Funding is often a major challenge for small businesses and micro, small, and medium enterprises (MSMEs). To address this issue, the state-owned Bank of Baroda has introduced 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 when needed.
The loan process on this platform is largely digital. Entrepreneurs can receive provisional approval within minutes after applying, making it easier and faster for MSMEs to obtain funds.
What is bob Digi Udyam
bob Digi Udyam is a digital loan platform launched by Bank of Baroda to provide collateral-free loans to micro and small enterprises.
The platform uses multiple digital data points to assess the applicant’s credit profile. Based on this data, the system creates an automated risk-based scorecard that evaluates loan applications.
This automated system speeds up the credit approval process and reduces the overall loan processing time significantly.
The entire digital journey is supported by the bank’s advanced loan origination system known as the TEJAS platform. Through this system, applicants can receive provisional digital approval within minutes.
However, the final approval is granted only after KYC verification, inspection, and other required checks are completed.
Loan Amount and Tenure
Under the bob Digi Udyam scheme, entrepreneurs can avail loans ranging from ₹10 lakh to ₹2 crore. These loans are mainly offered to meet working capital requirements of businesses.
The loan tenure for working capital limits is usually up to 12 months. Interest rates may vary depending 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). Because of this guarantee cover, the loan facility is completely collateral-free.
Types of Financial Facilities Available
Through bob Digi Udyam, businesses can access several financing options, including:
Cash Credit
Overdraft
Term Loan
Letter of Credit (LC)
Bank Guarantee (BG)
Additionally, if an entrepreneur already has a loan with another bank, the existing loan can also be transferred or taken over through this platform.
Who Can Apply
Different types of business entities can apply for this scheme, including:
Individual entrepreneurs
Proprietorship firms
Partnership firms
Limited Liability Partnerships (LLPs)
Companies
However, these entities must fall under the micro or small enterprise category.
The facility is available both for existing customers of Bank of Baroda and for new customers.
How to Apply for the Loan
Entrepreneurs can apply for the loan by visiting the official website of Bank of Baroda and 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 for Application
While applying for bob Digi Udyam, applicants must provide certain details 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)
Additionally, 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 in about 30 minutes.
After that, the bank completes KYC verification and other required formalities. Once all the procedures are completed, the loan amount is disbursed to the applicant.
