SBI to Boost MSME Credit with Enhanced Instant Loan Threshold and Network Expansion

New Delhi, Oct 14 (KNN) In a bid to strengthen credit access for Micro, Small, and Medium Enterprises (MSMEs), the State Bank of India (SBI) is planning to raise the loan threshold under its instant loan scheme from the current limit of Rs 5 crore.

The move aims to provide faster and hassle-free credit to MSMEs and encourage them to shift from informal credit sources to formal banking channels.

SBI’s innovative lending platform, 'MSME Sahaj - End-to-End Digital Invoice Financing,' is at the forefront of this initiative.

It offers a seamless digital process, enabling MSME customers to complete everything from loan applications to documentation and disbursements within 15 minutes, without manual intervention.

“We introduced a data-based credit assessment system last year, which enables quick approvals based on PAN and GST data. Credit up to Rs 5 crore can be approved within 15 to 45 minutes,” SBI Chairman C.S. Setty said in an interview with PTI.

He added that simplifying MSME lending and making it cash-flow-based—with the backing of CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises)—is a key focus.

This shift reduces the need for traditional collateral, thus opening doors for a broader segment of MSMEs to access formal credit. “We still see a significant portion of MSMEs relying on informal credit channels. We aim to bring them into the formal banking system through these simplified processes,” Setty remarked.

SBI is also committed to expanding its physical presence across India. The bank plans to open 600 new branches this financial year, focusing on emerging regions and underserved residential areas.

As of March 2024, SBI had 22,542 branches, 65,000 ATMs, and 85,000 business correspondents, serving more than 50 crore customers across the country.

“Our goal is to extend our services to more areas, particularly residential colonies currently outside our network. The expansion aligns with our aim of being the banker to every Indian household,” Setty said.

The Chairman emphasised that SBI’s mission is not only to deliver strong returns to shareholders but also to be recognized as a bank that adds value for all stakeholders, including customers, shareholders, and the broader social and economic ecosystem.

“Our vision is to transform SBI into the most valued and trusted bank for everyone who interacts with us, ensuring we remain relevant and impactful across all sectors,” Setty concluded.

With these initiatives, SBI aims to solidify its position as the backbone of India’s financial ecosystem while fostering the growth of the MSME sector.

(KNN Bureau)