Bank of Baroda: If you’re running a small business and looking for funds to grow, the BOB Digi Udyam Scheme from Bank of Baroda could be just what you need. This is a fully digital, cash flow-based, and collateral-free loan option tailored for micro and small enterprises (MSMEs).
The platform assesses your credit profile using digital data, allowing you to get provisional loan approval in just minutes. So, how do you go about applying for a loan? Let’s break down the process step-by-step.
What is BOB Digi Udyam?
It’s Bank of Baroda’s digital loan service that helps small businesses secure funds for their working capital needs.
Key Features
- Loan Limit: Rs 10 lakh to Rs 2 crore
- Loan Types:
- Cash Credit, Overdraft, Term Loan, Letter of Credit (LC), Bank Guarantee (BG)
- Unsecured loans, but all loans are backed by CGTMSE
- Both current and new customers can apply
- Existing loans can be transferred here (Takeover)
- The digital process operates on the bank’s TEJAS platform
- Get a digital provisional sanction in just 30 minutes
Who can apply?
- Individual Businessman
- Proprietorship Firm
- Partnership Firm
- LLP
- Private/Public Limited Company
- (Condition: Business must be registered under the MSME category)
How to apply for a loan?
Step 1: Go to the Bank of Baroda website → Business → MSME → Loan & Advances → bob Digi Udyam → Apply Online
Alternatively, you can apply through the JanSamarth portal.
Step 2: Fill in your mobile number, PAN, and Udyam registration number.
Step 3: Upload the necessary documents such as-
GSTR-3B for the last 12 months
Bank statement (12 months)
ITR (3/4/5/6)
Mobile number linked to Aadhaar
Step 4: Digital Scoring: The system generates an automated risk score based on your business’s cash flow.
Step 5: Provisional approval in 30 minutes. After this, the bank branch will handle the formalities like KYC and inspection.
Step 6: Final Sanction and Disbursement: The loan amount will be released once all verifications are done.
Interest Rate and Duration
Working Capital Duration: 12 months
The interest rate is based on the MSME category and the loan amount.
Rate is set according to CGTMSE coverage.
Important Points to Remember
No government subsidies available.
Margin money may differ based on the type of loan.
The process is digital, but branch verification will occur before final approval.
BOB Digi Udyam offers a digital solution for small businesses to obtain quick, easy, and collateral-free loans. If your business has a solid cash flow and all necessary paperwork, you could get loan approval in as little as 30 minutes.