SBI Launches SME Digital Business Loans Programme

On June 12, 2024, the State Bank of India (SBI) launched a new SME digital business loans programme. The bank will use income tax and GST returns and bank statement data to assess the creditworthiness of micro, small, and medium enterprises (MSMEs) and sanction loans in 10 seconds after submitting the required details without human intervention.

For loans up to ₹50 lakh, SBI has eliminated the need for financial statements, opting instead to use transaction history and GST returns for evaluation.

Speaking on this, the chairman of SBI, Dinesh Khara, said, “We have seamlessly integrated innovation with our customer-centric approach to revolutionise the MSME lending landscape, reducing human intervention and enhancing the ease of doing business, particularly for a segment previously characterised 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.”

The bank has identified MSME advances as the key driver for its growth and profitability over the next five years. This new digital loan product is expected to reduce the end-to-end sanction turnaround time to 45 minutes.

The bank has recorded a 20% growth in the SME segment, with outstanding credit to SME borrowers exceeding ₹4 lakh crore by the end of March 2024.

This new product is available through all bank channels, including the website, branches, SME centres, and internet platforms. In the coming months, SBI will also roll out this product at partner touchpoints and through QR codes at outdoor locations.

The MD of retail banking and operations at SBI, Vinay Tonse, stated that the bank was combining the potential of the MSME segment of the economy with disruptive digital innovation.

About State Bank of India

State Bank of India is a Fortune 500 company. It is an Indian multinational public sector banking and financial services institution headquartered in Mumbai. With over 200 years of history, it is the largest and oldest bank in India.

On June 12, 2024, the share price of State Bank of India Ltd opened at ₹837.00, touching the day’s high at ₹845.55, as of 2:33 PM on the NSE.

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