bob Digi Udyam
bob Digi Udyam: Bank of Baroda launches cash flow-based digital financing scheme for MSEs
Public sector lender Bank of Baroda on Tuesday announced the launch of bob Digi Udyam – a digital, collateral-free lending platform offering Micro and Small Enterprises (MSEs) quick access to working capital loans above ₹10 lakh to ₹50 lakh.
The initiative, aligned with the Union Budget 2024–25 announcement that public sector banks would develop in-house capabilities for MSME credit assessment, leverages the digital footprint of MSEs to enable faster credit assessment and reduce reliance on external assessment.
This marks a major step in strengthening credit accessibility for India’s small businesses. The scheme is open to both existing and new customers of the Bank.
The bob Digi Udyam platform leverages a wide range of digital data points to comprehensively assess credit applications. It generates an automated, risk-based scorecard that enables seamless credit assessment, significantly reducing the turnaround time for loan processing.
A provisional sanction is provided within minutes, after which the application is automatically routed to branches through TEJAS, the Bank’s Loan Origination & Processing System for the MSME segment, for final sanction and post-sanction formalities.
Eligible entities can apply for loans under bob Digi Udyam through both Do-it-Yourself (DIY) and Assisted mode at branches. The platform conducts digital eligibility checks, risk assessment, and credit limit calculations, ensuring a seamless and transparent lending process.
Speaking on the launch, Lal Singh, Executive Director, Bank of Baroda, said, “MSEs are key drivers of India’s economy, yet timely credit remains a challenge. With bob Digi Udyam, we bring a digital, cash flow-based lending model that delivers quick, collateral-free working capital finance. bob Digi Udyam is a step towards making MSE credit truly accessible, with plans to expand the offering to cover a wider range of credit needs and higher ticket sizes.”
bob Digi Udyam – At a Glance
· Purpose: Digital, cash flow-based working capital finance for MSEs
· Facilities: Cash Credit & Overdraft facilities
· Loan Size: Above ₹10 lakh to ₹50 lakh
· Tenure: 12 months
· Collateral: Nil – covered under CGTMSE
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