• Admin
• Dec 20, 2024
• Business Optimization

Bank of Baroda launches new MSME offerings

MUMBAI: Bank of Baroda, on Monday, announced two new offerings for MSMEs namely ‘Baroda Mahila Swavalamban’, a loan scheme especially for women entrepreneurs and ‘Baroda Smart OD’, a digital overdraft facility that provides quick short-term working capital finance to GST-registered MSMEs using an alternative credit assessment method based on their digital footprint. Baroda Smart OD employs Straight-Through Processing up to the sanction stage.

Lal Singh, Executive Director, Bank of Baroda said in a statement, “Bank of Baroda is committed to addressing the financing needs of MSMEs, empowering key business segments such as women-led businesses and young entrepreneurs. The launch of Baroda Mahila Swavalamban and Baroda Smart OD are aligned with the government’s push to create a more inclusive financial ecosystem and will provide simplified and seamless access to capital that will drive sustainable economic growth.

‘Baroda Mahila Swavalamban’ aims to encourage and support women entrepreneurs by providing them hassle-free loans to enable them to undertake diverse income generating activities. 

Here, the rate of interest starts at as low as BRLLR - i.e. 9.15% at present. Financing options range from ₹20 lakh to ₹7.5 crore. Margin norms have been relaxed for Capex loans. For loans up to Rs 5 crore, no additional collateral security is required if secured by CGTMSE guarantee (Credit Guarantee Fund Trust for Micro and Small Enterprises).

The target group and eligible entities under this sceheme are UDYAM and GST-registered enterprises owned by women/majority stake (i.e. minimum 51%) complying with the MSME guidelines (as defined under the MSMED Act 2006 and revised from time to time by GOI).

Both existing and new Bank of Baroda customers can apply for the Baroda Mahila Swavalamban scheme through all Bank of Baroda branches across the country.