SBI to Expand Instant Loan Scheme for MSMEs, Eyes 600 New Branches by Year End Customers only need to provide their PAN and approve the use of GST data to receive loan approval in as little as 15 to 45 minutes.
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In a bid to improve credit access for Micro, Small, and Medium Enterprises (MSMEs), the State Bank of India (SBI) plans to increase the limit under its instant loan scheme from the existing INR 5 crore. SBI's "MSME Sahaj – End to End Digital Invoice Financing" aims to simplify the loan process, ensuring that MSMEs can quickly access funds. The scheme allows businesses to apply for loans, complete documentation and receive disbursements within 15 minutes—without manual intervention.
"We have, last year, introduced a business rule engine-based, data-based assessment of credit limits up to INR 5 crore," SBI Chairman Challa Sreenivasulu Setty shared in an interview with PTI. He added that customers only need to provide their PAN and approve the use of GST data to receive loan approval in as little as 15 to 45 minutes.
The simplification of credit access for MSMEs is a key focus area for SBI, with the bank making lending cash flow-based, backed by the credit guarantee fund trust for micro and small enterprises (CGTMSE). This reduces the need for collateral, encouraging more businesses to enter the formal borrowing system. "We still have a large number of MSME customers accessing informal credit. We would like to bring them into the banking fold," emphasized Setty.
To further strengthen its presence, SBI is planning to open 600 new branches across India during the current financial year. The bank already operates a vast network, with 22,542 branches as of March 2024. These new branches will primarily focus on emerging areas, including underserved residential colonies. "We have strong branch expansion plans, this would be mainly focused on emerging areas. A lot of residential colonies are not covered by us" Setty said, underscoring the importance of broadening the bank's reach.
SBI also connects with its customers through 65,000 ATMs and 85,000 business correspondents. "We serve about 50 crore customers and take pride in being the banker to every Indian, and more importantly, every Indian family," Setty remarked. He expressed his ambition to make SBI the most valued bank, not just for shareholders but for all stakeholders. "It could be my customers, shareholders, or the larger ecosystem — all stakeholders should feel this is the best bank to deal with," he concluded.
With these initiatives, SBI continues to play a critical role in boosting the formal economy and empowering MSMEs across India.
