SBI enhances instant loan scheme to boost credit access for MSMEs up to Rs 5 crore

The State Bank of India ( SBI ) is planning to improve credit accessibility for the MSME sector by increasing the limit under the instant loan scheme , which currently stands at Rs 5 crore.

The 'MSME Sahaj - End to End Digital Invoice Financing ' offers a streamlined process for loan application, documentation, and disbursement within 15 minutes, without manual intervention.

SBI Chairman C S Setty stated in an interview with PTI, "We have, last year, introduced a business rule engine based, data based assessment of the credit limits up to Rs 5 core. Anybody walking into our MSME branch has to give only their PAN and approval for sourcing GST data, we can give approval in 15-45 minutes."

The bank is focusing on simplifying MSME credit and providing cash flow-based lending backed by the CGTMSE guarantee, which reduces the need for collateral and encourages more people to enter the formal MSME borrowing system. Setty expressed the bank's desire to bring a large number of MSME customers, who currently rely on informal credit, into the banking fold.

Regarding network expansion, SBI plans to open 600 branches across the country in the current financial year, primarily focusing on emerging areas and residential colonies not currently covered by the bank. As of March 2024, SBI has a network of 22,542 branches, 65,000 ATMs, and 85,000 business correspondents, serving approximately 50 crore customers. Setty emphasized the bank's pride in being the banker to every Indian family.

Setty also expressed his commitment to transforming SBI into the best and most valued bank for all stakeholders, including customers, shareholders, and the larger ecosystem. He aims to make SBI the preferred choice for everyone who interacts with the lender.