Bank of Baroda launches “bob Digi Udyam” – a Cash Flow-Based Digital Financing Scheme for MSEs

Provides collateral-free loans from above Rs 10 lakh to Rs 50 lakh to both existing and new MSE customers to meet Working Capital requirements

Bengaluru, 2nd September 2025: Bank of Baroda (Bank), one of India’s leading public sector banks, announced the launch of bob Digi Udyam – a digital, collateral-free lending platform offering Micro and Small Enterprises (MSEs) quick access to working capital loans above ₹10 lakh to ₹50 lakh. The initiative, aligned with the Union Budget 2024–25 announcement that public sector banks would develop in-house capabilities for MSME credit assessment, leverages the digital footprint of MSEs to enable faster credit assessment and reduce reliance on external assessment. This marks a major step in strengthening credit accessibility for India’s small businesses. The scheme is open to both existing and new customers of the Bank.

The bob Digi Udyam platform leverages a wide range of digital data points to comprehensively assess credit applications. It generates an automated, risk-based scorecard that enables seamless credit assessment, significantly reducing the turnaround time for loan processing. A provisional sanction is provided within minutes, after which the application is automatically routed to branches through TEJAS, the Bank’s Loan Origination & Processing System for the MSME segment, for final sanction and post-sanction formalities.

Eligible entities can apply for loans under bob Digi Udyam through both Do-it-Yourself (DIY) and Assisted mode at branches. The platform conducts digital eligibility checks, risk assessment, and credit limit calculations, ensuring a seamless and transparent lending process.

Speaking on the launch, Shri 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. bob Digi Udyam is a step towards making MSE credit truly accessible, with plans to expand the offering to cover a wider range of credit needs and higher ticket sizes.”

bob Digi Udyam – At a Glance

· Purpose: Digital, cash flow-based working capital finance for MSEs

· Facilities: Cash Credit & Overdraft facilities

· Loan Size: Above ₹10 lakh to ₹50 lakh

· Tenure: 12 months

· Collateral: Nil – covered under CGTMSE

bob Digi Udyam aligns with the Government of India and Reserve Bank of India’s vision for digital transformation in MSE lending, broadening access to bank credit and empowering India’s MSE businesses to grow sustainably. Bank of Baroda is aligned with the Government’s vision of Viksit Bharat@2047.

Applicants can apply for bob Digi Udyam, by clicking on https://mllps.bankofbaroda.co.in/BOBSTPCustomerPortal/