Coimbatore railway suppliers hit by loan delays over digital MoD filing

Railway equipment suppliers operating in Coimbatore are experiencing significant delays in obtaining bank loans as lenders navigate recently implemented online registration systems for Memoranda of Deposit (MoDs), according to industry sources in the region.

The transition to digital MoD filing has created administrative complexities that are extending loan processing timelines beyond historical norms. Banks and financial institutions are reportedly requiring extended verification periods to authenticate documents submitted through the new online platforms, creating a lag between application submission and fund disbursement for manufacturing units dependent on regular working capital cycles.

The delays are proving particularly disruptive for small and medium-sized enterprises in the railway components and equipment sector, which rely on steady credit access to maintain production schedules and meet supply commitments. Industry representatives have indicated that the extended processing periods are affecting inventory management and operational planning at multiple facilities across the industrial corridor.

Banks have attributed the slowdown to the need for robust compliance procedures around the digitized MoD system, though the industry continues seeking expedited resolution from both lenders and regulatory authorities. The situation underscores ongoing challenges in aligning technological modernization with operational efficiency in India's banking sector.