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State Bank of India (SBI), the
nation's largest lender, announced that small business lending will be pivotal
for its growth and profitability over the next five years. The bank unveiled
its ‘SME Digital Business Loans’ product, designed to sanction loans within 45
minutes.
"MSME advances have been
identified as the focal point for the bank's growth and profitability over the
next five years," stated an official release.
In a significant move towards
digitalisation, SBI aims to enhance credit accessibility for small businesses
by expanding availability through partner customer service points and QR codes
at outdoor touchpoints in the coming months.
As of March 31, 2024, SBI's SME
portfolio surged by over 20% to Rs 4.33 trillion, with gross non-performing
assets declining to 3.75% from a peak of 9.43% in FY20.
The newly introduced SME Digital
Business Loans were hailed as a ‘significant leap forward’ in digital lending,
offering SMEs a streamlined digital loan journey with a sanction turnaround
time of up to 45 minutes.
"By utilising comprehensive
MSME data, we aim to provide the quickest and most user-friendly lending
process, reinforcing our leadership in MSME lending nationwide," said
Dinesh Khara, Chairman, SBI.
The new platform eliminates
traditional credit underwriting and lengthy appraisal processes, focusing
instead on simplicity, speed, and accessibility in MSME lending. Leveraging
data from sources like ITR, GST returns, and bank statements, SBI has developed
a data-driven credit assessment engine capable of sanctioning decisions within
10 seconds of submission.
For loans up to Rs 5 million, SBI
has waived the requirement for financial statements, relying solely on
transaction history and GST returns for appraisal.
Vinay Tonse, MD -Retail Banking
and Operations, SBI, highlighted that the bank is offering swift in-principle
sanctions within 45 minutes, catering to both new and existing MSME
relationships.
(Source: Live Mint)
SBI is collaborating with multilateral development banks and large multinational banks to address these challenges.
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Read moreSBI aims to enhance credit accessibility for small businesses by expanding availability through partner customer service points and QR codes at outdoor touchpoints in the coming months.
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INDUSTRIAL PRODUCTS FINDER (IPF) is India’s only industrial product portal. Referred to as the ‘Bible’ of the manufacturing sector in India,
INDUSTRIAL PRODUCTS FINDER (IPF) is India’s only industrial product portal. Referred to as the ‘Bible’ of the manufacturing sector in India,
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