BoB Unveils Two New MSME Offerings: Baroda Mahila Swavalamban and Baroda Smart OD

Current Context: On 6th December 2024, Bank of Baroda (BoB) recently launched two new offerings aimed at supporting Micro, Small, and Medium Enterprises (MSMEs).

• Baroda Mahila Swavalamban:
• This scheme is designed specifically for women entrepreneurs.
• It offers competitive interest rates starting at 9.15%, with loan amounts ranging from ₹20 lakh to ₹7.5 crore.
• The scheme includes relaxed margin requirements and a 50% rebate on processing charges.
• Loans up to ₹5 crore can be availed without additional collateral if secured by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
• Baroda Smart OD:
• This is a digital overdraft facility targeting GST-registered MSMEs.
• It provides quick and easy access to short-term working capital finance, with overdraft amounts ranging from ₹50,000 to ₹25 lakh.
• The interest rate starts at 10% per annum, and the facility uses technology-driven credit assessments based on GST returns and banking activity.

Question:

1 What is the maximum loan amount available under the "Baroda Mahila Swavalamban" scheme by Bank of Baroda?

• A) ₹5 crore
• B) ₹7.5 crore
• C) ₹10 crore
• D) ₹20 crore

Answer: B) The loan amount under the "Baroda Mahila Swavalamban" scheme ranges from ₹20 lakh to ₹7.5 crore, aimed at supporting women entrepreneurs.