Bank of Baroda inks MoU with SIDBI to help MSMEs apply online for one-time restructuring

People sit outside Bank of Baroda's branch in Kolkata. | File photo

In a bid to enable micro, small and medium enterprises (MSMEs) apply online for one-time restructuring (OTR), Bank of Baroda (BoB) on January 6 signed a memorandum of understanding (MOU) with the Small Industries Development Bank of India (SIDBI).

With the new agreement in place, the MSME customers of the public sector bank can now access the web-based portal, ‘Asset Restructuring Module for MSMEs (ARM-MSME)'.

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The Bank of Baroda's new initiative will help the viable MSME entities having credit exposure up to Rs 25 crore, under which the restructuring of the borrower account has to be implemented by March 31, 2021. This has been done after Reserve Bank allowed banks to consider OTR proposals from MSMEs.

Do-It-Yourself (DIY) web-portal for MSME -- ARM-MSME -- enables customers to self-create their restructuring proposal with financial viability projections. This is done by iteration of multiple scenarios and relief options.

Bank of Baroda said that existing MSME borrowers can now avail the online facility of submitting their application for the restructuring of loan accounts from the comfort of their home/office for free of cost.

Apart from this, the borrowers can also re-submit a new online application or modify the online application. The new web portal will enable MSMEs to prepare their restructuring proposals by entering only the most essential data of their past and projected financials.

"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," BusinessLine quoted BoB's Chief General Manager - MSME & Retail Business Ram Jass Yadav as saying.