Mumbai: State Bank of India (SBI) is set to increase its loan cap under the instant loan scheme for MSMEs, currently at Rs 5 crore. The move aims to make it easier for small businesses to secure credit through its digital platform, MSME Sahaj, which offers quick, 15-minute approvals without manual intervention.
SBI Chairman C S Setty shared that the bank’s approach focuses on cash-flow-based lending, backed by a government guarantee to reduce the need for collateral. This could bring more MSMEs into formal banking, as many small businesses still rely on informal credit sources.
In addition to boosting loan limits, SBI plans to open 600 new branches this year, targeting emerging areas and residential neighborhoods. The expansion comes as SBI aims to serve more customers with its extensive network of over 22,500 branches, 65,000 ATMs, and 85,000 business correspondents.
Setty emphasized SBI’s role in reaching nearly 50 crore customers, aiming to strengthen its presence and impact across the country. He noted that the bank is working to become a trusted partner not just for its customers but for all its stakeholders, including shareholders and the broader community.
Discussion about this post