Bank of Baroda launches bob PAL, a digitally-enabled Overdraft facility against Securities

Bank of Baroda announced the launch of bob PAL (Portfolio-backed Approved Limit), a digitally-enabled overdraft facility against securities, designed to provide customers with quick and convenient access to funds for short-term personal or business requirements without having to liquidate their investments.

Under bob PAL, eligible customers can pledge securities such as equity shares, mutual funds, bonds, debentures and Sovereign Gold Bonds (SGBs) to avail an overdraft facility ranging from ₹1 lakh up to ₹5 crore. The facility is also available digitally for limits of up to ₹1 crore, providing customers with a faster approval process.

bob PAL gives customers quick access to funds while allowing them to retain their investment portfolio and continue to enjoy applicable benefits such as dividends and bonus benefits.

Speaking on the launch, Shri Sanjay Mudaliar, Executive Director, Bank of Baroda said, “Access to funds should not come at the cost of long-term wealth creation. bob PAL enables customers to unlock the value of their financial investments when they need funds, while continuing to remain invested. With a simple overdraft structure and a seamless digital journey, bob PAL reflects Bank of Baroda’s commitment to providing convenient, flexible and digital-led financial solutions to customers.”

Key Features of bob PAL:

• Flexible Credit Limits: Overdraft facility starting from ₹1 lakh up to ₹5 crore per individual across the banking system, subject to applicable security-wise limits.
• Wide Range of Securities: Facility available against eligible equity shares, mutual funds, bonds, debentures and Sovereign Gold Bonds.
• Pay-as-you-use Facility: As an overdraft facility, interest is charged only on the amount utilised, helping customers manage their liquidity efficiently.
• Investment Continuity: Customers can access funds without selling their pledged investments, while continuing to receive applicable benefits from their investments.
• Digital Convenience: Digital onboarding and processing through bob World, Internet Banking and the Bank’s website for overdraft limits of up to ₹1 crore.

The launch of bob PAL strengthens Bank of Baroda’s retail lending portfolio by offering customers a convenient way to unlock liquidity from their financial assets. With higher limits and a digital journey for facilities up to ₹1 crore, bob PAL is designed to give customers faster and more flexible access to secured credit.