Bank of Baroda launches bob PAL overdraft facility

Bank of Baroda has announced the launch of bob PAL (Portfolio-backed Approved Limit), a digitally-enabled overdraft facility that allows customers to access funds against pledged securities. The service is designed for short-term personal or business needs without requiring the liquidation of investments.

Eligible customers can pledge various securities, including equity shares, mutual funds, bonds, debentures, and Sovereign Gold Bonds (SGBs). The facility offers credit limits ranging from ₹1 lakh up to ₹5 crore, with digital processing available for limits up to ₹1 crore to ensure faster approval.

Under this structure, customers retain ownership of their investment portfolios and continue to receive benefits such as dividends and bonuses. Interest is charged only on the amount utilized, providing a pay-as-you-use liquidity management option.