Limit For 15-Minute SME Loan From SBI Can Be Extended From Rs 5 Crore


Mohul Ghosh

Mohul Ghosh

Oct 14, 2024


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.

Limit For 15-Minute SME Loan From SBI Can Be Extended From Rs 5 Crore

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.


Mohul Ghosh
Mohul Ghosh
  • 1791 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online