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Sub File - Adv 2

Dear Sir,

Re: Baroda Traders Loan - Reduction in Rate of Interest w.e.f. 01.12.2014.

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 engaged in trading of permissible goods.
Based on feedback received from branches and to enable our operating units to remain in
competition with peer Banks, it has been decided to reduce the applicable rate of interest
on Baroda Traders Loan for existing accounts as well as for new sanctions as per the
details given below:
Present Rate of Interest

Revised Rate of Interest w.e.f. 01.12.2014.

Upto Rs.4.00 Crores
: Base Rate + 2.00%
(i.e, 12.25% at present)
For enhancement of limit through deviations, the
following rates would be applicable:

Base Rate + 3.00%

i.e., 13.25% at present

Above Rs.4.00 Crs up to Rs.5 Crs : Base Rate + 2.00%

(i.e, 12.25% at present)

[irrespective of loan limit /type Above Rs.5 Crs:

of facility (OD/Term loan)]
With obligor rating BOB-4 & 5
BOB-6 and below

: Base Rate + 2.00%

(i.e, 12.25% at present)
: Base Rate + 2.50%
(i.e, 12.75% at present)

Please also note the following other conditions for careful compliance:
1. The above rates are effective from 01.12.2014.
2. Any enhancement in limit above Rs. 5 crore and /or concession in rate of interest
hereinafter to be considered by the committee of COCCED only. [However, please
note that the authority given to consider deviation in maximum limit vide Circular No.
BCC:BR:106/22 dated 21.01.2014 to Regional Heads (upto 50%) and Zonal Heads (upto
75%) will continue to be applicable for increase in limit upto Rs.5 Crores only.]
3. Consequently authority given to Zonal Heads/ Committee of General Managers on
Retail Banking & SME Banking at BCC to consider 0.50%/1% concession in rate of
interest respectively is discontinued henceforth.
4. In case of loans above Rs. 1 Crore, 2nd valuation of the property also to be carried out
and satisfied upon.

With the above revision, our interest rate for existing as well as fresh sanctions in our Baroda
Traders Loan has become very competitive vis-avis peer Banks. This provides us an excellent
opportunity to canvass quality Baroda Traders Loans at attractive rate of interest.
We request you to take a careful note of above change in rate of interest and utilize the
same for aggressive marketing of Traders Loans. It is observed that there is always tendancy
of the borrowers to get further concessions even after above downward revision of ROI.
Please convince the borrowers with our competitive offer and avoid putting up the proposals
for further concession.
Yours faithfully

(Rukmini V)
General Manager
(Retail Banking)