Women-owned MSMEs with Udyam and GST registration or with a majority stake of at least 51 per cent owned by women complying with the MSME guidelines (as defined under the MSMED Act 2006 and revised from time to time by GOI) would be eligible to be financed under this scheme.
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Public sector lender Bank of Baroda launched two new initiatives on Friday to enhance lending to MSMEs. The bank introduced Baroda Mahila Swavalamban, a loan scheme for women-led MSMEs and Baroda Smart OD, a digital overdraft facility for easy access to short-term working capital finance to GST-registered MSMEs using an alternative credit assessment method based on their digital footprint.
The interest rate under Baroda Mahila Swavalamban starts at Baroda Repo Linked Lending Rate, that is, 9.15 per cent at present and the loan limit ranges from Rs 20 lakh to Rs 7.5 crore. For loans up to Rs 5 crore, no additional collateral security is required if secured by CGTMSE guarantee (Credit Guarantee Fund Trust for Micro and Small Enterprises). The repayment period would be up to 120 months including the moratorium period while processing charges would have a 50 per cent rebate.
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Women-owned MSMEs with Udyam and GST registration or with a majority stake of at least 51 per cent owned by women complying with the MSME guidelines (as defined under the MSMED Act 2006 and revised from time to time by GOI) would be eligible to be financed under this scheme.
On the other hand, Baroda Smart OD will leverage the digital footprint of MSMEs with data in the form of GST returns filed by individual/proprietorship current account holders of the bank for credit assessment. The overdraft amounts would range from Rs 0.50 lakh to Rs 25 lakh to meet short-term financial obligations in the business. The tenure would be 12 months with a rate of interest of 10 per cent p.a.
Speaking on the initiatives, Lal Singh, Executive Director, Bank of Baroda said, “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.”
