A PROJECT REPORT

ON
NEW PRODUCT DEVELOPMENT IN MSME SECTOR FOR BANK OF
BARODA

Submitted in partial fulfilment of the requirement for the award of

Master of Business Administration (MBA)

Submitted to
L.N. Mishra Institute of Economic Development & Social Change
1. Jawahar Lal Nehru Marg, Bailey Road , Patna-800001

BIHAR GOVERNMENT AUTONOMOUS INSTITUTE AFFILIATED TO

ARYABHATTA KNOWLEDGE UNIVERSITY , PATNA

UNDER THE GUIDANCE OF : SUBMITTED BY :-

P.K. YADAV SHILPI SONI
Professor Roll No. - 220011
L.N.M.I., PATNA MBA ‘A’
Session:- 2022-24
1
 DECLARATION

I hereby declare that the Project report titled "New product development in MSME sector for
Bank of Baroda " prepared under the guidance of project mentor Prof. P. K. Yadav Sir &
mentor at Bank of Baroda Mr. Pradhyumna Kumar (Branch Manager) & is submitted in
partial fulfilment of the requirement for the Master of Business Administration in Lalit
Narayan Mishra Institute of Economic Development and Social Change, Patna, Bihar is my
original work and has not been submitted for the award of any other degree in any
university/institution.

Place:

Date : Name: Shilpi Soni

2
 AKNOWLEDGEMENT

It is a great pleasure and personal satisfaction in presenting this report as a part of my

internship at BANK OF BARODA that has given me experience of the corporate world.

I am indebted to many individuals who have either directly or indirectly made an important
contribution in the preparation of this report. I am grateful to P.K.Yadav sir Professor of
L.N.M.I, Patna for giving me the opportunity to experience in the corporate world.

With immense sense of gratitude, I hereby take the opportunity to thank my guide and
mentor Mr Pradhyumna Kumar (Branch manager of Bank of Baroda.) for their kind
contribution in Internship.

I would like to thank to entire staff of BANK OF BARODA for their immense support. I
would also like to thank all the respondent those names are not mentioned here without
whom the report would not be completed last but not the least I would like a special thanks
to my parents and friends for their support.

SHILPI SONI

(L.N.M.I MBA 2022-24)

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 TABLE OF CONTENT

S. No. CHAPTER Page No.

1. Introduction 5
2. Company Profile 8
3. SWOT Analysis 12
4. Product and Services 15
5. Loans Sactioned by Bank of Baroda 17
6. MSME 21
7. MSME Product 24
8. More About MSME 54
9. List of 10 Profitable MSME Business Idea 56
10. Benefit of MSME Registration 59
11. Conclusion 60
12 Bibliograply 61

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 Introduction

Bank of Baroda is an Indian state owned banking and financial services company
headquartered in Vadodara earlier known as Baroda) in Gujarat. It is among top four largest
bank in India and offers a range of banking products and financial services to corporate and
retail customers through its branches and through its specialized subsidiaries and affiliates.
Currently it is one of the big four banks of India, along with State Bank of India, ICICI bank
and Punjab National bank giving international presence. Based on 2017 data, it is ranked
1145 on Forbes Global 2000 list. BOB has total assets in excess of ₹ 3.58 trillion (making it
India’s 2nd biggest bank by assets)SS, a network of 5538 branches in India and abroad, and
10441 ATMs as of July, 2017.The government of India announced the merger of Bank of
Baroda, Vijaya Bank and Dena Bank on September 17, 2018 to create the country’s third
largest lender. The envisaged amalgamation will be the first-ever three-way consolidation of
banks in the country, with a combined business of Rs 14.82 lakh crore, making it the third
largest bank after State Bank of India (SBI) and ICICI Bank. It has been a long and eventful
journey for Bank of Baroda with it completing its centenary celebrations in 2008 starting
from a small building in Baroda to hi-tech corporate centre in Mumbai and having
international presence in over 20 countries, so it’s time to turn back the pages of time, and
salute the great moments of its historical saga.

MISSION
To be a top ranking National Bank of International Standards committed to augmenting stake
holders’ value through concern, care and competence.

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HISTORY
The Bank of Baroda was founded by the Maharaja of Baroda, H. H. Sir Sayajirao Gaekwad
III on 20 July 1908 in the Princely State of Baroda, in Gujarat, under the Companies Act of
1887 with a paid up capital of Rs.10 Lakh. Two years later, in 1910, the Bank opened its first
office branch in Ahmedabad. The founder, Maharaja Sayajirao Gaekwad, with his insight into
the future, saw “a bank of this nature will prove a beneficial agency for lending, transmission,
and deposit of money and will be a powerful factor in the development of art, industries and
commerce of the State and adjoining territories.” These words are etched into the mind, body
and soul of what has now become a banking legend. Following the Maharaja’s words, the
emblem was crafted to represent wealth, safety, industrial development and an inclination to
better and promote the country’s agrarian economy. This emblem shows a coin, symbolizing
wealth, embossed with an upraised palm, a safety cover for the depositor’s money, with a
cogwheel that promotes industrial growth in tandem with the two corn ears that stand for the
progress of the staple agricultural growth in the country.

Since its inception in 1908 in Gujarat, the bank had the logo of an industrial and agriculture
wheel with Sanskrit letters - `Akshayam te Bhavishyati’ (the future is secure). No history is
complete without mention of its heroes, mostly ordinary people, who turn in extra- ordinary
performances and contribute to building an institution. There were also the leaders, both
corporate and royal, who provided the vision and guided the Bank through trail blazing years,
and departing, left behind footprints on the sands of time. This Roll of Honor will be
incomplete without mention of men, of the stature of Maharaja Sayajirao Gaekwad,
Sampatrao Gaekwad, Ralph Whitenack, Vithaldas Thakersey, Tulsidas Kilachand and NM
Chokshi. Between 1913 and 1917, as many as 87 banks failed in India. Bank of Baroda
survived the crisis, mainly due to its honest and prudent leadership. This financial integrity,
business prudence, caution and an abiding care and concern for the hard earned savings of

6
hard working people, were to become the central philosophy around which business decisions
would be effected. This cardinal philosophy was over the 94 years of its existence, to become
its biggest asset. It ensured that the Bank survived the Great War years. It ensured survival
during the Great Depression. The bank grew domestically until after World War II. Then in
1953 it crossed the Indian Ocean to serve the communities of Indians in Kenya and Uganda
by establishing a branch each in Mombasa and kampala. The next year it opened a second
branch in Kenya, in nairobi and in 1956 it opened a branch in D a r – e s – s a la a m. Then in
1957 BoB took a giant step abroad by establishing a branch in London which was the center
of the British Commonwealth and the most important international banking center. In 1958
BoB acquired Hind Bank which was its first domestic acquisition. In 1961 it merged New
Citizen Bank of India which helped to increase its branches in Maharashtra. In 1960’s it
opened new branches in Fiji and Mauritius and expanded its operation to Tamil Nadu. In
1969 the Indian government nationalized 14 top banks, including BoB subsequent to which it
became state owned banking company. Even while big names were dragged into the Stock
Market scam and the Capital Market scam, the Bank of Baroda continued its triumphant
march along the best ethical practices and has managed to insulate itself away from fatal
transactions and has strictly adhered to the RBI guidelines.

