On Tuesday, the State Bank of India (SBI), the country’s largest public sector bank, unveiled its new ‘SME Digital Business Loans’ initiative.
Streamlined Lending with Advanced Technology
The SME Digital Business Loans program utilizes cutting-edge technology and a robust API ecosystem to simplify the lending process.
According to SBI, the loan approval system uses authentic data from sources such as ITR, GST returns, and bank statements.
This data-driven credit assessment engine can provide sanction decisions within just 10 seconds after the required details are submitted, all without human intervention.
This innovative approach eliminates the need for traditional credit underwriting and lengthy appraisal processes, making MSME lending simpler, faster, and more accessible.
For loans up to Rs 50 lakh, SBI has waived the requirement for financial statements, instead relying on transaction history and GST returns for appraisal.
Significant Growth and Accessibility
SBI has identified MSME advances as a key area for growth and profitability over the next five years.
This new product aims to revolutionize the MSME lending landscape by offering a fully digital loan journey with a turnaround time of up to 45 minutes.
The bank reported a 20% credit growth in the SME segment, with outstanding credit to SME borrowers surpassing Rs 4.00 lakh crore.
The new digital loan offering will be accessible through all of SBI’s channels, including its website, branches, SME Centers, and Internet platforms.
In the coming months, SBI plans to extend the availability of these loans through its CSP partner touchpoints and via QR codes at various outdoor locations.
Commitment to Innovation in MSME Lending
Dinesh Khara, Chairman of SBI, emphasized the bank’s commitment to setting new industry standards with the SME Digital Business Loans.
He highlighted the integration of innovation with a customer-centric approach, aiming to reduce human intervention and enhance the ease of doing business.
This initiative leverages the rich data footprint of MSME units to provide a fast and intuitive lending process, reinforcing SBI’s position as the leading MSME lender in India.
By launching SME Digital Business Loans, SBI is driving innovation in MSME lending, significantly simplifying and accelerating the loan process for small and medium-sized enterprises.
