‘MSME Sahaj – End to End Digital Invoice Financing’, provides solutions that include loan application and documentation besides disbursal of sanctioned loan in under 15 minutes sans human intervention at any end.
Instant loan scheme: The country’s largest lender SBI is likely to discuss raising the current limit of its instant loan scheme from Rs 5 crore, an effort towards easy and sufficient access of credit to the MSME sector.
The ‘MSME Sahaj – End to End Digital Invoice Financing’ platform permits end-to-end services ranging from raising loan applications, in-documentation, and disbursement of loans in 15 minutes, which happen sans any human interface.
SBI Chairman On Credit Limits:
SBI Chairman C S Setty said in an interview with PTI, “We have rolled out a business rule engine-based, data-based assessment of credit limits up to Rs 5 crores in the last year. Anybody walking into our MSME branch has to give only their PAN and approval for sourcing GST data, we can give approval in 15-45 minutes.”.
He said simplification of the MSME credit is something the bank is focusing on and making lending cash-flow-based, backed by the CGTMSE guarantee.
He added this reduces the need for collateral, that will enable a lot of people to come into the formal MSME borrowing system. “We still have a large number of MSME customers accessing the informal credit. We would like to bring them to the banking fold,” he said.
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600 New Branches By 2024
On network expansion, Setty mentioned, “SBI would open 600 new branches throughout the country in the current financial year. As of March 2024, SBI had an existing national network of 22,542 branches.”.
“We have strong branch expansion plans. this would be mainly focused on emerging areas. A lot of residential colonies are not covered by us. Around 600 branches is something we are planning in the current year,” he said.
In addition to a huge branch network, SBI reaches out to its customers through 65,000 ATMs and 85,000 business correspondents. “We serve about 50 crore customers and we take pride in saying that we are the banker to every Indian, and, more importantly, to every Indian family,” he said.
He said it would be his effort to transform SBI into the best and the most valued bank not only from a shareholder’s point of view but for every stakeholder who deals with the lender.
“It could be my customers, it could be our shareholders, it could be the larger ecosystem — the society, the institutional framework — all the stakeholders should be saying that this is the best bank to deal with,” he added.