Big Boost for MSMEs! SBI Set to Raise Loan Limit Under Instant Loan Scheme with No Collateral Required

State Bank of India (SBI) is working on increasing the loan limit under its instant loan scheme for the MSME (Micro, Small, and Medium Enterprises) sector. Currently, the loan limit is ₹5 crore, but SBI aims to raise it soon. The scheme, known as ‘MSME Sahaj – End to End Digital Invoice Financing,’ allows MSMEs to apply for loans, complete paperwork, and receive the approved loan within 15 minutes, all digitally without any manual steps.

C S Setty, SBI Chairman, explained that last year the bank introduced a system that assesses credit limits up to ₹5 crore based on data. Customers only need to provide their PAN and approve access to their GST data to get approval in 15-45 minutes.

Setty also highlighted that SBI is focusing on simplifying the credit process for MSMEs, making lending more accessible based on cash flow and backed by the CGTMSE guarantee, reducing the need for collateral. This could help bring more MSMEs into the formal banking system, reducing their dependence on informal credit sources.

Expanding SBI’s Branch Network

SBI is also planning to open 600 new branches across India during the current financial year. The bank currently has 22,542 branches as of March 2024. These new branches will mainly be in emerging areas, including residential colonies not yet covered by the bank.

In addition to its branch network, SBI reaches its customers through 65,000 ATMs and 85,000 business correspondents across the country.

With 50 crore customers, SBI is proud to serve as the banker to nearly every Indian family, Setty said. He aims to transform SBI into the best and most valued bank, not only for shareholders but for every stakeholder, including customers, society, and institutions.

Setty added that his goal is for everyone involved with SBI to feel that it is the best bank to work with.