bob PAL Loan offers customers access to an overdraft facility of up to ₹5 crore against eligible investments, allowing them to raise funds without selling their investment holdings.
Bank of Baroda launched the digitally enabled facility on September 21, 2026.
The facility, called bob PAL (Portfolio-backed Approved Limit), is designed for short-term personal or business financial requirements.
Customers can pledge eligible securities and access funds while continuing to hold their investments.
bob PAL Loan Against Investments
Under the bob PAL Loan facility, eligible customers can obtain an overdraft limit ranging from ₹1 lakh to ₹5 crore.
The facility can be secured against securities such as equity shares, mutual funds, bonds, debentures and Sovereign Gold Bonds.
The facility is structured as an overdraft against securities rather than requiring customers to liquidate their investments.
This means eligible investors can access funds while retaining their investment portfolio and applicable benefits such as dividends and bonus benefits.
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 a faster way for eligible customers to access the facility.
For higher limits, customers can avail the facility against eligible securities subject to the bank’s applicable eligibility requirements and lending conditions.
The amount available depends on the securities pledged and their value.
How bob PAL Loan Works
Customers seeking the bob PAL Loan can pledge eligible investments as security for the overdraft facility.
The arrangement provides access to funds without requiring the underlying investments to be sold.
The facility can be used for short-term personal or business requirements.
As with other secured credit facilities, customers should check the applicable interest rate, eligibility criteria, security requirements and other terms before applying.
Key Investments Covered Under bob PAL
The securities eligible under the facility include equity shares, mutual funds, bonds, debentures and Sovereign Gold Bonds.
By using these investments as collateral, customers can seek liquidity while continuing to hold their portfolios.
The launch is part of Bank of Baroda’s broader expansion of digitally enabled banking and lending services.
The bank has recently introduced several digital and retail banking initiatives aimed at making financial services more accessible through technology.
