Bank of Baroda, SIDBI sign MOU to enable MSMEs to apply for restructuring
Bank of Baroda (BoB) has inked a memorandum of understanding (MOU) with the Small Industries Development Bank of India (SIDBI) for enabling micro, small, and medium enterprises (MSMEs) to apply online for one-time restructuring (OTR).
The MSME customers of the public sector bank can now access the web-based portal – ‘Asset Restructuring Module for MSMEs (ARM-MSME)’, said Bank of Baroda.
To support viable MSME entities, which are financially stressed because of the Covid-19 pandemic, the central bank has enabled banks to consider OTR proposals from MSMEs, under which the restructuring of the borrower account has to be implemented by 31 March 2021.
An automated /do-it-yourself (DIY) web-portal designed for MSMEs, ARM-MSME helps in self creating their restructuring proposal with financial viability projections by iteration of various scenarios and relief options, said Bank of Baroda.
Bank of Baroda, SIDBI sign MOU to enable MSMEs to apply for restructuring. Photo courtesy of baljinder kang/Wikimedia.org.
According to Bank of Baroda, its existing MSME borrowers can make use of the online facility of filing the application for restructuring of loan accounts without any charges.
Besides, borrowers can also make modifications to their online application or even re-submit a new online application. This will enable MSMEs for making their restructuring proposals ready by inputting only the most important data of their previous and projected financials.
Ram Jass Yadav – Bank of Baroda MSME and Retail Business Chief General Manager said: “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.”