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Company Profile

Type : Public

Traded as: BSE: 532134

NSE: BANKBA RODA

CNX Nifty Constituent

Industry : Banking Financial services

Founded : 20 July 1908;

110 years ago

Founder : Maharaja H. H. Sir Sayajirao

Gaekwad III

Headquarters : Vadodara, Gujarat, India

Number of locations : 5481 branch banks (2017)

Area served : Worldwide

Key people : P. S. Jayakumar (CEO)

8
 Shanti Lal Jain &

Vikramaditya Singh Khichi (ED)

Products : Consumer banking

Corporate banking

Credit Cards

Finance and Insurance

Investment and Banking

Mortgage Loans

Private Banking

Private Equity

Wealth Management

Revenue : ₹9.92 crore(US$1.4 million)

(2017)

₹1.27 crore (US$180,0 00) (2016)

Operating income : ₹5.07 crore (US$710,000)

(2017)

₹15.58 crore (US$2.2 million) (2016)

Net income : ₹3.14 crore (US$440,0 00) (2017)

₹-.54 crore (US$−75,0 00) (2016)

Total assets : ₹75.42 crore(US$10 million) (2017)

₹6.48 crore (US$900,000) (2016)

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Number of employees : 52,420 (2017)

52,021 (2016)

Capital ratio : 13.17% (2016)

With 5000 branches globally and staff strength of over 42,000 BoB has continued to retain its
leadership position amongst the nationalized banks. The Bank enjoys strong fundamentals,
large franchise value and good brand image. Story of Bob is scripted in corporate wisdom
and social pride. It is a story crafted in private capital, princely patronage and state
ownership. It is a story of ordinary bankers and their extraordinary contribution in the ascent
of Bank of Baroda to the formidable heights of corporate glory. It is a story that needs to be
shared with all those millions of people – customers, stakeholders, employees & the public at
large – who in ample measure, have contributed to the making of an institution. Ever since
it’s rebranding in 2005, Bank has consistently promoted its major strengths viz. large
international presence; technological advancement and superior customer service etc. Bank
had introduced the sub brand BARODA NEXT-State of the Art-Straight from the Heart to
showcase how it has utilized technology to nurture long term relationships for superior
customer experience. The sub brand has been reinforced by alternate delivery channels such
as internet banking, ATMs, mobile banking etc and robust delivery outfits like Retail Loan
Factories, SME Loan Factories, City Sales Office etc. Bank’s constant endeavor to strengthen
its branch/ATM network combined with well- informed staff offering personalized service at
its various touch points have enhanced customer interactions and satisfaction. Thus the Bank
has firmly positioned itself as a technologically advanced customer-centric bank. It won best
Public Sector Bank award at MCX and CNBC–TV18, India’s No. 1 Business medium
presented for the first time, the ‘India Best Banks and Financial Institutions Awards’ to
felicitate India’s best financial professionals for their contribution in building a robust
financial system in 2011.It won first prize under Indira Gandhi Rajbhasha Shield Competition
in 2012. It was in 2005 when Bob went in for rebranding by spending about Rs.800 million
10
on a high profile rebranding campaign which included Rs.50 million spent on appointing the
then Indian cricket team’s captain, Rahul Dravid as its Brand ambassador and a punch line
“India’s International Bank” added to the campaign. In the same year it built a Global Data
Centre in Mumbai for running its centralized banking solution (CBS) and other applications
in more than 1,900 branches across India and 20 other counties where the bank operates. The
bank also changed its decade long logo which comprise dual ‘B’ letterforms that hold the rays
of the rising sun which is called the Baroda Sun implying that the bank seek to be the source
that will help all the stakeholders realize their goals. The single-colour, compelling vermillion
palette was carefully chosen, for its distinctiveness as it stands for hope and energy. The bank
is the first among Public Sector Banks in India, to introduce and implement extended working
hours like 12-Hour Banking and 24-Hour Banking. The bank also introduced the unique
concept of Happy Hour banking which is designed to encourage customers to avail certain
services during lean business hours of the branch by providing them incentives, gifts as well
as concessions in service charges etc. This facility is available from 5 p.m. to 8 p.m. at 24
hour banking branches and from 6 p.m. to 8 p.m. at 8 am to 8 pm branches.

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 SWOT ANALYSIS

STRENGTH
Diversified branch network: Bank of Baroda, being the second largest bank in India, has a
diversified branch network mix which sustains low cost resource mobilisation. Bank of
Baroda has about 5330 branches throughout the country and has penetrated into the rural
India too with about 1964 branches in rural India. Complete Banking products portfolio –
Bank of Baroda has the complete portfolio of Banking services and financial products, many
of which are availed by their customers. Government accounts – There are multiple
government accounts which support the operation of Bank of Baroda. For example –
Railways pensioners get their pension from Bank of Baroda accounts. Similarly, differenti
government profiles need to have a government bank account to receive salary or pension in
which case Bank of baroda benefits over private banks. Strong Capital Position: Bank of
Baroda has maintained at good capital adequacy ratio (CAR) of 13.2% as on March 31,
2016.The bank’s net worth was at INR 305,860 million. The strong capital position helps the
bank to sustain its solvency levels in the time of adverse market conditions. Second Largest
Bank: Bank of Baroda is the second largest bank in India with its global business at INR
9,578,080 million as on March 31, 2016.

WEAKNESSES
High growth in NPAs: The growth in Bank of Baroda’s NPAs is outpacing the growth in its
advances. In FY2016, BOB’s NPA was 9.9% of gross advances. From 0.9% in 2009, the
bank’s NPA has grown to 5% in 2016. Higher growth in NPAs is offsetting benefits of
growth. Low overseas presence: Bank of Baroda is in the top 25 banks in Asia, yet the bank is
12
over dependent on its Indian market, i.e. 89.6%. BOB’s contribution of operations to revenue
and profits is very low when compared to the top 10 largest banks in Asia.The low overseas
presence increase business risks. Forex Scam : Several employees over the years have been
caught in Forex scam who were operating out of Bank of Baroda and HDFC. Even the RBI
penalized Bank of Baroda for the forex scam which was close to 6000 crores in amount.
Similarly, there were other scams involving bank employees. Low brand equity being
government banks – Government banks are known to advertise very less and only as per
budget available. As a result, the bank has very low brand equity when compared with private
banks. In terms of Government banks, State bank of India and other such state bank branches
as well as Bank of India has higher brand equity.

OPPORTUNITIES
Transformation to Bankassurance model: BOB has the vision to transform itself into a
bancassurance driven financial institution. BOB has ventured into a Joint Venture with
Andhra banks and a UK based company Legal and general, to form a life insurance company
called IndiaFirst Life Insurance. This model may yield results in the long run for Bank of
Baroda. Favourable interest rate policies: Improvement in business confidence in India has
driven RBI to exit from an expansionary monetary policy (low interest) to a more calibrated
monetary policy (high-interest rate). This will boost net interest margins for Indian banks.
Increasing adoption of technology: Online cash transactions are gaining popularity, especially
after the move of demonetization and launch of platforms like BHIM app. The increasing use
of E-transactions allows BOB to improve the return on technology spend. Bank Audits –
Conducting bank audits can help HDFC in avoiding the scams happening within branches.
Even during demonetisation, there were several scams which surfaced. Bank audits will keep
employees in check and will increase the overall reputation of the brand.

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Threats
Intensifying Competition: RBI has allowed foreign banks to invest up to 74% in Indian
banks. This allows competition to raise funds from the foreign banks and give competitions to
existing large public and private sector banks in India. Lukewarm global interbank lending:
Post the sub-prime crisis, the global market for interbank lending has been lifeless. The sub-
prime crisis has exposed various banking institutes of US, UK and many European countries.
This has made raising money in foreign currencies all the more difficult for the existing banks
Private banks – Private banks are a major competitor to government banks due to facilities
provided and because of the high functionality of Private banks over government ones.

14
 PRODUCTS AND SERVICES
BoB has a wide variety of products and services that meet diverse requirements of its vast
customer base. Some of the products provided by bank of Baroda in banking services are as
follows:

1. BARODA CURRENT ACCOUNT:- Current Deposits plan is ideal for professionals and
provides flexibility through overdraft facility. The most basic, most flexible deposit option for
those whose transactions take the form of an everyday exercise. Bank of Baroda’s Current
Deposits are the back- bone of all trading activities.

2. BARODA FLEXIBLE RECURRING DEPOSIT ACCOUNT:- Enjoy the facilities of a

recurring deposit along with the flexibility of varying monthly installments and a higher
yield. Key Benefits Regularizes savings by encouraging a saving habit. Loan/Overdraft
facility up to 95% of the deposit amount. Provision for nomination.

