Gold Partners

State Bank of India (SBI), the nation’s largest bank, has once again set a new standard in MSME lending with the launch of ‘SME Digital Business Loans’. MSME advances have been identified as the focal point for the Bank’s growth and profitability over the next five years and this innovative product marks a significant leap forward in digitalization by offering SMEs a digital loan journey with an end-to-end sanction turnaround time of up to 45 minutes.

SME Digital Business Loans leverages cutting-edge technology and a robust ecosystem of APIs to streamline the lending process. Utilizing authentic data footprints from sources such as ITR, GST returns and bank statements, the Bank 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 proposition eliminates the need for traditional credit underwriting and lengthy appraisal processes, ushering in a new era of simplicity, speed and accessibility in MSME lending. Notably, for loans up to Rs 50 lakhs, SBI has waived the requirement for financial statements, relying instead on transaction history and GST returns for appraisal.

With a steadfast commitment to supporting the growth and aspirations of millions of MSME units across the country, SBI has been a pioneer in the MSME lending space. The bank’s commitment to promote this segment is evident as it registered 20% credit growth in SME Segment and the outstanding credit to SME borrowers crossed the mark of Rs 4.00 lacs crore. This innovative offering will be readily accessible to customers through all channels of the bank, including it’s website, branches, SME Centres, as well as Internet platforms. Looking ahead, SBI aims to broaden accessibility by extending availability across all its CSP partner touchpoints and via QR codes at outdoor touchpoints in the coming months.

Shri Dinesh Khara, Chairman, SBI, said, “We are committed to set a new industry benchmark with SME Digital Business Loans, underscoring our constant efforts to drive innovation in MSME lending. We have seamlessly integrated innovation with our customer-centric approach to revolutionize the MSME lending landscape, reducing human intervention and enhancing the ease of doing business, particularly for a segment previously characterized by high costs and manual processes. 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.”

Echoing this sentiment, Shri Vinay Tonse, MD – Retail Banking & Operations, SBI emphasized, “We are pioneering the combined potential of the MSME segment of the economy with disruptive digital innovation. With the launch of SME Digital Business Loans, we are offering a unique proposition to both new and existing MSME relationships, ensuring in principle sanction within 45 minutes, ultimately empowering MSMEs to thrive in today’s dynamic business landscape.”

SBI’s unwavering focus on MSMEs extends beyond SME Digital Business Loans, with the bank digitizing the Mudra product and automating the collateral-free process for loans under CGTMSE cover. These initiatives underscore SBI’s commitment to broadening credit access and fostering the growth of MSMEs, driving economic prosperity and resilience.

About State Bank of India

State Bank of India is the largest commercial bank in terms of assets, deposits, branches, customers, and employees. It is also the largest mortgage lender in the country, which has so far fulfilled the home buying dreams of over 30 lakh Indian families. The home loan portfolio of the bank has crossed Rs. 7.25 lakh crore. As of March 2024, the bank has a deposit base of over Rs. 49.16 lakh crore with CASA ratio of 41.11% and advances of more than Rs. 37.67 lakh crore. SBI commands a market share of 26.5% and 19.8% in home loans and auto loans respectively. SBI has the largest network of 22,500+ branches and 63,500+ ATMs / ADWMs in India with close to 83,000 BC outlets. The number of customers using internet banking and mobile banking stand at 125 million and 262 million respectively. With SBI’s digital strategy right on track – the bank witnessed 61% of new savings accounts being opened through the integrated digital and lifestyle platform YONO in Q4FY24. YONO, which has more than 7.40 crore registered users, witnessed 1.3 crore new YONO registrations in Financial year 2024. In terms of digital lending, the bank disbursed pre-approved personal loans worth Rs. 30,344 crores through YONO during FY24. SBI also has the highest number of followers on Facebook and Twitter amongst all banks worldwide.