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)