3. CAPITAL GAIN ACCOUNT SCHEME, 1988:- The Capital Gain Account Scheme
primarily helps you avail of tax exemptions from capital gains. It offers two types of
accounts- Savings and Term Deposits. Key Benefits Tax exemption under section 54(F) (4) of
Income Tax Act 1961. Provision for nomination

4. SAVINGS BANK ACCOUNT :- The savings bank account key benefits may be updated
as under immediately: - Key Benefits Simplest deposit option available to the depositor. Easy
to operate. Terms and conditions kept lucid to facilitate a layman’s understanding. No hidden
costs. Zero balance facility – Your Savings Bank Account with us remain alive even when the
balance reaches zero. This facility is only for salaried employees in Central/ State Govt.
Public & Private Limited Companies, Agents of Life & General Insurance Corporations and
Students. Even for those receiving compensation from govt. for acquisition of their
properties.

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5. NAGRIK BACHAT KHATA:- No frills. No hidden charges. Just banking. Bank of
Baroda launches a new small savings product – Nagrik Bachat Khata The Indian economy
has undergone a significant transformation since the economic reforms in 1991 with the
banking sector in the forefront. Nagrik Bachat Khata is a product through which Bank of
Baroda intends to extend its services to a vast section of population by making banking easy
and convenient. Key Benefits Services designed to cater to a vast majority of Indian
population Banking simplified Open account with an initial amount of just Rs. 50/- Zero
service charges for non-maintenance of a minimum balance of Rs. 50/-

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 LOANS SANCTIONED BY BANK OF BARODA

1. BARODA DESHVIDESH YATRA LOAN

Bank of Baroda introduces Baroda Desh Videsh Yatra Loan, a unique loan product specially
designed to cater to the needs of individuals to meet tour and travel expenses for visiting any
place in India and abroad. Key Benefits Travel now and pay later. Repayment in maximum 36
EMIs Simple procedures / formalities. Loan can be availed Upto Rs. 10.00 Lacs. Available
for undertaking pleasure trips within the country as well as for overseas. Caters to the needs
of individuals (salaried, self employed, professionals and individuals engaged in
business/industry) No margin money up to Rs. 50, 000.

2 .BARODA EDUCATION LOAN

Education is the most important investment one makes in life. Higher studies and
specialization in certain fields call for additional financial support from time to time. Whether
you are planning school education (nursery to standard XII) of your child, pursuing a
graduate or post- graduate degree, the Bank of Baroda Education Loans, can help finance
your ambitions and goals.

ADVANCES AGAINST SHARES/IPOS

i) Advances against Shares to Individuals: - Bank of Baroda has introduced scheme of

Advances to individuals against shares for genuine individual investors. The
maximum amount of finance that can be granted to an individual is to the extent of
Rs.20 lakh, subject to minimum margin stipulation from time to time.
ii) Bank Finance to employees to buy shares of their own companies: - In view of a
number of companies offering Employee Stock Options (ESOPs) and employee quota
in their IPOs, Bank of Baroda has introduced scheme to extend finance under ESOP/

17
 IPO to employees to buy shares of their own companies to the extent of –12- months
salary of the employee with a maximum of Rs. 10 Lacs subject to regulatory
guidelines on margin, which is presently as under: -
a. Initial Public Offering (IPO): 50% margin
b. b. Employees Stock Option Plan (ESOP): 10% margin.

3. BARODA VAIBHAV LAKSHMI LOAN

Bank of Baroda presents a unique Retail Loan product. Baroda Vaibhav Lakshmi specially
designed for women employees. A loan product that addresses the varied needs of working
women. Key Benefits:-Takes care of all kinds of expenses. Loan can be availed as term loan
or overdraft facility without any security. Loan can be repaid in maximum 36 EMIs.

4. BARODA LOAN TO PENSIONERS

We all retire from our jobs at some point in life. The continuous toiling and hard work
have made most of our dreams come true and have also provided for our loved and dear
ones. Yet there remain some dreams unfulfilled, some personal dreams that you need to
achieve on your own.
Key Benefits:-Maximum amount of loan – Rs. 1,00000/- or 10 times of your last
monthly pension, whichever is lower. Personal accidental death Insurance cover of up to
Rs. 75000/- This loan facility is available at all the branches of the bank, enabling you the
convenience of the Bank of Baroda branch near you.

5 . BARODA MARRIAGE LOAN

The marriage of your daughter or loving sister is usually one that you want to celebrate with
pride and joy. When it is the most important day of her life, and yours, you want to give her
the best memories of the day to cherish. You want to make sure that all arrangements are
made well in advance and every comfort meticulously provided for. The Marriage Loan from

18
Bank of Baroda is the ideal way to provide for such occasions. Working women can also
avail of this loan to meet expenses related to their marriage.

Key Benefits:-The Baroda Marriage Loan gives you the freedom of a personal loan, as high
as Rs. 2 Lakhs. Ease of repayment in 60- months, in Monthly/Quarterly/Half-yearly
installments or under the EMI (Equated Monthly Installments) option.HOUSING LOANS
TO NRIS / PIOS Bank of Baroda presents yet another innovative product offering in the form
of Baroda Housing Loans to NRIs / PIOs, a unique housing loan facility designed specially
for Non Resident Indians (NRI) and Person of Indian Origin (PIO). The Home Loans offering
from Bank of Baroda essentially provides NRIs and PIOs for finance in relation to the
purchase of a new house, construction of a new dwelling unit, financing of an old dwelling
unit, for repair / renovation / extension of your existing house, purchase of a plot and
repayment of loans from other housing finance companies. Key Benefits:- A loan product
tailor-made for NRI / PIO needs.Opt for Flexi Rate plan to hedge the interest rate risk by
breaking the loan into two separate accounts.

6. BARODA HOME IMPROVEMENT LOAN

Bank of Baroda brings to you a unique loan product. A loan for Repairs / Renovations /
Improvement / Extension of Home and for Furniture, Fittings & Fixtures.

Key Benefits:-Loan available for repairs / renovation / improvement / extension of the

existing house. Loan available for purchase of furniture / fixtures / furnishing / other gadgets
such as fans, geysers, air conditioners etc. required, to: o Our existing housing loan
borrowers.

New borrowers Free Credit Card: Free Credit Card (complementary for first year) will be
issued to borrowers with loan limit above Rs.2/-lacs. Type of card will depend on loan limit
as under Loan limit Type of card Above Rs.2/-lacs – Up to Rs.5/-lacs Above Rs.5/-lacs – Up
to Rs.10/-lacs.Paras International Exclusive Concessions in respect of Group borrowers:
Group borrowers and employees of approved organizations will be eligible for following

19
concessions for loans considered for repairs necessitated on account of natural calamities
such as floods, cyclones and earth quakes etc.

1. Rate of Interest – Reduction Upto 0.25%.

2. Margin – After satisfying about the reasonability of project cost, the margin may be
reduced by a maximum of 5%.

3. Cross guarantees – cross guarantees may be allowed.

7. FOREIGN CURRENCY LOAN (FCNR’B)

Currencies for loan: US $, Euro €, Japanese ¥ and Sterling £ Who is Eligible: This facility
would be available to all our existing Corporate / non corporate clients

 Purpose:

a.Working Capital.

b.Loan for capital expenditure such as purchase of new plant and machinery,
acquisition of equipments and other assets.

 Tenor: The facility can be allowed for a period from 3 months to 36 months subject to
periodical rollover.
 Rate of Interest: Interest rate would be linked to LIBOR of relevant currency + spread
depending on credit rating, payable at monthly rests. Commitment Fee: 1% p.a. of
unutilized amount of FCL if it is not availed within 30 days of sanction.
 Prepayment charges: 1% on the loan amount for the remaining period.
 Processing Charges:
1. Working Capital- Rs. 20,000/-
2. Term Loans- as applicable for rupee TL

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 MSME
(Micro,Small and Medium Enterprise)

MSME (Micro, Small, and Medium Enterprise) term was introduced by the Government of
India in agreement with the Micro, Small & Medium Enterprises Development (MSMED)
Act, 2006. The Indian government offers a myriad of benefits to MSMEs, so they can
function seamlessly in the Indian as well as global market. It was initiated and is managed
under the Ministry of MSME (MoMSME). MSMEs are entities engaged in the production,
manufacturing, processing, or preservation of goods and commodities. They are further
classified on the basis of investment and annual turnover as follows.

