Technology for MSMEs: After Indian Bank and Central Bank of India, MSME-focused Small Industries Development Bank of India (SIDBI) has expanded its web-based asset restructuring module for MSME customers of Bank of Baroda as well. A memorandum of understanding was signed between SIDBI and the country’s third-largest public sector bank – Bank of Baroda on Wednesday. The asset restructuring module for MSMEs (ARM-MSME) is an automated portal for businesses to self-create their loan restructuring proposal with financial viability projections by iteration of multiple scenarios and relief options.
The MSME borrowers of a particular bank can e-submit the application without any charge and can also modify the online application or re-submit a new online application. “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,” Bank of Baroda said in a statement. The platform “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,” said Dr. Ram Jass Yadav, Chief General Manager – MSME & Retail Business, Bank of Baroda.
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The RBI had extended debt restructuring for MSMEs in August till March 31, 2021, for accounts classified as standard with the lender as of March 1, 2020. The documents needed, on the portal, for the proposal may vary as per banks’ internal guidelines even as enterprises would have to upload soft copies of the signed application form and other documents on the portal before submission to complete the restructuring proposal in addition to financial projections. Restructuring application form or request letter and signed by proprietor, partners, authorised director, etc., are among the required documents. Also, the last two-year balance sheets of the units along with Income Tax/GST returns, etc., sales during the current FY up to the date of submission of application and provisional balance sheet, and more would also be required.