The Bank of Baroda (BoB) has launched a digital lending platform called “bob Digi Udyam” to provide Micro and Small Enterprises (MSEs) with quick access to working capital loans. The platform offers collateral-free loans ranging from ₹10 lakh to ₹50 lakh, making it easier for small businesses to access credit. This initiative is aligned with the Union Budget 2024-25 announcement, which encouraged public sector banks to develop in-house capabilities for MSME credit assessment.
The bob Digi Udyam platform leverages the digital footprint of MSEs to enable faster credit assessment, reducing the reliance on external assessments. This marks a significant step in strengthening credit accessibility for small businesses, according to BoB. The scheme is open to both existing and new customers of the bank, making it a valuable resource for MSEs looking to expand their operations or manage their working capital.
The launch of bob Digi Udyam is a positive development for the MSME sector, which has been a key focus area for the government in recent years. By providing easy access to credit, the platform can help small businesses overcome one of the major hurdles they face in their growth journey. The use of digital technology to assess creditworthiness also reduces the need for physical collateral, making it easier for MSEs to access loans.
The initiative is also in line with the government’s efforts to promote digitalization and financial inclusion. By developing in-house capabilities for MSME credit assessment, public sector banks like BoB can play a more significant role in supporting the growth of small businesses. The launch of bob Digi Udyam is a significant step in this direction, and it is expected to have a positive impact on the MSME sector in the country.
Overall, the launch of bob Digi Udyam is a welcome move that can help strengthen the credit ecosystem for small businesses in India. By providing easy access to credit and leveraging digital technology, the platform can help MSEs overcome one of the major challenges they face in their growth journey. As the MSME sector continues to play a vital role in the country’s economic growth, initiatives like bob Digi Udyam can help support the growth of small businesses and contribute to the overall development of the economy.