Bank of Baroda has rolled out a new digital platform designed to simplify access to credit for micro and small enterprises (MSEs).
The initiative, called Bob Digi Udyam, allows businesses to obtain collateral-free working capital loans ranging from above Rs 10 lakh to Rs 50 lakh, with options available for both existing and new customers.
The platform has been introduced in line with the Union Budget 2024–25 announcement, encouraging public sector banks to strengthen their internal credit assessment systems for the MSME sector.
Using digital footprints and data-driven processes, it generates automated risk-based scorecards that enable provisional loan sanctions within minutes. Applications are then directed to branches through the bank’s TEJAS Loan Origination and Processing System for final approval.
Customers can access the scheme through a self-service digital mode or by seeking assistance at Bank of Baroda branches.
The system carries out eligibility checks, risk assessments and credit limit calculations digitally, aiming to provide a transparent and convenient borrowing experience.
The offering covers Cash Credit and Overdraft facilities with a tenure of 12 months.
Loans under this scheme are supported by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), eliminating the need for collateral and addressing a key challenge faced by small businesses in securing formal credit.
With this launch, Bank of Baroda has reinforced its commitment to supporting digital transformation in lending and improving access to finance for the MSME sector. The bank has also indicated plans to expand the scheme by enhancing loan limits and diversifying products in the future.
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