Bank of Baroda, country’s third largest public sector bank, signed a memorandum of understanding (MOU) with the Small Industries Development Bank of India (SIDBI) to support MSME enterprises with an online facility of submitting their loan restructuring proposal.
The Govt. of India and RBI has come up with several measures to extend relief to MSMEs to tide over the present pressing times post pandemic COVID-19. Furthermore, RBI has extended the One-Time Restructuring (OTR) window till March 2021 to provide relief to MSMEs under financial stress, with credit exposure up to Rs. 25 crores.
In this backdrop, Bank of Baroda has entered into MoU arrangement with SIDBI for a web-based platform namely ‘Asset Restructuring Module for MSMEs (ARM-MSME)’
ARM-MSME is an automated / Do-It-Yourself (DIY) web-portal for MSMEs to self-create their restructuring proposal with financial viability projections by iteration of multiple scenarios and relief options. While using the portal, the existing MSME borrowers of the bank can avail the online facility of submitting the application for restructuring of loan accounts from the comfort of their home/office at free of cost.
The borrowers can also modify the online application or re-submit a new online application, as per their convenience. This initiative is the first of its kind to help MSMEs to prepare their restructuring proposals by keying in only the most essential data of their past and projected financials.
Speaking on the occasion, Dr. Ram Jass Yadav, Chief General Manager – MSME & Retail Business, Bank of Baroda, said, “As a bank, we are continuously working towards digitization and consumer friendly processes. This has led to our partnership with SIDBI for a platform like ARM-MSME, which will provide time saving convenient solution to MSMEs, at no additional cost. Through this partnership, we will hopefully assist numerous MSMEs who are in need of guidance and currently seeking advisory for the one-time restructuring application from external sources as of today.”