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SBI Launches 45-Minute Digital Loan Facility for MSMEs

The State Bank of India (SBI), India’s largest public sector bank, has recently launched ‘SME Digital Business Loans’, a revolutionary concept aiming to fast-track the loan approval process for Micro, Small, and Medium Enterprises (MSMEs). The new solution will be aimed at approving loan requests in less than 45 minutes, which will increase the availability of financial assistance to MSMEs.

Fast and Efficient Approaches to Loan Processing

Building on actual data like ITR, GST returns, and bank statements, the new solution uses a credit assessment model. Sanction decisions can be given in 10 seconds after entering the necessary information using this engine, without any input from a human. The rapid assessment is supposed to help reduce time and make the process of approval of the loan as easy as possible.

Promoting the Growth of MSMEs as a Strategic Business Priority

SBI Chairman Dinesh Khara said that SBI is particularly focused on the MSME segment and it will be one of the major areas of growth and profitability in the next five years. This is exemplified by the new loan facility that allows MSMEs to access up to Rs 50 lakh without submitting financial statements. However, in the case of loan appraisal, the bank will rely on the transaction history and GST returns which will minimize the paperwork required from the small business owners.

Expanding Accessibility and Channels

The credit facility under the new scheme is available for eligible MSMEs online and offline, namely through the branches of SBI, the bank’s official website, and SME Centres. To make it more convenient, SBI aims to launch the loan application through all the CSP partner touchpoints and through QR codes at outside places in the next couple of months.

Further Automation of MSME Credit Products

Besides the SME Digital Business Loans, SBI has also introduced the Mudra loan product and made the collateral-free loan process under the CGTMSE cover more automated.


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