SBI Expands Instant Loan Threshold for MSMEs

State Bank of India (SBI) plans to raise the threshold for its MSME instant loan scheme from Rs 5 crore. The MSME Sahaj initiative offers digital financing solutions, reducing collateral requirements. SBI aims to open 600 new branches to enhance credit accessibility and bring informal MSME borrowers into the formal banking system.

The State Bank of India is set to enhance its support for the MSME sector by increasing the threshold limit under its instant loan scheme, previously capped at Rs 5 crore. This initiative is part of SBI's broader efforts to streamline credit availability and reduce reliance on collateral for MSMEs.

The 'MSME Sahaj - End to End Digital Invoice Financing' program offers an efficient application process, utilizing data-driven assessment to expedite loan approval within just 15-45 minutes, as explained by SBI Chairman C S Setty. This approach invites more informal credit users into formal banking channels.

Looking ahead, SBI plans an aggressive network expansion, intending to establish 600 additional branches this year, particularly in emerging areas. The bank currently serves 50 crore customers through its extensive network, which includes 65,000 ATMs and 85,000 business correspondents, reflecting its commitment to being the banker for every Indian.

(With inputs from agencies.)