Bank of Baroda has come out with 2 loan schemes for MSMEs with the aim of easing access to finance by these entities. The first scheme, Baroda Mahila Swavalamban, is targeting women entrepreneurs. It offers competitive interest rates starting at 9.15% and is linked to the bank’s Repo Linked Lending Rate.
The loans under this scheme would range from Rs 20 lakh to Rs 7.5 crore with relaxed margin requirements for capital expenditure. For loans up to Rs 5 crore, no collateral is required if supported by a guarantee from the Credit Guarantee Fund Trust for Micro and Small Enterprises.
The second scheme, Baroda Smart OD, is a digital overdraft facility for GST-registered MSMEs. Under the scheme, a MSME can avail overdrafts from Rs 50,000 to Rs 25 lakh, based on GST returns, banking activity and online transactions, which will be assessed through a technology-driven credit assessment method.
Both the schemes are available to new and existing customers with simplified application process.
