On December 09 2024, Bank of Baroda (BOB), India’s leading Public Sector Bank (PSB), unveiled two new loans schemes targeting Micro, Small, and Medium Enterprises (MSMEs). The loan schemes are ‘Baroda Mahila Swavalamban’, a loan scheme designed specifically to support women entrepreneurs and ’ Baroda Smart OverDraft(OD)’, a digital OD facility targeting Goods and Services Tax (GST)-registered MSMEs.
- The main objective of both these new schemes is to ease access to financing for the MSME sector.
- The new and existing customers of the bank can avail the benefits of both schemes, with a simplified application process accessible through all branches of BoB across the country.
About Baroda Mahila Swavalamban:
i.Baroda Mahila Swavalamban offers competitive interest rates starting at 9.15%, the scheme is linked to the Baroda Repo Linked Lending Rate (BRLLR).
ii.The borrowers can avail loans ranging from Rs 20 lakh to Rs 7.5 crore, with relaxed margin requirements for capital expenditure(capex).
iii.No additional collateral security is required for loans up to Rs 5 crore, if secured by Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
Note: The CGTMSE is a government scheme to make collateral free loans easily accessible.
iv.Under this scheme, eligible women entrepreneurs will get significant benefits like: 50% discount on processing charges and loan terms for maximum 120 months, including moratorium period.
v.Target group and eligible entities who can avail the benefits of the scheme are: UDYAM and GST-registered enterprises owned by women or women who have majority stake in these enterprises (at least 51%) complying with the MSME guidelines, as defined under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) and updated at regular intervals by the Government of India (GoI).
About Baroda Smart OD:
i.Baroda Smart OD will use technology-driven credit assessments based on GST returns , banking activity, and online transactions.
- This will enable the bank to provide quick and easy access loan to enterprising individuals.
ii.The beneficiaries can avail OD facility ranging from Rs 50,000 to Rs 25 lakh, on an interest rate of 10% per annum for a period of 12-month.
iii.Also, this facility will use Straight Through Processing (STP) till the sanction stage of loans.
Recent Related News:
Vadodara(Gujarat) based Bank of Baroda (BoB) announced the launch of the ‘bob Utsav Deposit Scheme’, a 400-day period term deposit scheme.
- The scheme offers interest rates of 7.30% per annum (p.a.) for the general public, 7.80% p.a. for senior citizens, 7.90% p.a. for super senior citizens (aged 80 years & above) and up to 7.95% p.a. on Non-Callable Deposits.
About Bank of Baroda (BoB):
Managing Director (MD) and Chief Executive Officer (CEO)–Debadatta Chand
Headquarters- Vadodara, Gujarat
Tagline- India’s International Bank
Established – 1908
