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Loan Products


A wide range of solutions for your financial needs.


Bank of Baroda (Botswana) Ltd offers a wide range of retail loans to meet your diverse needs. Whether the need is for a new house, child's education, purchase of a new car or personal need, our unique and need specific loans will enable you to convert your dreams to realities.


Key Products;

 

  1.  Home loan
  2.  Personal Loan
  3.  Vehicle Loan
  4.  Education Loan


Home Loan


Target Group: Employees working with Govt./parasitals/ reputed organizations.   Self Employed persons 

Purpose;   (a)   For construction /acquisition of new dwelling unit
                  (b)   For purchase of old dwelling unit not more than 5/7 years
                  (c)   For purchase of plot and construction of house thereon
                  (d)   For repair/ renovation 

Eligibility: salaried person 25 times of Gross monthly salary, Self Employed person 2.50times of gross annual income as per BURS return. For salaried person satisfactory operative account should be with us for at least 6 months.

Max amount-P2.50mn. 

Interest : From Prime plus 2 % to Prime rate depending upon the value of security and repayment capacity, take home salary, cash margin provided etc

Repayment Period- Maximum180 months including moratorium

Margin: 25%  on construction/ repair and renovation 30% on purchase of old dwelling unit and 35% on purchase of plot  

Security : Mortgage of property

Other: Deductions not to exceed 60% of the total salary

Arrangement fee: Processing charges-0.50% minP300, Documentation Charges P300.  Legal charges actual


Personal Loan:


Target Group: Employees working with Govt./Parastatals/ reputed organizations. Self Employed persons for meeting their personal expenses 

Eligibility: 5 times of net salary 
 
Amount:P5,000 to 50,000

Security: Loan agreement & Undertaking from the employer to remit the installments, in case of Corporate Tie up arrangements . In other cases satisfactory operated salary account should be with us for at least 6 months.

Repayment Period: Max 36 equated monthly installments

Other terms:

    (a) Deductions not to exceed 60% of the total salary 
    (b) For Individuals salary account with us for 6 months
    (c) Rate of interest 5% above prime rate  
    (d) Salary account not necessary in case of tie up arrangement


Vehicle Loan


Target Group: Employees working with Govt./parasitals/ reputed organizations. Self Employed persons for purchase of car

Eligibility: salaried person 20 times of Gross salary , Self Employed person 2.50times of gross annual income as per BURS Return.

Amount of Loan: New vehicle- 85% of the cost of vehicle , Old vehicle; 70% of the cost of vehicle

Rate of interest: Prime plus 1 for new vehicle and for old 3% above prime 

Security: Lease agreement of the vehicle to be purchased and an undertaking from employer to remit the installments and noting of our Financial interest with Transport authorities in case of tie up arrangements.
  
Repayment Period: Maximum 60 months for new vehicle and 36 as per old vehicle
     
Other terms:

(a) Deductions not to exceed 60% of the total salary 
(b) For Individuals salary account with us for 6 months
(c) For Corporate business account with us 
(d) Salary account not necessary in case of tie up arrangement

Arrangement fee: Processing charges-0.50% minP300 , Documentation Charges P300

Educational Loan


Eligibility 
1. Students who have been admitted to various general and professional courses viz.


i) Graduate course in the faculties of Arts, Science, Commerce, Economics and other social Science


ii) Professional courses like Engineering, Technology, Medicine, and Agriculture etc.


iii) Post-graduate courses in the faculty of arts, science, commerce, Economics and other social science, Business/ Industrial management in various fields and courses conducted by an professional body recognized by the republic of Botswana


iv) Special courses for training in education or other professional courses, which may improve the knowledge and skill of the person in employment or self-employment. 


2. Age of the student should be as per the rules framed by the University of Botswana or any other institution recognized by the Republic of Botswana


3. As the objective of the scheme is to help student of merit, they should have consistent merit record in the earlier examination (say first class/higher second class) However, it should be primarily on the basis of not only the academic carrier but also in the light of the student’s aptitude, ability, character and financial circumstances.


4. If the student is eligible for scholarship or a stipend, loan may be considered to bridge the gap till he gets such scholarship or to supplement such scholarship or stipend. 

    
5. Student whether major or minor are eligible for the facility. Loan will be given to the parents in case of a minor applicant and in case of others; loan will be sanctioned in the name of the student. His parents/guardians can join him as joint borrowers.


Amount of Loan    
In case of general studies   -P50, 000
In case of professional courses -P100,000   
    
However, actual quantum for disbursement each year will be worked on the basis of yearly tuition fees, cost of books, stationery, equipment, and lodging and boarding expenses.


Margin 
 20% to 50% 


Rate of interest  
Loan up to P5000 –   PLR
Above P5000 and up to P25000- 2% over PLR
Above P25000-   3% over PLR 


Repayment Period
Repayment to commence within 4 months from the date of completion of the course or 4 months from the date of getting employment, whichever is earlier.


Repayment period will not exceed 5 years in case of general course and 7 years in case of specialized courses including duration of the course.


Security  

      
i) Personal guarantee of father/mother/guardian should be obtained or latter may be joint borrower.


ii) Life Insurance policy of the student has to be taken. Alternatively, life insurance policy of the student’s parent/guardian be taken.


iii) Collateral Security by way of mortgaged bond of property having forced sale value of 1.5 times of loan amount.


Miscellaneous     

  • Periodical progress report on the studies of the student should be submitted.
  • Disbursement of loan will be made term wise after assessing the requirement for each term, directly to the university/educational institution.
  • Interest on the loan will  be recovered either during the period of studies