SBI launches ‘SME Digital Business Loans’, to sanction loans to MSME sectors

The country’s largest lender, State Bank of India (SBI), has launched the ‘SME Digital Business Loans’ for sanctioning the loans in 45 minutes. The bank has indicated the micro, small and medium enterprise (MSME) line of business as the centric focus for the bank’s growth and profitability over the next five years.

“This innovative product marks a significant leap forward in digitalisation by offering SMEs a digital loan journey with an end-to-end sanction turnaround time of up to 45 minutes,” SBI said in a statement.

Utilising authentic data footprints from sources such as income tax returns (ITR), GST returns, and bank statements, SBI has developed a data-driven credit assessment engine capable of providing sanction decisions within a remarkable 10 seconds after submitting the required details, without any human intervention, the statement said.

“We are committed to setting a new industry benchmark with SME Digital Business Loans, underscoring our constant efforts to drive innovation in MSME lending,” Dinesh Khara, chairman, SBI, said.

“By leveraging the rich data footprint of MSME units in the ecosystem, we aim to provide the fastest and most intuitive lending process, further solidifying our position as the leading MSME lender in the country,” Khara said.

This implementation would easy to go away the need for traditional credit underwriting and long general appraisal processes, leveraging in a domain of simplicity, speed, and accessibility in MSME lending.