Turnover Investment
Enterprise
Threshold Threshold

Micro-
Up to 5 Cr Up to 1 Cr
Enterprise

Small Between 5 Between 1 Cr

Enterprise Cr and 50 Cr to 10 Cr

Medium Between Between 10

Enterprise 50Cr to 100 Cr to 20 Cr

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 Cr

These enterprises are considered the backbone of our Indian economy and contribute nearly
27% of the country’s GDP. In this article, we’ll discuss the best MSME business ideas which
can be sustainable in this new era.

Documents Required for MSME Registration

– PAN Card, Aadhar Card

– Business’s Address Proof
– Copies of Sale Bill and Purchase Bill
– Partnership Deed / MoA and AoA
– Copy of Licenses and Bills of Machinery Purchased

Registration Procedure

Any enterprise that qualifies under the definition of MSME can obtain Udaym Registration
under the MSME Act on the Udyam Registration portal, based on self-declaration with no
requirement to upload documents, papers, certificates, or proof.

On registration, an enterprise will be assigned a permanent identification number to be known

as “‘Udyam Registration Number”. An e-certificate, namely, the “Udyam Registration
Certificate” shall be issued on completion of the registration process. It has lifetime validity
unless canceled.

Registration can be done online by following the steps -

Move 1: Visit the Government MSME portal

Move 2: Fill the MSME registration form online with all required details by visiting
udyamregistration.gov.in

22
Move 3: Submit the application form along with documents, you shall receive a registration
number

Move 4: After successful submission of the application, the authority will register the
applicant’s business as MSME within a few working days

Move 5: MSME registration certificate shall be delivered by email or to the applicant’s

registered address.

23
24
 MSME PRODUCTS

Baroda Arogyadham Loan

 Purpose

 Setting up/purchase of ready possession of new clinics/hospitals, etc.

 Expansion/renovation/modernization of existing hospitals/facilities.

 Purchase of new medical diagnostic equipment/office equipment.

 To meet working capital requirements including stocks of medicines.

 Eligibility

 All MSMEs are regulatory and expanded.

 Exclusion: Real estate projects are not eligible.

 Promoters/owners should not be HUF.

Note: At least one of the promoters/director (non-individual)/doctors should have requisite

qualification in any branch of medical science.

 Interest rate and Charges

 Competitive prices linked to Repo Rate/MCLR

 Most Important Terms & Conditions

 Nature of Facility

Demand/term loan, overdraft, L/C, B/G

25
  Limit

Minimum: 0.05 Crores

Maximum:

Rural Rs. 0.25 crore

Semi-urban Rs. 6 crores

Urban Rs. 12 crores

Metro Rs. 30 crores

 Financial Ratios

DE ratio TTL/TNW 3:1

TOL/TNW 4.5:1

DSCR average 1.75

 DSCR should not go below the level of 1.25 in any particular year.

 Operating profit margin(before I, D & T)not to be below 10% of sales.

 Minimum interest coverage ratio should be 2.

26
  Current ratio 1.17(assessed only in working capital facilities)

 Other important conditions

 Stock/book debts statement to be obtained once a year.

 CIBIL condition as per below:

o For individuals, the score should not be below 700 (0 or -1 can be

considered)

o For non-individual, CMR ranking should not be below the rank of CMR -6.

o Collateral free loans up to Rs. 200 lakhs are eligible for guarantee cover
under CGTMSE.

o Credit rating not less than ‘BOB 6’ as per CRISIL model.

Baroda Artisans Credit Card

 Eligibility
 All artisans involved in the production/manufacturing process (and otherwise eligible
for credit facility for carrying out the proposed activities under any of the existing
bank’s schemes) would be eligible.
 Preference would be given to artisans registered with the development commissioner
(handicrafts)
 Thrust in financing would be on clusters of artisans and artisans who have joined to
form self-help groups (SHGs).
 All existing artisan borrowers of the bank enjoying credit facilities up to Rs. 2 lakhs
and having satisfactory dealings with the bank.
27
  Interest Rates & Charges
 Competitive pricing based on repo rate.
 Most Important Terms & Conditions
 Issue of Cards
The beneficiaries will be issued with a photo card indicating sanctioned limit and
validity period of credit facility. He would also be issued a passbook or a credit cum
passbook incorporating his/her details.
 Fixation of Credit
The credit limit would be fixed based on an assessment of working capital
requirements as well as the cost of tools and equipment required for carrying out
manufacturing processes. The maximum limit to be sanctioned under the scheme
would be Rs. 2 lakhs.
The limit is expected to be utilised as revolving cash credit and will provide for any
number of drawls and repayments within the limit. The bank may, however, fix a
repayment schedule for the portion of loan availed for purchase of tools and
equipment.
 Period/Validity
Maximum 3 years subject to annual review.
 Margin
Up to Rs. 25,000 No Margin
Above Rs. 25,000 up to Rs. 2 lakhs 15% to 25%
 Group Insurance

Beneficiaries who are registered with the development commissioner (handicrafts) would be
eligible for coverage under group insurance scheme and the premium paid by the
Government and the beneficiaries in the ratio 60:40 respectively or as mutually agreed
between Office of Development Commissioner (Handicrafts) and the insurance company.

28
 Baroda Contractor Scheme
 Eligibility
MSME units engaged in contractor/sub-contractor activity and falling within the
meaning of micro, small-medium enterprises as per regulatory definition and all other
entities with annual sales turnover up to Rs. 250 crores.
 Margin
OD: 25%
BG/LC: 20%
 Limits
Minimum – Rs. 10 lakhs, maximum: Rs. 30 crores (including FB and NFB)
interchangeability from FBWC limit to BG/LC may be permitted by the sanctioning
authority on merits.
 Adhoc Limit
The adhoc limits can be allowed as per extant guidelines.
 Interest Rates and Charges
Competitive pricing linked to repo rate/MCLR.

Baroda Covi HealthCare Scheme

 Target Customer
 Hospitals / Nursing Homes / Diagnostic Centres / Pathology Laboratories / Eye Centres
/ ENT Centres / Small and Medium size specialty clients like Skin clinics, Dental
clinics, Dialysis centres, Endoscopy centres, IVF centres, Poly clinics, X-ray labs etc.
 Manufacturers of healthcare products, suppliers of medical oxygen, Oxygen cylinders,
Oxygen concentrators, Pulse Oximeters, permitted drugs (including Covid-19 drugs),
Vaccines, Ventilators, PPEs, Inhalation masks, ICU Beds etc.
Importers of vaccines and Covid related drugs.
29
 Logistic firms engaged in critical healthcare supply.

 Purpose

 For setting up / expansion/ renovation/ modernisation of Clinics/ Nursing homes/

Hospitals/ Pathology Labs/ Diagnostic Centre / set up Oxygen plant along with power
back etc.

 For purchase of medical equipment including ancillary equipment.

 To provide finance to manufacturers of healthcare products / manufacture permitted

drugs (including Covid-19 drugs), Vaccines, Ventilators, PPEs, Inhalation masks, ICU
Beds etc. for meeting working capital requirement and acquisition of fixed assets.

 To import Vaccines and Covid related drugs.

 To finance logistic firms engaged in healthcare activities.

 Financing of Receivables of hospitals empanelled under AB PM-JAY

 Type of facility
 Term Loan, Cash Credit, Bank Guarantee (P/F), Letter of Credit

 Tenor of loan
 Term Loan upto 10 Years, Working Capital – Yearly Renewal.
 Eligibility
 Constitution as Individual/ Proprietorship Firm/ Partnership Firm/ Trust/
Society/Public Ltd / Private Ltd. (with powers to borrow).
 At-least one of the Promoters/ Director should have requisite qualification in the
respective branch of medical science from a recognized University like
MBBS/MD/BDS or any degree in physiotherapy/ radiology etc. or professional
qualified doctors should be a part of management of the Hospital / Nursing Home /
Pathological /Diagnostic Canters.
30
  Business unit should have required approvals/ registrations / permit / licence,
wherever applicable, from the statutory/ regulatory authority.
 ITR is mandatory in case of all existing units operating for more than one Financial
Year.
 Unit should not have incurred losses in past 2 years
 Quantum of Loan
Above Rs. 10 lacs.
 Rate of Interest
For MSME Regulatory: BRLLR+SP+1.65%. Others: MCLR + SP+1.80%
 Service Charges
Upfront Fee/ Processing Fee/ Inspection Charges: 50% concession. BG/LC Charges:
50% concession.
 Primary Security
 First and exclusive charge over the assets financed by the Bank.
 In case of Multiple Banking/ Consortium, Loan facility shall rank pari-passu with
the existing credit facilities, in respect of underlying security as well as cash flows
for repayment.
 Collateral Security
Nil Collateral for Loans upto Rs. 2.00 Crs, if covered under CGTMSE. Loans above
Rs. 2 Cr: Minimum 25% SARFAESI enabled tangible collateral security.

