Bank of Baroda launches ‘Baroda Mahila Swavalamban’ and ‘Baroda Smart OD’ to enhance lending to MSMEs

Mumbai, India: In line with the Government of India’s initiative to facilitate financing to the MSME sector, Bank of Baroda (Bank), one of India’s leading public sector banks, has augmented its loan offerings for MSMEs with the introduction of two new offerings namely ‘Baroda Mahila Swavalamban’, a loan scheme with unique features especially for women entrepreneurs and ‘Baroda Smart OD’, an innovative 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.

Shri Lal Singh, Executive Director, Bank of Baroda said, “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, thus fostering economic growth and employment opportunities.

Key features of Baroda Mahila Swavalamban:

· Competitive Rate of Interest: The rate of interest starts at as low as BRLLR – i.e. 9.15% at present, which is a best-in-class offering across the industry.

· Loan Limits: Financing options ranging from ₹20 lakh to ₹7.5 crore.

· Relaxed Margin requirements: Margin norms have been relaxed for Capex loans.

· Relaxed Collateral Security Requirement: For loans up to Rs 5.00 crore, no additional collateral security is required if secured by CGTMSE guarantee (Credit Guarantee Fund Trust for Micro and Small Enterprises).

· Processing Charges: 50% rebate.

· Higher Repayment Period: Maximum 120 Months including moratorium period.

· Eligible Entities & Target Group: UDYAM and GST-registered enterprises owned by women/majority stake (i.e. minimum 51%) owned by women complying with the MSME guidelines (as defined under the MSMED Act 2006 and revised from time to time by GOI) are eligible to be financed under this scheme.

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.

‘Baroda Smart OD’ leverages the digital footprint available in the form of GST returns filed by individual/proprietorship current account holders of the Bank for credit assessment, enabling the Bank to offer quick and easy access to a line of credit to enterprising individuals. With overdraft amounts ranging from Rs 0.50 lakh to Rs 25 lakh, customers can conveniently avail Baroda Smart OD to meet short-term financial obligations in their business. The loan sanction process is fully digital, post which borrowers need to visit the branch for documentation and account activation.

Key features of Baroda Smart OD:

· Purpose: To provide short-term working capital finance to existing GST-registered individual/ proprietorship current account holders of the Bank.

· Type of Facility: Overdraft facility.

· Overdraft Amount: From Rs 0.50 lakh to Rs 25 lakh.

· Tenure: 12 months.

· Rate of Interest: 10.00% p.a. onwards.

· Processing Charges: Special rebate in processing charges.

· Straight-Through Processing (STP): Straight-through Processing up to sanction stage.

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