SBI plans to enhance threshold limit under instant loan scheme for MSME sector

New Delhi: Public Sector Lender State Bank of India is planning to enhance the threshold under the instant loan scheme from the existing Rs 5 crore. 'MSME Sahaj - End to End Digital Invoice Financing', provides solutions ranging from applying for the loan, documentation, and disbursement of the sanctioned loan within 15 minutes, without any manual intervention, ensuring easy and adequate credit availability to the MSME sector.

"We have, last year, introduced a business rule engine based, data-based assessment of the credit limits up to Rs 5 core. 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," SBI Chairman C S Setty said.

Simplification of the MSME credit is something that the bank is emphasizing and making lending cash flow based backed by the CGTMSE guarantee, he said. This reduces the need for collateral, which would enable a lot of people to come into the formal MSME borrowing system, he said.

"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.

As far as network expansion is concerned, Setty said SBI is planning to open 600 branches across the country in the current financial year.

"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 added.

"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 also said it will be his endeavour to transform SBI into the best and the most valued bank not only from a shareholder point of view but for every stakeholder who deals with the lender.