SBI MSME Loans:
The State Bank of India (SBI), the country’s largest lender, has introduced ‘SME Digital Business Loans’ aimed at sanctioning loans within 45 minutes. This initiative targets the micro, small, and medium enterprise (MSME) sector as a key driver of the bank’s growth and profitability over the next five years.
“This innovative product represents a major advancement in digitalisation, offering SMEs a seamless digital loan journey with an end-to-end sanction turnaround time of up to 45 minutes,” SBI stated. The new process eliminates traditional credit underwriting and lengthy appraisals, streamlining MSME lending with simplicity, speed, and accessibility.
For loans up to Rs 50 lakh, SBI has waived the requirement for financial statements, using transaction history and GST returns for appraisal instead. The bank’s data-driven credit assessment engine, utilizing data from income tax returns, GST returns, and bank statements, can provide sanction decisions within 10 seconds without human intervention.
“We are committed to setting a new industry benchmark with SME Digital Business Loans, underscoring our dedication to innovation in MSME lending,” said Dinesh Khara, chairman of SBI. “Leveraging the rich data footprint of MSME units, we aim to offer the fastest and most intuitive lending process, solidifying our position as the leading MSME lender in the country.”
SBI’s outstanding SME portfolio grew from Rs 2.67 trillion in March 2020 to Rs 4.33 trillion in March 2024, with a significant improvement in asset quality as gross non-performing assets decreased from 9.43% to 3.75% over the same period.
