bob PAL Loan offers customers access to funds of up to ₹5 crore against eligible investments, allowing them to raise money without selling their investment holdings.
Bank of Baroda has launched the digitally enabled overdraft facility for short-term personal and business requirements.
The facility, called bob PAL (Portfolio-backed Approved Limit), allows eligible customers to pledge securities such as equity shares, mutual funds, bonds, debentures and Sovereign Gold Bonds to obtain an overdraft limit ranging from ₹1 lakh to ₹5 crore.
bob PAL Loan Against Investments
bob PAL Loan is structured as an overdraft facility backed by eligible securities. Customers can use the value of their investments to access funds while continuing to hold their portfolio.
The facility is intended for short-term personal or business financial requirements.
Since the investments are pledged rather than sold, customers can continue to receive applicable benefits such as dividends and bonus benefits.
The loan amount available to a customer depends on the eligible securities and their value, along with the applicable lending conditions.
Digital Facility Available Up to ₹1 Crore
Bank of Baroda has also made bob PAL available through a digital process for limits of up to ₹1 crore. This is intended to provide customers with a quicker way to access funds against their eligible investments.
For higher limits, customers can avail the facility up to the overall limit of ₹5 crore, subject to the bank’s applicable eligibility and lending conditions.
The minimum facility amount starts at ₹1 lakh, giving customers the option to raise funds against their investments without liquidating the underlying securities.
Which Investments Can Be Pledged
Eligible customers can use several types of financial investments as security under bob PAL. These include equity shares, mutual funds, bonds, debentures and Sovereign Gold Bonds.
The facility can therefore be used by investors who need short-term liquidity but do not want to immediately sell their investment holdings.
The pledged securities continue to remain part of the customer’s investment portfolio.
What Customers Should Know
bob PAL Loan is an overdraft facility, meaning customers can access funds within the approved limit rather than receiving a conventional lump-sum loan in the same manner as a standard term loan.
The facility is aimed at providing liquidity against existing investments.
Customers should check the applicable interest rate, eligible securities, margin requirements, repayment conditions and other terms with Bank of Baroda before using the facility.