Baroda Laghu Udyami Credit Card

 Features
The purpose of Baroda Laugh Udyami Credit Card is to meet the credit requirements
of small business units, retail traders, artisans, village industries, small scale industrial
units and tiny units, professionals and self-employed persons, etc.
 Eligibility

31
 The scheme is applicable to all existing customers under MSE sectors, who are dealing
with us for the last 3 years satisfactorily and enjoying loan/operative limit up to Rs. 10
lakhs are eligible.
 Interest Rates & Charges
Rate of interest linked to repo rate (BRLLR)
 Most Important Terms and Conditions
 Limit
Maximum limit up to Rs. 10 lakhs.
 Period
The limit fixed under the scheme will be valid for a period of 3 years, subject to
internal annual review based on the conduct/operations of the account.
 Margin
Limit Margin
Up to Rs. 50,000 Nil
Rs. 50,001 to Rs. 10,00,000 25%

Baroda Loan to Business Correspondents

 Features
The purpose of Baroda Loan To Business Correspondents is:
 To purchase a computer and its peripherals and also set up or renovate an office.
 To meet working capital requirements for cash management and processing of day to
day transactions through settlement accounts.
 Purchase of vehicle for visits to villages to perform BC activities
 Eligibility
 Business correspondents and kiosk operators who have valid agreements with service
providers engaged by our bank for the purpose of providing banking services under
financial inclusion.
 Age: 18 to 60 years
32
  All vendors/suppliers (falling within SME regulatory/non-regulatory classification
only) of large real estate developers to which program limits have been approved.
 Interest Rates & Charges
Interest rate linked to MCLR/BRLLR
 Guarantee fee and annual service charge:
 ASF
 One time guarantee fee at a specified rate:
 1.00% in the case up to Rs. 5 lakhs
 0.75% in case up to Rs. 50 lakhs sanctioned to units in north-eastern region including
state of Sikkim.
 The ASF at specified rate (currently 0.5% in the case up to Rs. 5 lakhs) on pro rata
basis for the first and last year and in full for intervening years.
 Guarantee Scheme

CGTMSE

 Facility
Demand loan/TL, OD
 Repayment Period
 Demand loan: maximum 36 EMI’s.
 Overdraft: Repayable on demand subject to annual review
 Term loan (Vehicle): Maximum 60 EMI’s.
 Most Important Terms & Conditions
 Total Limit
 Area  Demand  OD  TL  Total
loan (WC) (vehicle loan)
 Rural  Rs.  Rs.  Rs.  Rs.1,50,000
and semi- 75,000 25,000 50,000
urban
33
 Urban  Rs.  Rs.  Rs.  Rs.
1,15,000 35,000 50,000 2,00,000
 Metro  Rs.  Rs.  Rs.  Rs.
1,50,000 50,000 50,000 2,50,000
 Margin
10% of the total amount of loan sanctioned

Baroda MSE General Credit Card

 Features
 Working capital requirement.
 Financing new project, i.e., acquisition of land/construction of building, plant and
machinery based on project cost/expansion project.
 Non-fund based facilities (bank guarantee and letter of credit)
 Interest Rates & Charges
Competitive pricing linked to repo rate.
 Most Important Terms and Conditions
 Limit
 Minimum: Rs. 25,000
 Maximum: Rs.10 lakhs
 Eligibility
 Any individual taking up non-farm entrepreneurial activity across the country.
 However, individuals will not be eligible for “Baroda MSE General Credit Card” if
he/she has been issued any type of credit card such as BKCC, BACC, BWCC, LUCC,
BOBCARD, any other type of credit card etc. except the cards for consumption needs.
 Margin
 For working capital/term loan/demand loan/non-fund based: 20% Land and building:
25 %
 Period
34
  Term/demand loan: Maximum 84 months with 12 months moratorium.
Working Capital: For 12 months subject to annual review.

Baroda Property Pride

 Overview
The Baroda Property Pride provides need based funding to individuals/units engaged in the
trade of any commodity/goods in physical form required by the community and trading in
them is not prohibited by law or opposed to public interest.
 Interest Rates and Charges
Competitive pricing linked to Repo rate/MCLR
 Terms and Conditions
 Nature of Facility:
Overdraft – General / Overdraft-Reducing / Term Loan / Non Fund based facility
 Maximum limit#:

Rural-2.00 Crores

Semi-Urban-7.50 Crores

Urban-15.00 Crores

Metro-25.00 Crores

#May vary based on CIBIL Rank

 Age Criteria :
Min: 20 Year, Max: 65 Year at the time of end of tenure of Loan
 Repayment Period :
Term Loan: 10 years
OD-General: 1 year, subject to annual review
OD-Reducing (applicable for fresh applicants only)

35
  Term Loan :
Less than 5 times of last 2 Years average of Cash accruals or Advance value of property,
whichever is lower
 TL (For Shop Development):
Max: 25% of OD LimitInterest Rates and Charges

Baroda SME Loan Pack

 Eligibility
 MSMEs in regulation and expanded.
 Borrower to exclusively to deal with BOB.
 Purpose
To provide hassle-free credit for working capital (fund based and non-fund based) as
also capital expenditure related to the business of the borrower within the overall
composite limit sanctioned to the borrower
 Composite Limit
The composite limit is 4.5 times of borrower’s tangible net worth as per last audited
balance sheet, or, Rs. 10 crores, whichever is lower.
 Delivery of the Product
By way of fund-based (short or long term) or non-fund based facilities as per the
requirements of the borrower, within the overall composite limit sanctioned to the
borrower.
 Period for TL
Maximum period up to 7 years.
 Margin
25% on all the facilities.

36
 Baroda SME Gold Card

 Eligibility
All micro, small and medium enterprises – as per regulatory definition and SMEs as per
expanded definition viz., entities with their annual sales turnover up to Rs. 250 crores
fulfilling the following criteria:
 In case of existing accounts:
A/c in standard category for last 2 years.
Obligor credit rating of “BoB-5” and above.
Working capital limits of Rs. 25 lakhs and above.
 In case of Takeover accounts:
Obligor credit rating of “BoB-5” and above.
No deviation allowed in takeover norms while taking over account.
Working capital limits of Rs. 25 lakhs and above.
Eligible for the facility only after one year of takeover of the A/c.
 Notes
Accounts having sole banking arrangement with our bank are only eligible for Baroda
SME Gold Card under both the above cases.
There should not be any major inspection irregularities in the account.
 Purpose
To meet emergent requirements and tie up a temporary mismatch in liquidity arising out
of delayed payment by buyers, tax payment etc.
 Nature of Facility
Working capital
 Limit
10% of the assessed MPBF
 Security
Charge on current assets, extension of charge on fixed assets if stipulated for CC.
37
 Personal guarantee of directors.
Collateral security as available to other facilities.
 Period
12 months – to be allowed on 4 occasions during the year for a maximum period of 2
months on each occasion. However, there should be a minimum gap of 15 days between
two drawls.
 Interest Rates & Charges
As per credit rating and as applicable to cash credit.
 Other Conditions
As applicable to regular cash credit and other facilities.

