State Bank of India has processed SME digital loans of 225,000 accounts up to August 2025 with aggregate credit limits of Rs 74,434 crores since the launch of the SME Digital Business Loans, the bank said on Friday.
This includes the processing of 67,299 MSME Mudra loans amounting to Rs 3,242 crore.
In Fy24, SBI launched SME Digital Business Loans, enabling the MSME entrepreneur to apply online for credit requirements up to Rs 5 crores.
'MSME advances have been identified as the focal point for the Bank's growth and profitability over the next five years and this innovative product marks a significant leap forward in digitalization by offering SMEs a digital loan journey with an end-to-end sanction turnaround time of up to 45 minutes,' the bank said.
By leveraging authentic data sources like income tax returns, GST filings, and bank statements, the bank has built a data-driven credit assessment engine that can deliver sanction decisions in just 10 seconds after the necessary information is submitted -- completely eliminating the need for human involvement, the bank said.
The Digital MSME loan product removes the need for traditional credit checks and lengthy approval processes, making MSME lending faster, simpler, and more accessible. It uses cash flow-based lending, focusing on the borrower's financial discipline, the bank said, adding that for loans up to Rs 50 lakhs, SBI does not require financial statements, relying instead on transaction history and GST returns for evaluation.
As of March 31, 2025, the bank recorded 19 percent credit growth in the SME segment.
-- Anupreksha Jain, Business Standard
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