Bank of Baroda unveils “bob Digi Udyam” to boost digital credit access for MSEs

THEBUSINESSBYTES BUREAU

MUMBAI, SEPTEMBER 2, 2025

Bank of Baroda, one of India’s leading public sector banks, has launched “bob Digi Udyam”, a cash flow-based, collateral-free digital financing platform designed to provide quick and seamless working capital loans to Micro and Small Enterprises (MSEs).

Under the scheme, MSEs can avail loans ranging from ₹10 lakh to ₹50 lakh, with a tenure of 12 months, through Cash Credit and Overdraft facilities. The loans are fully covered under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), eliminating the need for collateral.

The platform leverages the digital footprint of enterprises to assess creditworthiness, generating an automated risk-based scorecard that enables provisional sanction within minutes. Applications are then routed through TEJAS, the Bank’s loan origination and processing system for MSMEs, ensuring faster approvals and transparent processing. Both existing and new customers can apply digitally, either through a do-it-yourself option or with assistance at branches.

Lal Singh, Executive Director, Bank of Baroda, said, “MSEs are key drivers of India’s economy, yet timely credit remains a challenge. With bob Digi Udyam, we bring a digital, cash flow-based lending model that delivers quick, collateral-free working capital finance. This is a step towards making MSE credit truly accessible, with plans to expand the offering further.”

The launch of bob Digi Udyam is aligned with the Union Budget 2024-25 announcement encouraging public sector banks to develop in-house MSME credit assessment capabilities. It also supports the Government of India and Reserve Bank of India’s push for digital transformation in MSME lending, advancing the vision of Viksit Bharat@2047.

MSEs can apply for bob Digi Udyam online at Bank of Baroda’s customer portal https://mllps.bankofbaroda.co.in/BOBSTPCustomerPortal/.