The State Bank of India (SBI) plans to increase the loan limit under its instant loan scheme from the current Rs 5 crore.
This change aims to provide easier and more sufficient loans to the Micro, Small, and Medium Enterprises (MSME) sector.
The ‘MSME Sahaj’ scheme offers ‘digital invoice’ financing, allowing businesses to apply for loans, submit necessary documents,
and receive approved loans within just 15 minutes, all without any human intervention.
SBI Chairman C S Shetty stated, “We started using data-based assessments for loan limits of up to Rs 5 crore last year.
Anyone visiting our MSME branch only needs to provide their PAN and access to GST data. We can approve loans in 15-45 minutes.”
He emphasized the bank’s efforts to simplify MSME loans, which reduces the need for collateral and encourages more people to join the organized MSME lending system.
Expanding Branch Network and Customer Base
Shetty noted that many MSME customers still rely on loans from the unorganized sector, and SBI aims to bring them into the formal banking system.
Regarding network expansion, he mentioned that SBI plans to open 600 new branches across the country during the current financial year.
As of March 2024, SBI had a total of 22,542 branches. Shetty explained, “We have strong plans for branch expansion, mainly focusing on emerging areas.
Many residential colonies have yet to be reached, and we are planning to open around 600 branches this year.”
In addition to its extensive branch network, SBI serves customers through 65,000 ATMs and 85,000 bank correspondents.
“We serve nearly 50 crore customers, and we are proud to be the banker for every Indian and every Indian family,” Shetty added.
His goal is to transform SBI into the best and most valuable bank, benefiting not just shareholders but all stakeholders.
