State Bank of India (SBI), has launched a new SME Digital Business Loans through which the bank will use data from sources such as income tax and GST returns and bank statements, for credit assessment of micro small and medium enterprises (MSMEs) and sanction loans within just ten seconds after submitting the required details, without any human intervention.
For loans up to Rs 50 lakhs, SBI has waived the requirement for financial statements, relying instead on transaction history and GST returns for appraisal.
“We have seamlessly integrated innovation with our customer-centric approach to revolutionize the MSME lending landscape, reducing human intervention and enhancing the ease of doing business, particularly for a segment previously characterized by high costs and manual processes. By leveraging the rich data footprint of MSME units in the ecosystem, we aim to provide the fastest and most intuitive lending process, further solidifying our position as the leading MSME lender in the country,” SBI chairman Dinesh Khara said.
MSME advances have been identified as the focal point for the bank’s growth and profitability over the next five years, the bank said and with this new digital loan product, the end-to-end sanction turnaround time of is expected to reduce to 45 minutes.
The bank has registered a 20% growth in the SME segment and the outstanding credit to SME borrowers crossed Rs 4 lakh crore at the end of March 2024.
The new product can be accessed through all channels of the bank, including its website, branches, SME Centres, as well as internet platforms. SBI will also introduce this product to partner touchpoints and via QR codes at outdoor touchpoints in the coming months.
Vinay Tonse, MD – retail banking & operations, SBI emphasized, said the bank is combining potential of the MSME segment of the economy with disruptive digital innovation.
“With the launch of SME Digital Business Loans, we are offering a unique proposition to both new and existing MSME relationships, ensuring in principle sanction within 45 minutes, ultimately empowering MSMEs to thrive in today’s dynamic business landscape,” Tonse said.
