New Delhi: The State Bank of India (SBI) will sanction loans in 45 minutes. India’s largest bank will focus on disbursing loans to small businesses. To make these loans more lucrative, the bank is planning to distribute loans to SMEs (small and medium enterprises) in 45 minutes. This new product by SBI is named “SME Digital Business Loans”.
To increase profitability and growth, SBI is doubling down on small business lending. In an official statement, SBI said that “MSME loan will be the focal point for the bank’s growth and profitability over the next 5 years.”
Extending loan accessibility
SBI aims to increase loan accessibility for small businesses. It is planning to extend availability across all partner customer service point touchpoints and via QR codes. A customer can interact with the product via an employee, a website, an advertisement, or an app. Anytime a customer interacts with the bank product, it is called a customer touchpoint. For example, if a customer sees a loan advertisement on social media, that will be called a customer touchpoint.
Faster loan disbursal
SBI will be offering this loan online with an end-to-end sanction turnaround time of up to 45 minutes. Under this scheme, a loan of Rs 50 lakh can be raised by MSMEs without financial statements. SBI will not ask for financial statements for the loan. Instead, the borrower’s transaction history and GST returns for appraisal will be checked. SBI said that the newly launched proposition eliminates the need for traditional credit underwriting and lengthy appraisal processes, adding that it offers simplicity, speed, and accessibility in MSME lending.
SBI chairman Dinesh Khara said, “By leveraging the rich data footprint of MSME units in the ecosystem, we aim to provide the fastest and most intuitive lending process, further solidifying our position as the leading MSME lender in the country.”
SBI plans to increase loan accessibility for small businesses and is planning to extend availability across all partner customer service point touchpoints and via QR codes. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
