Getting funds is often a big challenge for small businesses and micro, small, and medium enterprises (MSMEs). To help solve this problem, the state-owned Bank of Baroda has launched a digital loan platform called bob Digi Udyam.
This platform offers cash-flow based and collateral-free loans, allowing businesses to quickly access working capital.
The loan process is mostly digital, and applicants can receive provisional approval within minutes, making it easier for MSME entrepreneurs to secure funding.
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What is bob Digi Udyam?
bob Digi Udyam is a digital loan platform introduced by Bank of Baroda to provide collateral-free loans to micro and small enterprises.
The platform uses multiple digital data points to evaluate an applicant’s credit profile. It creates an automated risk-based scorecard to assess loan applications.
Because of this automated system, the credit approval process becomes faster and loan processing time is reduced significantly.
The digital process runs on the bank’s advanced loan origination system called the TEJAS platform.
Through this system, applicants can receive provisional digital approval within minutes. Final approval is provided after completing KYC verification, inspection, and other necessary checks.
Loan Amount and Tenure
Under the bob Digi Udyam platform, entrepreneurs can avail loans from ₹10 lakh to ₹2 crore. These loans are mainly offered to meet working capital requirements.
The loan tenure for working capital limits is generally up to 12 months.
The interest rate depends on the loan amount and the MSME category.
All loans under this scheme are covered by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), which means the facility is completely collateral-free.
Financing Options Available
Businesses applying through bob Digi Udyam can access several financial facilities, including:
Cash Credit
Overdraft
Term Loan
Letter of Credit (LC)
Bank Guarantee (BG)
In addition, if a business already has a loan with another bank, it can transfer or take over that loan through this platform.
Who Can Apply?
Different types of businesses can apply for loans under this scheme, such as:
Individual entrepreneurs
Proprietorship firms
Partnership firms
Limited Liability Partnerships (LLPs)
Companies
However, the business must fall under the micro or small enterprise category. The facility is available to both existing and new customers of Bank of Baroda.
How to Apply for the Loan
Entrepreneurs can apply online through the official website of Bank of Baroda by following this path:
Business → MSME → Loan & Advances → bob Digi Udyam → Apply Online
Applicants can also apply through the government’s JanSamarth Portal at www.jansamarth.in.
Documents Required
While applying for bob Digi Udyam, applicants need to provide some important information and documents, including:
Mobile number
PAN
Udyam registration number
GSTR-3B returns for the last 12 months
Bank statements for the last 12 months
Most recently filed Income Tax Return (ITR)
In addition, the mobile number linked with Aadhaar and the mobile number linked with the bank account are also required.
How Long Does It Take to Get the Loan?
After submitting the application on the bob Digi Udyam platform, digital sanction can be received within about 30 minutes.
After that, the bank completes KYC verification and other necessary formalities. Once all procedures are completed, the loan amount is disbursed to the applicant.