Money & Banking

BoB signs MoU with SIDBI to enable MSMEs apply online for one-time restructuring

Our Bureau. Mumbai | Updated on January 06, 2021

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

The public sector bank’s MSME customers can now access the web-based portal, ‘Asset Restructuring Module for MSMEs (ARM-MSME)’. To support viable MSME entities (with credit exposure up to ₹25 crore), which are under financial stress due to the fallout of the Covid-19 pandemic, the central bank has allowed banks to consider OTR proposals from MSMEs, whereby the restructuring of the borrower account has to be implemented by March 31, 2021.

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, the bank said in a statement.

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 free of cost, it added.

BoB said borrowers can also modify the online application or re-submit a new online application, as per their convenience. This will help MSMEs prepare their restructuring proposals by keying in only the most essential data of their past and projected financials, the bank said.

Ram Jass Yadav, Chief General Manager - MSME & Retail Business, BoB, 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.”

 

Published on January 06, 2021

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