SBI Plans to Increase Threshold Limit Under Instant Loan Scheme for MSME Sector

The State Bank of India (SBI) is set to enhance the threshold limit under its instant loan scheme for the Micro, Small, and Medium Enterprises (MSME) sector, which currently stands at Rs 5 crore. The scheme, MSME Sahaj – End to End Digital Invoice Financing, offers a seamless process where MSMEs can apply for loans, complete documentation, and receive loan disbursement within 15 minutes without any manual intervention.

SBI Chairman C S Setty highlighted that the bank’s digital loan assessment system uses data-driven evaluations, requiring only a PAN and GST data consent from MSME applicants. This simplifies the lending process, making it cash flow-based and supported by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), reducing the need for collateral.

Setty also noted that many MSMEs are still reliant on informal credit sources, and SBI aims to integrate them into the formal borrowing system. Additionally, SBI plans to open 600 new branches across India in the current financial year, further expanding its already vast network of 22,542 branches, 65,000 ATMs, and 85,000 business correspondents.

Disclaimer: The information provided here is based on publicly available sources and is for general informational purposes only. Please consult relevant financial professionals or institutions before making any lending or borrowing decisions.