Baroda Vidyasthali Loan

 Features
Baroda Vidyasthali loan is a special scheme for financing educational institutions.
 Target group: educational institutions
 Eligibility
 All educational institutions including play school exposure are limited to ZEE
school, Euro kids, Kidzee, world school (and their franchise), where HUF are not
eligible.
 Credit rating BOB-6 and above only to be financed under the scheme.
 Nature of Facility
 Term loan/overdraft (OD to existing profit making concerns only).
 OD to those with L&B as primary security along with a fee module facility with
us.
 Purpose
 Construction of buildings including expansion, modernization and renovation
activities of educational institutions.
38
  Purchase of instruments for education/training purposes.
 Finance for the purchase of land alone is not permissible. However, if the land
cost is included in the total cost of the project, the same can be financed.
However, land cost should not be more than 20% of the total project cost and an
undertaking to be obtained that building construction will be completed within a
period of 2 years.
 OD for short term fund requirements based on cash budget provided the
institution is profit making and without any other bank liability.
 Vehicles can be financed as per CV finance product guidelines.
 Limit
 For Term Loan: Minimum – Rs. 25 lakhs, Maximum – Rs. 15 crores. (Rs. 25
crores for Mumbai/greater Mumbai, Delhi-NCR, Bangalore, Hyderabad). For
vehicle funding limit, as per CV guidelines (bus funding limit-max Rs. 2 crores).
 For Overdraft: Maximum – Rs. 3 crores (Rs. 5 crores for Mumbai/greater Mumbai
and Delhi-NCR) or 60% of expected total fees collection, whichever is less.
 Interest Rates and Charges
 Competitive pricing linked to repo rate/MCLR.

BOB Weaver Mudra Scheme

 Features
The scheme aims at providing adequate and timely assistance from the bank to the
weavers to meet their credit requirement i.e. for investment needs as well as for
working capital in a flexible and cost effective manner. The scheme will be
implemented both in rural and urban areas.
 Eligibility
Existing or experienced handloom weavers involved in weaving activity.
 Purpose
39
 Purchase of looms and related CAPEX and need based WC requirement
 Facility
Demand loan and working capital finance.
 Maximum limit
Rs. 5 lakhs (Inclusive of demand loan and W.C. finance)
 Margin
 20% of total project cost (capital expenditure and W.C)
 Margin up to Rs.10,000 or 20% whichever is less shall be provided by GOI
 Assessment of Limits
 Demand loan: 80% of the cost of looms and other capital expenditure
 Working Capital limit: Bank finance will be 20% of estimated/projected
turnover less margin
 Subsidy to be provided by Government
 Interest subsidy: To provide working capital loans at the interest rate of 6% to
handloom sector; the quantum of interest subsidy to be borne by the Government
of India will be limited to the difference between the actual rate of interest as
applicable/charged by the banks and 6% interest to be borne by the borrower.
The maximum interest subsidy would be capped at 7%.
 Margin money assistance: at 20% of the project cost subject to a maximum of
Rs.10,000 per weaver will be provided.
 Securities
 Exclusive hypothecation charge on machinery and stock.
 Credit guarantee from CGTMSE.
 Issuance of Mudra Card
 The beneficiaries under the Scheme will be issued a Mudra Card having the
daily withdrawal limit of Rs. 5000 per day.
 Interest Rates & Charges
 ROI as per the prevailing rate applicable to MSME segment as under.
40
  Competitive rate as per MCLR.
 Interest subsidy to be claimed from GOI: Difference amount i.e. 4.35% at
present subject to change in MCLR shall be calculated and adjusted in the
account on a quarterly basis. (Please note that interest subsidy will be available
only up to 3 years from the date of the first disbursement)
 “ROI as per prevailing rate applicable to MSME segment competitive rate as per
BRLLR Interest subsidy to be claimed from GOI. (Please note that interest
subsidy will be available only up to 3 years from the date of the first
disbursement)”

Dealers/Traders – Agriculture Inputs

 Purpose
 For maintaining stocks of agricultural inputs like seeds, fertilizers and pesticides,
etc. which could be hypothecated or pledged to bank.
 Dealers/distributors of cattle/poultry feed up to Rs. 40 lakhs.
 Dealers in tols required for horticulture/poultry, etc.
 Sprinklers/drip irrigation/agricultural machinery up to Rs. 30 lakhs.
 Fishing nets.
 Spare parts for oil engines/tractors/fishing boat engines.
 Petrol diesel pump run by co-op. sugar factory, agricultural produce marketing
society, fishermen co-op. society at fisheries jetty, etc.
 Advances against high yielding/hybrid seeds produced under contract with the
National Seeds Corporation Ltd. Or State Government or which bear the
certification of the said corporation or as the case may be, the concerned State
Government or any certification agencies authorised under the Seeds Act, 1966 and
at present completely exempted from all provisions of the directives of the selective
credit control
 Eligibility
41
 Any trader, firm or company or any institution or a co-operative society engaged in the
distribution of agricultural inputs is eligible under this scheme to the extent of the
credit needs related only to the distribution function (individual farmers are not eligible
under this scheme).
 Nature of Facility
Cash credit/BP/BD/LC/guarantee, etc.
 Security
Pledge/hypothecation of stock of agricultural inputs. Wherever feasible collateral
security in the form of land and building.
 Margin
15 %
 Repayment Period
12 months
 Other conditions
Stocks should be adequately insured against fire and SRCC risks with bank interest
clause.
 Interest Rates and Charges
As per RBI/bank’s guideline

Scheme For Financing Textile Units

 Nature of facility
 Term Loan/Demand loan, Cash Credit and
 Non-Fund based limit ie LC & Bank Guarantees
 Export facilities: PC, PCFC, FBP, FBD, PSDL
 Limit
 Minimum: Rs.25 lacs, Maximum: Rs.50 crores.
 Purpose
42
  Working Capital requirement both Fund Based and Non-Fund Based.
 Financing new project i.e. acquisition / construction of Land and Building and
Plant and Machinery (including second hand Plant and Machinery as per
guidelines) based on the project cost.
 Eligibility
 All new/existing units (including taken over from other banks) engaged in textile
activity (as recognised by Ministry of Textile, Govt. of India) including Job
worker /Traders (including e-commerce traders) under this scheme.
 Baroda SME Gold Card: Borrower accounts with ‘Standard’ category for the last
1 year with credit rating BOB-5 can be covered under this scheme.
 Constitution of borrower: Proprietorship / Partnership concerns / LLP / Private
Limited Co. / Ltd Co. HUF are not eligible.
 Method of assessment of working capital limit
 As per Bank Guidelines.

Note: Assessment of limit should be independent of TUFS subsidy i.e. while calculating
DSCR and Margin, projected TUFS subsidy should be excluded.

 Rate of Interest
Starting from BRLLR+SP+0.80%
(Concessions may be allowed based on merit of the case)

Note: For export credit facilities, the ROI to be charged as per extant Guidelines issued by
Bank.

 Margin
 Cash Credit

Stock and Book Debts*

25% (minimum).

Sanctioning Authority may prescribe higher margin on case to case basis.

43
  Term Loan
 Factory Land & Building-30%
 New Plant & Machinery and other misc. fixed assets-25%
 Second hand Plant & Machinery (under TUF scheme)-30%
 Second hand Plant & Machinery (imported)-30%
 Second hand Plant & Machinery (indigenous outside TUF scheme)-40%

*Book Debts up to age of 120 days may be financed.

 Period
 For working capital facilities : 12 Months
 For Term Loan: Maximum (including moratorium period).
 Security

For Term Loan:

1st charge over entire fixed assets and 2nd charge on current assets.
For Working Capital:
1st or 2nd charge over fixed assets and 1st charge on current assets.

Exposure
Collateral Security Requirement**

Decided by sanctioning authority.

