Bank of Baroda, SIDBI facilitate digital submission of loan restructuring

By Edil Corneille

Bank of Baroda, India’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 Government of India and the Reserve Bank of India (RBI) have come up with several measures to extend relief to MSMEs to tide over the present pressing times. 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 INR 250 million. In this backdrop, Bank of Baroda has entered into MoU arrangement with SIDBI for a web-based platform namely the ‘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 the restructuring of loan accounts from the comfort of their home/office without any cost. The borrowers can also modify the online application or re-submit a new online application, as per their convenience. This initiative helps MSMEs to prepare their restructuring proposals by keying in only the most essential data of their past and projected financials.

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.”