To ensure seamless credit access for MSMEs, the State Bank of India (SBI) is planning to raise the threshold of its instant loan scheme beyond the current limit of Rs 5 crore. This move is a part of the bank’s strategy to offer faster, easier, and more accessible financing solutions to small and medium enterprises. The “MSME Sahaj – End to End Digital Invoice Financing” platform offers businesses a fully digital experience, from loan application to documentation and loan disbursement, all within 15 minutes.
SBI’s goal is to provide quick credit approval with minimal manual intervention, further promoting business growth in this sector.
Digital Tools Simplify Credit Process
SBI is focusing on simplifying MSME credit by leveraging data-driven digital tools. By utilizing systems like the business rule engine and assessing credit limits based on GST data and PAN details, the bank can now approve loans within 15 to 45 minutes. This cash-flow-based lending approach, backed by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), significantly reduces the need for collateral, making it easier for many MSMEs to access formal credit channels. According to SBI Chairman C.S. Setty, this effort is part of the bank’s initiative to bring more MSMEs into the formal banking system, moving away from informal credit sources.
Branch Network Expansion to Reach New Areas
In addition to boosting digital lending, SBI is also focused on expanding its physical presence. The bank has announced plans to open 600 new branches across emerging areas, particularly in residential colonies that are not currently served by SBI. This expansion is aimed at improving the accessibility of banking services for a broader range of customers. With its existing network of 65,000 ATMs and 85,000 business correspondents, SBI is already one of the most accessible banks in India, serving around 50 crore customers.
A Commitment to Inclusive Banking
SBI’s Chairman C.S. Setty emphasized the bank’s commitment to being a trusted financial partner for all stakeholders, including customers, shareholders, and the larger ecosystem. The bank takes pride in being referred to as “the banker to every Indian family” and aims to continue improving its services for a diverse range of customers. By streamlining MSME credit and expanding its branch network, SBI is positioning itself as a key player in India’s financial inclusion efforts.
