State Bank of India (SBI), the nation’s largest bank, has launched ‘SME Digital Business Loans,’ setting a new standard in MSME lending. Focused on MSME growth for the next five years, this product offers SMEs a fully digital loan process with a sanction turnaround time of up to 45 minutes.
SME Digital Business Loans leverage advanced technology and a robust API ecosystem to streamline the lending process. By using data from ITR, GST returns, and bank statements, SBI’s credit assessment engine provides sanction decisions within 10 seconds, eliminating traditional credit underwriting. For loans up to Rs 50 lakhs, financial statements are waived, relying on transaction history and GST returns.
SBI, a pioneer in MSME lending, has achieved 20% credit growth in the SME segment, with outstanding credit surpassing Rs 4 lakh crore. SME Digital Business Loans will be accessible via the bank’s website, branches, SME Centres, and Internet platforms, with plans to expand to CSP partner touchpoints and QR codes at outdoor locations soon.
Shri Dinesh Khara, Chairman, SBI, stated, “We are committed to setting a new industry benchmark with SME Digital Business Loans, underscoring our efforts to drive innovation in MSME lending. By reducing human intervention and leveraging the rich data footprint of MSME units, we aim to provide the fastest and most intuitive lending process, solidifying our position as the leading MSME lender in the country.”
Shri Vinay Tonse, MD – Retail Banking & Operations, SBI, added, “We are pioneering the combined potential of the MSME segment with disruptive digital innovation. The launch of SME Digital Business Loans offers a unique proposition to both new and existing MSME relationships, ensuring in-principle sanction within 45 minutes, empowering MSMEs to thrive in today’s dynamic business landscape.”
Beyond SME Digital Business Loans, SBI is digitizing the Mudra product and automating the collateral-free process for loans under CGTMSE cover. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is jointly set up by Ministry of Micro, Small & Medium Enterprises (MSME), Government of India and Small Industries Development Bank of India (SIDBI) to catalyse flow of institutional credit to Micro & Small Enterprises (MSEs).
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