Bank of Baroda's new SME loan factory is based on an assemblyline concept

Loan channels open up for SMEs

Even as small and medium enterprises are fast becoming the buzzwords for the banking and finance sector, the public sector Bank of Baroda has fired the first salvo by starting a new business delivery model - SME Loan Factory.

The model which primarily aims at cutting down the turnaround time for sanctioning financial assistance to SME players, is based on the assembly line concept in a manufacturing set up where the flow of work is defined, removing all bottlenecks.

Interestingly the bank chose to launch the new model in Pune as "the city has always encouraged entrepreneurship and produced some of the most renowned industries in the countries," said BOB chairman Anil Khandelwal.

SME Loan Factory has a central processing hub which will ensure speedy decision making, especially the appraisals. A team of relationship managers will be stationed at different branches spread over the city to reach out to customers.

These relationship managers will market the different financial products of the bank and help facilitate speedy completion of pre-sanction formalities in a hassle-free manner.

Said Khandelwal, "The SME segment is the backbone of India's economy, as they account for 45 per cent of the country's industrial output and nearly 50 per cent of exports. Also, the segment employs almost 45 per cent of the country's industrial work force."