The public sector Bank of Baroda has introduced special loan facilities for women entrepreneurs. The bank has enhanced its loan offerings for women-led MSMEs and launched the Baroda Mahila Swavalamban Yojana to support their growth and development. Additionally, it has introduced Baroda Smart OD, a digital overdraft facility that provides easy and instant short-term working capital for GST-registered enterprises.
According to the media reports, under the Baroda Smart OD scheme, GST-registered MSMEs are provided with quick short-term working capital through an alternative credit assessment methodology based on their digital footprint. The Baroda Smart OD facility employs a straight-through process up to the approval stage.
Bank of Baroda’s Commitment to MSME Growth
Bank of Baroda Executive Director Lal Singh stated that the bank is dedicated to meeting the credit needs of MSMEs and strengthening key business sectors such as women-led businesses and young entrepreneurs. The launch of Baroda Mahila Swavalamban and Baroda Smart OD aligns with the government’s efforts to create an inclusive financial system. These schemes are designed to promote sustainable economic growth by offering simple and seamless access to capital.
Baroda Mahila Swavalamban Scheme
- Interest Rates: Starting from the minimum BRLLR of 9.15%, which is the best offer in the industry.
- Financing Options: Loans ranging from ₹20 lakh to ₹7.5 crore.
- Relaxed Margin Norms: For capex loans, the margin norms have been relaxed.
- Collateral Requirements: Loans up to ₹5 crore do not require additional collateral security if guaranteed by CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises).
- Discounts on Processing Fees: A 50% discount on processing fees.
- Longer Repayment Period: Repayment terms extend up to 120 months.
- Eligibility: Enterprises and GST-registered women-owned businesses with a majority stake (minimum 51%) are eligible. Both new and existing customers of Bank of Baroda can apply through any branch nationwide.
Baroda Smart OD Scheme
- Purpose: Aimed at providing short-term working capital to GST-registered individual/proprietorship current account holders of the bank.
- Overdraft Limit: The overdraft amount ranges from ₹0.50 lakh to ₹25 lakh.
- Tenure: The loan tenure is 12 months.
- Interest Rates: Starting from 10.00% per annum.
- Special Discount: A discount is available on processing fees.