Upto Rs.10 Crores

Above Rs.10 Min 40% required other than fixed assets of unit already charged

44
 Crores as primary security

 Service and Other Charges

Type of Service Charge Applicable Service Charges

Processing Charges/Upfront
Fee/Documentation

Remittance Charges 50% of applicable charges

Intersol Charges

Inspection Charges

Mortgage Creation Charges/ TEV Study 50% Concession to CMR 1-3 rated accounts
Charges may be allowed

PM SVANidhi Scheme (a special micro credit facility for street vendors)

 Facility Type
Fund Based- Working Capital Demand Loan (WCDL) / Overdraft
 Purpose
The scheme is a Central Sector Scheme i.e. fully funded by Ministry of Housing and
Urban Affairs (MoHUA) with the following objectives:
 To incentivize regular repayment; and
 To reward digital transactions (cash back upto maximum of Rs.1200.00)
45
 Eligibility
 The Scheme is available to all street vendors (SV) engaged in vending in urban areas
on or before March 24, 2020. The eligible vendors will be identified as per following
criteria
 Street vendors identified in survey and in possession of Certificate of Vending /
Identity Card issued by Urban Local Bodies (ULBs);
 The Vendors, who have been identified in the survey but have not been issued
Certificate of Vending / Identity Card; Provisional Certificate of Vending would be
generated for such vendors through an IT based Platform by ULBs.
 Street Vendors, left out of the ULB-led identification survey or who have started
vending after completion of the survey and have been issued Letter of
Recommendation (LoR) to that effect by the ULB / Town Vending Committee (TVC);
and
 The vendors of surrounding development/ peri-urban / rural areas vending in the
geographical limits of the ULBs and have been issued Letter of Recommendation
(LoR) to that effect by the ULB / TVC.
 Loan Amount

Upto Rs. 10,000/- in 1st tranche, upto Rs. 20,000/- in 2nd tranche, Upto Rs. 50,000/- in 3rd
tranche

 Margin
NIL
 Rate of Interest

BRLLR + SP + 5.65% p.a. i.e. with monthly rests.

 Tenor and Repayment

For 1st tranche: Maximum up to 12 months, Repayable in 12 EMI starting from one month
after disbursement and for 2nd tranche: Upto 18 months.

46
 Security
 Hypothecation of stocks/Goods, No collateral to be obtained.
 CGTMSE graded Guarantee Cover available on portfolio basis.
 Processing Fees / Guarantee Fee Payable:
NIL

Scheme For Professionals

 Eligibility
 Professionals in any discipline:
 Should possess a professional degree (recognized university)
 Minimum ITR – taxable income of Rs. 2.5 lakhs
 Minimum experience of 3 years in their respective fields. In case of CA/CS/ ICWA
3 years from the date of certificate of practice
 Minimum bureau score of 700
 Purpose
 WC requirement
 Purchase of equipment (expanding/renovating)
 For construction of office premises on self-owned land
 For acquisition of ready built new office premises
 NFB facilities
 Age of the borrower
 Minimum age – 21 years
 Maximum age – 65 years at the time of maturity of loan
 Nature of Facility

Term loan/demand loan/cash credit/non-fund based facilities

47
Vendor Bill Discounting Product for Vendors/Suppliers of Large Real Estate
Developers

 Eligible Borrowers

All vendors/suppliers (falling within SME regulatory/non-regulatory classification only) of

large real estate developers

 Eligibility
Eligibility criteria of real estate developer:
 Registered under RERA
 External credit rating – ‘A’ rated or above
 Minimum existence in real estate developer – Rs. 50 crores
 Profit after tax for the last 2 years - Positive
 Tangible net worth as per last ABS - Positive
 Tangible net worth as per last ABS – minimum Rs. 50 crores
 Margin
Minimum 10% of the bill amount
 Tenor of Finance
Maximum 90 days

Commercial Vehicle Finance Scheme

 Overview
Commercial Vehicle Finance Scheme provides hassle-free term loans for the purchase
of new commercial vehicles to First Time Buyers, Existing Fleet Operators and
Captive users.
 Eligibility
Individual / Proprietorship firm / Partnership Firm / Company engaged in
transportation and others for captive use.
48
 Key Features
 Faster loan – Our loan sanction and disbursal is one of the quickest. We provide
hassle-free documentations.
 No Collateral Required
 No need for existing Relationship
 Standalone Sanction process for the existing borrowers
 Simplified loan assessment method
 No hidden charges.
 Loan Amount
Up to Rs. 30 crores
 Loan Tenure
Up to 5 years
 Margin
 Loans up to 100% on chassis (ex-showroom price) and loan up to 60% on the
body.
 Loan up to 95% on fully built vehicles
 Interest Rates and Charges
 Concessional & Competitive Rate of Interest
 Concessional One Time Processing Fees
(For MSME’s interest rate is linked to the Repo Rate (BRLLR). Other enterprises
interest rate is linked to yearly MCLR)

Loan for Construction and Mining Equipment

 Overview
Loan for Construction & Mining Equipment provides hassle-free term loan for
purchase of new construction / mining equipment to eligible First Time Buyer, Small,
Medium, Large and Strategic Segment Contractors and Mining Operators.
49
  Eligibility
Individual / Proprietorship Firm / Partnership Firm / Company engaged in Construction
or Mining activity (Contractors).
 Key Features
 Faster loan – Our loan sanction and disbursal is one of the quickest. We provide
hassle-free documentations.
 No Collateral Required
 No need for existing Relationship
 Standalone Sanction process for the existing borrowers
 Pre-Sanctioned Loan Limit for existing borrowers
 Simplified loan assessment method
 No hidden charges
 Loan Amount
Up to Rs. 50 crores
 Loan Tenure
 Up to 5 years
 Margin Minimum 10%

Composite Loans
 Purpose
Fixed capital investment and/or working capital requirement.
 Type of Facility

Composite loans

 Amount of Loan

Up to Rs. 100 lakhs

 Margin

50
  Nil in case of composite loan up to Rs. 25,000
 15% - 25% in case of composite loans above Rs. 25,000 and up to Rs. 100 lakhs
 Security
 No collateral security/third party guarantee be taken
 Repayment Period
 Minimum 3 years and maximum of 10 years (which can be extended), with
initial holiday of 12 months to 18 months.
 Minimum 3 years and maximum of 10 years, with initial holiday of 12 months
to 18 months, both for interest and principal.
 Interest Rates & Charges
 Competitive pricing linked to repo rate/MCLR

SME Short Term Loan

 Purpose

To meet temporary liquidity shortfall/mismatch in the line of business activity. This

facility is not to be extended for other purposes like repayment of loans of other banks or
institutions, unsecured loans, etc.

 Borrower Group
 MSMEs in regulatory and expanded.
 Exclusion sectors: Real estate sector, power sector, education sector IT sector.
 Eligibility Criteria

Satisfactory credit rating (BOB-5 and above) without continuous decline for the last three
years and for 4 half years for accounts where credit rating is done on a half-yearly basis.

Latest financial documents with satisfactory performance.

51
Satisfactory dealings with the bank for at least three years without any major inspection/audit
irregularities

SME Medium Term Loan

 Purpose

To augment enterprises’ working capital gap and to help in the improvement of current ratio
and also for meeting genuine business requirements. The facility will also be available for
repayment of secured and unsecured Loans of other banks or institutions, but not for any
purpose, which is not related to the enterprises’ activity.

 Borrower Group
 MSMEs in regulatory and expanded
 All other entities with their annual sales turnover of Rs. 1 crore to Rs. 250 crores. In
case of new projects, where the estimated sales turnover in the first full year of
commercial operation (12) months is up to Rs. 250 crores. For real estate projects,
where project cost is up to Rs. 50 crores.
 Eligibility Criteria
 Satisfactory credit rating without continuous decline for the last three years and for
4 half years for accounts where credit rating is done on a half-yearly basis.
 Latest financial documents with satisfactory performance in terms of sales/turnover
and profits. Negative variance, if any, should not be more than 10%.
 Satisfactory dealings with the bank for at least three years without any major
inspection/audit irregularities.
 Loan Amount
 Minimum: Rs. 25 lakhs
 Maximum: Rs. 500 lakhs
 Period
 Not exceeding 36 months, to be repaid in equal quarterly or half-yearly
instalments.
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 Unified processing, upfront & documentation charge
 25% concession in the applicable.
 Interest Rates and Charges
 Competitive pricing linked to Repo rate/MCLR.

