SBI Launches Quick Disbursal Loan For MSMEs
For loans up to Rs 50 lakh, SBI has waived the requirement for financial statements, relying instead on transaction history and GST returns.
The State Bank of India has launched 'SME Digital Business Loans' to provide quick loan disbursements to micro, small, and medium enterprises. The product offers end-to-end sanction with a turnaround time of up to 45 minutes, according to a press release on Tuesday.
The new product leverages technology and the application-programming-interfaces ecosystem to streamline the lending process without relying on traditional credit underwriting processes. For loans up to Rs 50 lakh, SBI has waived the requirement for financial statements, relying instead on transaction history and GST returns, the bank said.
"We have seamlessly integrated innovation with our customer-centric approach to revolutionise the MSME lending landscape, reducing human intervention and enhancing the ease of doing business, particularly for a segment previously characterised by high costs and manual processes," Dinesh Khara, chairperson of the bank, said. "By leveraging the rich data footprint of MSME units in the ecosystem, we aim to provide the fastest and most intuitive lending process."
The country's largest lender reported a 24% rise in its net profit to Rs 20,698 crore for the quarter ended March, aided by strong loan demand.
"The rise in other income is a reflection of our growing loan book," Khara said in the post-earnings media briefing. "Our fee income improved on better loan application fees and other components. We are seeing growth in forex income and cross-selling income, and we hope to sustain this rise."
SBI's net interest margin stood at 3.47% in the March quarter, up from 3.34% in the previous quarter. The bank's domestic advances grew 16% year-on-year to Rs 32.3 lakh crore.
Growth in corporate advances outpaced the rise in retail advances, with corporate loans rising 16% year-on-year to Rs 4.33 lakh crore during the quarter under review.
Retail advances, however, gained 15% year-on-year to Rs 13.5 lakh crore. Credit growth has been robust across segments, Khara said. Growth in unsecured retail loans, however, moderated.
