Fast lending process by SBI using data footprint of MSME in ecosystem

State Bank of India (SBI) has launched a new SME digital business loans programme where India’s largest bank will use data from income tax and GST returns and bank statements for credit assessment of micro, small and medium enterprises (MSMEs) and sanction loans in 10 seconds after submitting the required details without any human intervention.

For loans up to 50 lakh, 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 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,” said SBI chairman Dinesh Khara.

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 this new digital loan product is expected to reduce the end-to-end sanction turnaround time to 45 minutes.

The bank has registered a 20% growth in the SME segment, and the outstanding credit to SME borrowers crossed 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 through QR codes at outdoor touchpoints in the coming months.

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