Traders Loan (BTL) OD: Against immovable property for businesses.
Who is eligible for a BoB OD facility?
  • FD OD: BoB customers with active fixed deposits (individuals, HUFs, firms, trusts). No income or credit score requirement.
  • Salary-Linked OD: Salaried employees with BoB salary accounts (1 year of service) and a stable income (₹25,000-₹30,000/month in UAE).
  • Traders OD: Traders/business owners with 1 year of stable business and ownership of immovable property.
  • Age: 21 to 65–70 years depending on the OD type.
  • Credit Score: Preferred (750+) for salary/traders OD; not required for FD OD.
What is the OD limit and tenure?
  • FD OD: Up to 90% of the FD value; tenure aligns with FD maturity (renewable).
  • Salary-Linked OD: Up to 24 months’ salary; 12 months (renewable) or up to 7 years if structured as a term loan OD.
  • Traders OD: Based on property value; 12 months (renewable with a 15% step-down) or up to 7 years.
What are the interest rates for OD facilities?
  • FD OD: 1–2% above the FD interest rate (e.g., 7% FD = 8–9% OD).
  • Salary-Linked OD: Starts at 11.40% p.a. (varies by location, e.g., UAE, Mauritius).
  • Traders OD: Ranges from 10–13% p.a. based on credit profile and property valuation.
  • Interest is charged only on the amount utilized, not the entire limit.
What documents are required for an OD facility?
  • FD OD: FD certificate, PAN/Aadhaar, address proof, photographs.
  • Salary-Linked OD: Salary slips (3 months), Form 16, bank statements (6 months), employment proof, KYC documents.
  • Traders OD: Property documents (title deed, valuation), ITRs (2 years), GST certificate, bank statements, ID/address proofs.
  • Note: Existing BoB customers may need minimal documentation for FD OD.
How can I apply for an OD facility?
  • Online (FD OD): Use the bob World app, select FD, enter the OD limit, upload documents, and e-sign for instant activation.
  • Offline: Visit a BoB branch, submit the OD application form and documents, and sign the agreement. Approval in 2–7 days.
  • International (e.g., UAE, Mauritius): Apply via local BoB branches or regional online portals (if available).
Are there any processing fees for OD?
  • FD OD: Usually nil or minimal.
  • Salary/Traders OD: Typically 1–2% of the sanctioned limit plus GST.
  • Fees may be waived for long-standing or high-value customers.
Can I repay the OD amount early?
Yes, BoB allows early repayment without any prepayment penalties. You only pay interest on the amount utilized, so early repayment reduces overall interest cost.
What is the advantage of OD over a personal loan?
  • Flexibility: Withdraw funds as needed within the limit and repay anytime.
  • Lower Cost: Interest charged only on the amount used (e.g., FD OD at 8–9% vs. 10.55%+ for personal loans).
  • Savings Protection: FD OD lets you access liquidity without breaking your FD.
What happens if I default on OD repayments?
  • A 2% p.a. penal interest is applied on overdue amounts or non-compliance with terms (e.g., incomplete security).
  • Defaults negatively affect your credit score and future OD eligibility.
Can I get an OD without a BoB account?
No, a BoB account is mandatory. FD OD requires an active BoB FD, and salary OD requires salary credits into a BoB salary account. Traders OD also requires active banking with BoB.
How is the OD limit renewed?
  • FD OD: Automatically renewed based on FD maturity or continuation.
  • Salary/Traders OD: Subject to annual renewal with a 15% step-down in limit, based on account usage and updated documentation.

List of Overdraft (OD) Facilities at Bank of Baroda

  • Baroda Smart OD
  • Overdrafts Against Bank's Own Deposits (LABOD/ODBOD)
  • Baroda Advance Against Securities (Life Insurance Policies)
  • Salary Privilege Account Overdraft
  • Overdraft against Fixed Deposits
  • Overdraft against Shares, Mutual Funds, Bonds, and Debentures
  • Overdraft against Gold
  • Overdraft for E-commerce Business (Amazon/Flipkart)