State Bank of India (SBI) has introduced ‘SME Digital Business Loans’ aimed at providing swift loan approvals for small and medium enterprises (SMEs) with a processing time of up to 45 minutes. This service utilizes technology and an ecosystem of APIs to streamline the lending process, leveraging data from income tax returns, GST returns, and bank statements. The bank’s data-driven credit assessment engine can deliver sanction decisions within 10 seconds without human intervention.
For loans up to Rs 50 lakhs, SBI has waived the requirement for financial statements, relying instead on transaction history and GST returns. This new loan facility will be available through all SBI channels, including its website, branches, SME Centres, and online platforms. SBI plans to extend this service to its CSP partner touchpoints and via QR codes at outdoor touchpoints soon.
This innovation integrates technology with a customer-centric approach to transform MSME lending by reducing costs and manual processes. The initiative is part of SBI’s strategy to focus on MSME growth and profitability over the next five years,.
SBI has also digitized the Mudra loan product for micro units requiring loans up to Rs10 lakh and automated the collateral-free loan process under the CGTMSE cover.
The SME Digital Business Loans offer a unique proposition to both new and existing MSME clients, ensuring rapid sanction and empowering them in the current business environment.