SBI Accelerates SME Lending with Digital Loans, Processes 2.25 Lakh Applications

State Bank of India (SBI) has emerged as a frontrunner in digital MSME lending, processing 2.25 lakh SME Digital loans with a total credit exposure of Rs 74,434 crore as of August 2025. Among these, 67,299 Mudra loans amounting to Rs 3,242 crore have been disbursed, reflecting the bank’s focus on enhancing credit accessibility for small and medium enterprises.

Launched during 2023-24, the SME Digital Business Loans initiative allows MSME entrepreneurs to apply for credit of up to Rs 5 crore entirely online. The product eliminates conventional credit appraisal processes and relies on cash flow-based lending, assessing borrowers on financial discipline, GST returns and transaction history rather than requiring detailed financial statements for loans up to Rs 50 lakh.

SBI has leveraged cutting-edge technology and API-driven ecosystems to deliver a truly data-driven experience. The bank’s automated credit assessment engine can issue loan sanctions in as little as 10 seconds after submission, ensuring end-to-end turnaround times of up to 45 minutes without human intervention.

The bank’s focus on MSME financing has yielded tangible results, with 19% credit growth in the SME segment as of March 31, 2025. The digital loans are accessible across multiple channels, including SBI’s website, branches, SME Centres, Internet platforms and soon via CSP partner touchpoints and QR codes at outdoor locations.

SBI’s MD (R&DB) highlighted that the bank’s digital push extends beyond SME Digital Business Loans. “We are also digitising the Mudra product and automating collateral-free loans under the CGTMSE cover,” he said. These initiatives underscore SBI’s commitment to expanding credit access, supporting MSME growth and driving broader economic resilience.

With its digital-first approach, SBI is transforming MSME lending, making credit faster, simpler, and more accessible while reinforcing its position as a key enabler of India’s entrepreneurial ecosystem.