SBI Enhances Instant Loan Scheme, Aiming to Support MSME Sector Growth

In a significant move to bolster credit access for the Micro, Small, and Medium Enterprises (MSME) sector, the State Bank of India (SBI) is set to raise the threshold under its instant loan scheme from the current limit of ₹5 crore.

This initiative, part of SBI's 'MSME Sahaj - End to End Digital Invoice Financing,' aims to streamline the loan application process, allowing businesses to secure funds within 15 minutes without manual intervention.

SBI Chairman C. S. Setty highlighted the bank's commitment to simplifying MSME credit, stating, "Last year, we introduced a business rule engine-based assessment of credit limits up to ₹5 crore. Customers only need to provide their PAN and approval to source GST data to receive loan approval within 15-45 minutes."

This approach emphasizes cash flow-based lending backed by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) guarantee, reducing the need for collateral and encouraging more MSMEs to enter the formal borrowing system.

Setty expressed concern about the significant number of MSME customers relying on informal credit sources and emphasized SBI's goal of integrating these businesses into the formal banking fold.

Regarding network expansion, SBI plans to open 600 new branches across India in the current financial year, building on its existing network of 22,542 branches as of March 2024.

"Our branch expansion will focus on emerging areas, especially residential colonies that remain underserved," Setty added.

In addition to its extensive branch network, SBI serves its customers through 65,000 ATMs and 85,000 business correspondents, reaching approximately 500 million customers nationwide.

"We take pride in being the banker to every Indian, and importantly, to every Indian family," Setty noted.

He concluded by stating his commitment to transforming SBI into the most valued bank for all stakeholders, including customers, shareholders, and society at large, ensuring that everyone sees SBI as the best bank to work with.

Also Read: SBI Increases MCLR, Borrowers to Face Higher Loan Costs