New Delhi, Oct 10
The State Bank of India (SBI) has processed 2.25 lakh SME digital loans till August 2025, with total credit limits of Rs 74,434 crore since the launch of the 'SME Digital Business Loans' scheme in FY24, the public sector lender said on Friday.
This includes the processing of 67,299 MSME Mudra loans amounting to Rs 3,242 crore.
India's largest public sector bank had launched 'SME Digital Business Loans' during 2023-2024, which enables MSME entrepreneurs to apply online for credit requirements up to Rs 5 crore.
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 digitalisation by offering SMEs a digital loan journey with an end-to-end sanction turnaround time of up to 45 minutes, the bank said.
SME Digital Business Loans leverages cutting-edge technology and a robust ecosystem of APIs to streamline the lending process.
Utilising authentic data footprints from sources such as ITR, GST returns and bank statements, the bank said that it 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.
"SBI's unwavering focus on MSMEs extends beyond SME Digital Business Loans, with the bank digitising the Mudra product and automating the collateral-free process for loans under CGTMSE cover," the bank highlighted.
These initiatives underscore the SBI's commitment to broadening credit access and fostering the growth of MSMEs, driving economic prosperity and resilience, the public sector lender added.
The Digital MSME loan product eliminates the need for traditional credit underwriting and lengthy appraisal processes, ushering in a new era of simplicity, speed and accessibility in MSME lending.
The mechanism relies on cash flow-based lending, giving due weightage to financial discipline aspects by the borrower.
For loans up to Rs 50 lakh, the SBI has waived the requirement for financial statements, relying instead on transaction history and GST returns for appraisal, the bank highlighted.
— IANS
Reader Comments
Impressive numbers! 2.25 lakh loans processed shows how digital India is becoming. The 45-minute turnaround time is remarkable compared to traditional loans that used to take weeks. Hope this reaches tier 2 and 3 cities too.
While the initiative is good, I hope the interest rates are reasonable. Many small businesses are still recovering from pandemic losses. SBI should ensure these digital loans don't become debt traps for MSMEs.
The GST-based approval system is brilliant! It rewards businesses who maintain proper financial records and pay taxes regularly. This will encourage more MSMEs to become GST-compliant. Win-win situation! ðŸ‘
₹74,434 crore disbursed to MSMEs is massive! This will create so many jobs and boost local economies. Public sector banks stepping up like this is exactly what India needs for Atmanirbhar Bharat. Jai Hind!
Tried applying but the digital interface could be more user-friendly for non-tech savvy business owners. Maybe SBI should conduct workshops to help small entrepreneurs navigate the process. Otherwise, great initiative!
The 10-second approval decision using AI is revolutionary!
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