Bank of Baroda signs MoU with Gujarat govt to enable speedy loans to MSME sector

Bank of Baroda signs MoU with Gujarat govt to enable speedy loans to MSME sector

Bank of Baroda recently entered into a partnership with the Gujarat government to enable credit inflow to the MSME sector for several entrepreneurial projects in underdeveloped areas. The MoU signed on December 20, under the Gujarat Single Window Clearance Act 2017 & Ordinance Number 1 of 2019 dated October 24, 2019, will facilitate greenfield projects, startups, women entrepreneurs and more from such areas to avail the credit facility.

Customers will need to register their request via the Gujarat government’s single window portal, which will then be submitted to Bank of Baroda for review and processing.

To this end, the bank has also set up a dedicated central processing cell in Mumbai and Gujarat, which will handle the leads and requests on a priority basis, in order to ensure that the in-principle approval/decision is made available within 30 days from the date of submission.

Executive director of Bank of Baroda Vikramaditya Singh Khichi, commented on the partnership, saying, “The MoU with the Gujarat government is a step forward for MSME entrepreneurs. For a state known for its entrepreneurial spirit, this initiative will provide banking solutions and financial support to generate employment opportunities. It is a matter of pride for Bank of Baroda to be part of this initiative and to contribute to the national objectives.”

Vijay Rupani, the chief minister of Gujarat, said, “The state government is committed to support the MSME sector in the state for economic development and this is a major initiative taken by the government whereby exemption has been provided to the entrepreneurs from certain approvals and inspections, before establishment of units. This MoU would speed up the process of credit offtake as well as industrial development.”

The bank has stated that it will process the applications on a real-time basis, and the in-principle approval/decision of the lead will be conveyed through the portal, the district level nodal agency, or the state level nodal agency, to facilitate seamless operation.

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