MSME Capex Loan and Capex Card

 Purpose
 The loan to be considered for the following capital expenditure related to the
regular business activity:
 Replacement of old machinery, purchase of balancing equipment,
modernization, investment in research and development, installation of captive
power plants and upgradation of technology, alteration in the layout of
factory/office, acquisition of software, hardware, and tools, jigs, fixtures etc.
forming part of plant and machinery, purchase of cars, passenger cars for staff
and other vehicles for use of business purpose.
 Eligibility
MSME borrowers (Regulatory) and SME (Expanded) rated BOB-5 and above. The
manufacturing/service sector units should have been established in the line of activity
for a minimum period of two years, Account running with satisfactory dealings for the
last one year and above and no adverse features are reported in the conduct of the
account.
 Limit
 25% of gross block of plant and machinery for MSME (Manufacturing) as per
last audited balance sheet or 10% of the working capital for service sector based
on DSCR and subject to cap
 Baroda MSME capex card: Minimum 25 lakhs and maximum Rs. 5 crores
 Baroda MSME capex loan: Minimum 25 lakhs and maximum Rs. 2 crores

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  The facility Is made available as fund-based/non-fund based limits (i.e., the
establishment of LCs), ensuring that aggregate exposure does not exceed the
overall limit.
 Margin
 Land and building- 30%, plant & machinery- 25%
 Repayment
 3 to 7 years including the moratorium period.

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 More About MSME
Micro,Small, and Medium Enterprise term was introduced by the Government of
India in agreement with the Micro, Small & Medium Enterprises Development
(MSMED) Act, 2006. The Indian government
offers a myriad of benefits to MSMEs, so they can function seamlessly in the Indian as
well as global market. It was initiated and is managed under the
Ministry of MSME (MoMSME). MSMEs are entities engaged in the production,
manufacturing, processing, or preservation of goods and commodities. They are
further classified on the basis of investment and annual turnover as follows:-

Enterprise Turnover Threshold Investment Threshold

Micro-Enterprise Up to 5 Cr Up to 1 Cr
Small-Enterprise Between 5 Cr to 50 Cr Between 1 Cr to 10 Cr
Medium-Enterprise Between 50 Cr to 100 Cr Between 10 Cr to 20 Cr

These enterprises are considered the backbone of our Indian economy and contribute
nearly 27% of the country’s GDP. In this article, we’ll discuss the best MSME
business ideas which can be sustainable in this new era.

Documents Required for MSME Registration

– PAN Card, Aadhar Card
– Business’s Address Proof
– Copies of Sale Bill and Purchase Bill
– Partnership Deed / MoA and AoA
– Copy of Licenses and Bills of Machinery Purchased

Registration Procedure
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Any enterprise that qualifies under the definition of MSME can obtain
Udaym Registration under the MSME Act on the Udyam Registration portal, based
on self-declaration with no requirement to upload documents,
papers, certificates, or proof.
On registration, an enterprise will be assigned a permanent identification number to
be known as “‘Udyam Registration Number”. An e-certificate, namely, the “Udyam
Registration Certificate” shall be issued on completion of the registration process. It
has lifetime validity unless canceled.

Registration can be done online by following the steps-

Move 1: Visit the Government MSME portal

Move 2: Fill the MSME registration form online with all required details by visiting
udyamregistration.gov.in
Move 3: Submit the application form along with documents, you shall receive a
registration number
Move 4: After successful submission of the application, the authority will register
the applicant’s business as MSME within a few working days
Move 5: MSME registration certificate shall be delivered by email or to the
applicant’s registered address.

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 Lists of 10 Profitable MSME Business Ideas

Handicrafts Seller
The sale of handicraft products is currently being promoted in numerous cities and
states. Steps are being taken to make handicraft products reachevery home in India
including metalware, paintings, shawls, carpets,
woodware, earthenware, embroidered goods, bronze and marble sculptures, etc. This
could be a key MSME business in 2022.

Sanitary Napkins
Sanitary Napkins appear under nonwoven textures, which as a good come under
specialized material. By taking up this initiative, you’ll be empowering millions of
girls and women to practice and achieve the right hygiene standards and at the same
time, you’ll receive outstanding government support from the government.

Online Business
Social media specialists, digital marketers, SEO experts, and website
developers are in great demand these days. It can be started at ground levelwith zero
investment just by the use of a smartphone, computer, and a
high-speed internet connection are all that is required for such businesses.

Bakery Services
Bakery products are in high demand nowadays because of the joy they provide to
festivities. From pastries and cookies to cakes and other bakery products, you may start
your own bakery business with a small cost and create significant money.

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Online Tutoring
After the Covid era, technologies have enabled students to study online from
anywhere. As a result, you can work as an instructor from the comfort of your own
home if you have a strong understanding of any teaching
subject.

Jute fabrics products

There is a reasonable need for jute bags in India which makes it one of the best MSME
businesses in India. Jute fabrics are tough, reliable, light,
desirable, and more inexpensive than most of the textures earned from fibers and are
extremely easy when sewn.

Hand Sanitizer and Mask

As per the current demand of time and scenario, the business of hand
sanitizer and masks is another on-demand business. Nowadays, it becomes an essential
thing to carry, to avoid germs. Masks can also be used in view of increasing air
pollution in metro cities. Plus, it’s a profitable business that can be started with a low
investment.

Food Catering
Food Catering is in demand on every occasion, whether it’s birthday parties,
weddings, events, anniversaries, and so on. It’s a highly profitable business that just
requires investment in raw material, labor, and buying tables,
chairs, tents, and utensils. However, it has more investment than other ones, but it
would be a boon if you opt for it.

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Biscuit & Chocolate Making Business
The Biscuit and chocolate-making business is very lucrative. Additionally, you can
initiate on a small-scale basis. The previous year’s annual report states that millions
of people are consuming biscuits and chocolates. It is a conventional activity and an
entrepreneur can initiate this business with
low startup capital also.

Dropshipping
Dropshipping is a retail business model where there is no need to buy and store
products to be able to sell them. Without having to manage an
inventory, the order is shipped directly from the third party to the customer. The
business has already developed in the west and is currently booming in India.

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 Benefits of MSME Registration

However, registration of MSME is not mandatory, but if you choose. register, then there
are many benefits that can be enjoyed by MSME firms after obtaining registration.
Some of the benefits are:

➤A lot of government schemes can be availed by MSMEs such as unsecured MSME loans,

easy loans, micro business loans, subsidizedrates, etc.

➤Registered businesses with an MSME certificate will benefit and canavail of concessions

as well from various government departments,

including electricity.

➤Exemption on excise and indirect taxes are provided.

➤Avail tax rebates customized for MSMEs credit for Minimum

Alternate Tax (MAT) and other special schemes from banks custom-made for MSMEs.

➤ISO Certification Reimbursement.

➤Avail special rebates and concessions on patents and industry set-ups.

➤Get credit guarantee schemes and financial support from thegovernment.

➤Special consideration on International Trade fairs.

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 CONCLUSION

As my internship project on the topic "MSME (Micro, Small, and Medium Enterprises) at
Bank of Baroda" comes to an end, I reflect on this enriching experience with a sense of
accomplishment and gratitude. Working on this project has provided me with invaluable
insights into the world of banking, particularly in the context of supporting and fostering the
growth of Micro, Small, and Medium Enterprises.

Throughout the internship, I have had the privilege of working closely with a team of
dedicated professionals who have guided and mentored me throughout the project. I am
thankful for their support and encouragement, which has played a crucial role in my learning
and development.

During the project, I delved deep into understanding the challenges and opportunities faced
by MSMEs in today's economic landscape. I conducted comprehensive research, analyzed
data, and proposed strategies to enhance the bank's support for this vital sector. Through this
process, I have gained a better understanding of the role banks play in nurturing small
businesses and contributing to economic growth.

Moreover, the internship has strengthened my analytical skills, research capabilities, and
problem-solving abilities. I have also improved my communication and presentation skills
through interactions with various stakeholders during the project.

As I conclude this internship, I am confident that the findings and recommendations made
during this project will have a positive impact on Bank of Baroda's efforts to serve MSMEs
effectively. I hope that my work will contribute to the bank's commitment to promoting
financial inclusion and empowering small and medium-sized businesses.

I am grateful to Bank of Baroda for providing me with this opportunity to work on such a
meaningful and relevant project. The experience and knowledge gained during this
internship will undoubtedly shape my future academic and professional pursuits in the field
of banking and finance.

In conclusion, my internship project on "MSME at Bank of Baroda" has been a

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transformative and rewarding experience. I look forward to leveraging the skills and insights
gained here to make a positive difference in the banking sector and contribute to the growth
and success of businesses in the future.

WEBILIOGRAPHY

www.bankofbaroda.in

https://superca.in/

www.slideshare.net

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