Dimapur, September 23 (MExN): Bank of Baroda has launched bob PAL (Portfolio-backed Approved Limit), a digitally enabled overdraft facility against securities, aimed at providing customers quick access to funds for short-term personal or business requirements without liquidating their investments.
Under bob PAL, eligible customers can pledge securities, including equity shares, mutual funds, bonds, debentures and Sovereign Gold Bonds (SGBs), to avail an overdraft facility ranging from Rs 1 lakh to Rs 5 crore. The facility is also available digitally for limits up to Rs 1 crore, enabling faster processing and approval.
The facility allows customers to access funds while retaining their investment portfolios and continuing to receive applicable benefits such as dividends and bonuses.
Speaking on the launch, Bank of Baroda Executive Director Sanjay Mudaliar said the facility enables customers to unlock the value of their financial investments when funds are required while remaining invested.
The bank said bob PAL offers flexible credit limits, subject to applicable security-wise limits, and is available against a range of eligible securities.
As an overdraft facility, interest is charged only on the amount utilised, allowing customers to manage their liquidity based on their requirements.
Digital onboarding and processing are available through bob World, Internet Banking and the bank's website for overdraft limits up to Rs 1 crore.
The bank said the launch of bob PAL strengthens its retail lending portfolio by providing customers a secured credit facility against financial assets, with higher limits and a digital process for facilities up to Rs 1 crore.
