SBI ‘SME Digital Business Loans’, Revolutionizing MSME Lending Landscape with Loan sanction turnaround within 45 minutes

· 2.25 lakh SME Digital loan accounts processed up to August 2025 with aggregate credit limits of ₹74,434 crores

· 67,299 MSME Mudra loans processed amounting ₹3,242 crores

Bengaluru, October 10, 2025: State Bank of India (SBI), had launched ‘SME Digital Business Loans’ during 2023-2024 which enables the MSME entrepreneur to apply online for credit requirements up to ₹5 crores. MSME advances have been identified as the focal point for the Bank’s growth and profitability over the next five years and this innovative product marks a significant leap forward in digitalization by offering SMEs a digital loan journey with an end-to-end sanction turnaround time of up to 45 minutes.

SME Digital Business Loans leverages cutting-edge technology and a robust ecosystem of APIs to streamline the lending process. Utilizing authentic data footprints from sources such as ITR, GST returns and bank statements, the Bank has developed a data-driven credit assessment engine capable of providing sanction decisions within a remarkable 10 seconds after submitting the required details, without any human intervention.

Bank has processed a total number of SME Digital loans to the tune of 2.25 lac accounts up to August 2025 with aggregate credit limits of ₹74,434 crores since the launch of the Digital journey. This includes the processing of 67,299 MSME Mudra loans amounting to ₹3,242 crores.

The Digital MSME loan product eliminates the need for traditional credit underwriting and lengthy appraisal processes, ushering in a new era of simplicity, speed and accessibility in MSME lending. It relies on cash flow-based lending giving due weightage to financial discipline aspects by the borrowe₹ Notably, for loans up to Rs 50 lakhs, SBI has waived the requirement for financial statements, relying instead on transaction history and GST returns for appraisal.

With a steadfast commitment to supporting the growth and aspirations of millions of MSME units across the country, SBI has been a pioneer in the MSME lending space. The bank’s commitment to promote this segment is evident as it registered 19% credit growth in SME Segment as on 31st March 2025. This innovative offering will be readily accessible to customers through all channels of the bank, including its website, branches, SME Centres, as well as Internet platforms. This product also has the provision of an assisted journey for all such MSME entrepreneurs who need assistance from the branch officials in applying digitally for such loans. Looking ahead, SBI aims to broaden its accessibility by extending availability across all its CSP partner touchpoints and via QR codes at outdoor touchpoints in the coming months.

Comments from MD(R&DB): “SBI’s unwavering focus on MSMEs extends beyond SME Digital Business Loans, with the bank digitizing the Mudra product and automating the collateral-free process for loans under CGTMSE cover. These initiatives underscore SBI’s commitment to broadening credit access and fostering the growth of MSMEs, driving economic prosperity and resilience.”