State Bank of India Launches SME Digital Business Loans for Faster Loan Sanctions

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The State Bank of India (SBI), the largest bank in the country, has introduced a new product called “SME Digital Business Loans” with the goal of approving loans within 45 minutes. SBI has identified the micro, small, and medium enterprise (MSME) sector as a key area for the bank’s growth and profitability over the next five years.

This new product represents a significant step forward in digitalization, providing SMEs with a streamlined loan process that can be completed entirely online within 45 minutes. By eliminating the need for traditional credit underwriting and lengthy appraisal processes, SBI aims to simplify and expedite the lending process for MSMEs.

One noteworthy feature of the SME Digital Business Loans is that for loans up to Rs 50 lakh, SBI has waived the requirement for financial statements and instead relies on transaction history and GST returns for appraisal. This allows for a faster and more accessible loan assessment.

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SBI has developed a data-driven credit assessment engine that utilizes authentic data from sources such as income tax returns, GST returns, and bank statements. This enables the bank to make sanction decisions within just 10 seconds of receiving the required details, without any human intervention.

Dinesh Khara, the Chairman of SBI, expressed the bank’s commitment to driving innovation in MSME lending and its goal of setting a new industry benchmark with the SME Digital Business Loans. By leveraging the rich data footprint of MSME units in the ecosystem, SBI aims to provide the fastest and most intuitive lending process, solidifying its position as the leading MSME lender in the country.

Over the past four years, SBI’s SME book has grown from Rs 2.67 trillion in March 2020 to Rs 4.33 trillion in March 2024. Additionally, the asset quality of this book has improved, with gross non-performing assets declining from 9.43% in March 2020 to 3.75% in March 2024.

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