On Monday, State Bank of India (SBI) unveiled MSME Sahaj, an innovative online business loan solution targeted at Micro, Small, and Medium Enterprises (MSMEs). This initiative allows MSMEs to access credit against their Goods and Services Tax (GST) registered sales invoices, with a maximum limit of Rs 1 lakh. SBI has assured that the entire process, from applying for the loan to documentation and disbursement, will take less than 15 minutes, all without any manual intervention.
Automated Closure and Underwriting Process
SBI has also implemented automated closure of the loan on the due date, streamlining the process for MSMEs. The underwriting process for MSME Sahaj will rely on a variety of data points such as GSTIN, bank statements, and the CIC (credit information company) database, utilizing a machine learning model for efficient assessment.
Vision and Customer-Centric Approach
Dinesh Khara, Chairman of SBI, emphasized that MSME Sahaj is designed to provide MSMEs with faster and more accessible finance through a digital platform, enabling a self-initiated end-to-end journey. This initiative reflects SBI’s commitment to integrating innovation and a customer-centric approach in order to transform the MSME lending landscape, emphasizing reduced human intervention and improved ease of doing business.
Target Audience and Accessibility
Primarily addressing the ‘on-tap’ short-term credit needs of micro-enterprises operating under the GST regime, MSME Sahaj caters to their working capital requirements. Existing MSME customers of SBI seeking immediate access to their cash flows can conveniently utilize the service through SBI Yono. Moreover, MSME Sahaj is specifically designed for sole proprietorship non-credit customers of State Bank of India who hold a satisfactory current account with the bank.
Technological Advancements and Recent Developments
It’s noteworthy that MSME Sahaj follows closely on the heels of SBI’s introduction of a 45-minute digital loan facility for MSMEs. Leveraging authentic data sources such as ITR, GST returns, and bank statements, the new solution is equipped to underwrite loans swiftly. SBI proudly announced the development of a data-driven credit assessment engine capable of providing sanction decisions within an impressive 10 seconds after the submission of required details, all without any human intervention.