Bank of Baroda (BoB) has launched bob Digi Udyam, a digital, collateral-free lending platform designed to provide working capital loans to Micro and Small Enterprises (MSEs). This initiative aligns with the Union Budget 2024–25 focus on MSME digitization and in-house credit assessment by public sector banks.
Key Highlights
- Launched by: Bank of Baroda (BoB)
- Scheme name: bob Digi Udyam
- Purpose: To provide collateral-free, digital working capital support via Cash Credit (CC) & Overdraft (OD) facilities.
- Beneficiaries: Micro and Small Enterprises (MSEs) – both existing & new BoB customers.
- Loan Amount: ₹10 lakh to ₹50 lakh (based on cash flows & digital footprint).
- Tenure: 1 year.
- Collateral: Not required (backed by CGTMSE cover).
- Union Budget Link: Supports the 2024–25 announcement on MSME credit assessment digitalization.
- Application Mode:
- Do-It-Yourself (DIY) via BoB mobile app/website.
- Assisted mode at bank branches.
Loan Features
- Provisional sanction issued instantly (within minutes).
- Minimal documentation required, fully digital process.
- Coverage under CGTMSE ensures risk-free lending for the bank.
- Credit assessment based on MSE’s digital footprint & cash flows, reducing dependence on external agencies.
Technology Backbone
- Powered by: BoB’s TEJAS Loan Origination & Processing System.
- Guarantee: Backed by Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
- Faster turnaround time improves accessibility of credit to small businesses.
Significance
- Strengthens financial inclusion by empowering MSEs with hassle-free working capital.
- Reduces credit access gap for small businesses by leveraging digital lending ecosystem.
- Supports India’s Digital MSME Mission and Budget 2024–25 vision for self-reliant MSMEs.
- Enhances ease of doing business by cutting down loan processing delays.
Key Facts
- Bank of Baroda (BoB):
- Established: 1908 (Baroda, Gujarat)
- HQ: Vadodara, Gujarat
- Present CEO & MD (2025): Debadatta Chand
- Tagline: India’s International Bank
- CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises):
- Established: 2000
- Joint initiative of Government of India (Ministry of MSME) & SIDBI
- Provides credit guarantee cover for collateral-free loans to MSEs.
- TEJAS System: BoB’s in-house digital loan origination and processing platform for faster, paperless lending.