Indian Bank has signed an agreement with the Small Industries Development Bank of India (SIDBI) to utilize the latter’s asset restructuring module for MSME borrowers. Micro, Small, and Medium Enterprises (MSMEs) have been finding it difficult to keep books of accounts, preparation of financial statements, and submission financial projections for producing the same to banks or financial institution for getting credit finance or restructuring their loans based on their calculations and revision in the working capital cycle. For this purpose, MSMEs have to meet the third parties, which involves more time and cost.
Small Industries Development Bank of India (SIDBI) had introduced Asset Restructuring Module for Micro, Small and Medium Enterprises (MSMEs) – Do it Yourself (ARM-MSME DIY) – for supporting the MSME in the country. The module has enabled MSMEs to prepare their restructuring proposals or financial viability assessments by themselves and submit them to the bank through email or in hard copy. This module can be used free of cost by MSMEs. Also at selected centers, SIDBI is appointing councilors to lead the MSMEs in the usage of this module.
Indian Bank signed an agreement with SIDBI to help its borrowers to use SIDBI’s module. Indian Bank’s branches or zones would also guide the MSMEs for using this module to present the restructuring proposals to the Bank. Besides, Indian Bank has also launched an online training program called MSME Prerana, which is to train the MSMEs in basic accounting, maintenance of books of accounts, and government/bank schemes meant for MSMEs. It is a tool to help Micro, Small and Medium Enterprises (MSME) to take benefit from Reserve Bank of India’s (RBI) MSME restructuring regulations.
Small Industries Development Bank of India (SIDBI) offers a wide range of finance allowances to the Micro, Small, and Medium Enterprises (MSME) industry. Loan amounts ranged from Rs.10 lakh to Rs.3 crores and repayment period up to 10 years. These loans are provided at attractive interest rates and help to provide essential capital for the growth and expansion of MSMEs. Loans above Rs.1 crores will be available without any collateral securities and loan subsidies are also provided.