Bank Of Baroda Launches Targeted Loans For Women Entrepreneurs And Digital Msmes

(MENAFN- KNN India) New Delhi, Dec 7 (KNN)
Bank of Baroda has unveiled two innovative financial products designed to support micro, small, and medium enterprises (MSMEs), with a particular focus on women entrepreneurs and digital-first businesses.

The public sector lender introduced Baroda Mahila Swavalamban, a specialised loan scheme for women-led MSMEs, and Baroda Smart OD, a digital overdraft facility targeting GST-registered businesses.

The Baroda Mahila Swavalamban scheme offers loans ranging from Rs 20 lakh to Rs 7.5 crore, with an interest rate starting at the Baroda Repo Linked Lending Rate of 9.15 percent.

The program provides significant benefits for women entrepreneurs, including a 50 percent rebate on processing charges and loan terms up to 120 months, including a moratorium period.

Loans up to Rs 5 crore can be secured without additional collateral if backed by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

Eligibility for the Baroda Mahila Swavalamban is specifically tailored to women-owned MSMEs, requiring either Udyam and GST registration or a majority stake of at least 51 percent owned by women, in compliance with the MSMED Act 2006 guidelines.

This approach aims to provide targeted financial support to women entrepreneurs.

Complementing this initiative, Baroda Smart OD introduces a novel digital overdraft facility that leverages alternative credit assessment methods.

The product will utilise the digital footprint of MSMEs, particularly their GST return data, to determine creditworthiness.

The overdraft facility offers amounts ranging from Rs 0.50 lakh to Rs 25 lakh, with a 12-month tenure and an interest rate of 10 percent per annum.

Lal Singh, Executive Director, Bank of Baroda, emphasised the strategic importance of these initiatives.

"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," Singh stated.

These new offerings reflect the bank's commitment to supporting MSMEs through innovative financial products that address the unique challenges faced by small businesses, particularly those led by women and operating in the digital landscape.

(KNN Bureau)

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