SBI aims for cashflow-based lending to SMEs, says chairman C S Setty

Its SME portfolio rose by 19.87 per cent year-on-year (Y-o-Y) to Rs 4.43 trillion at the end of June 2024

The State Bank of India (SBI), the country’s largest lender, is aiming for a complete shift with regard to loans to the SME sector of up to Rs 5 crore, from collateral-based assessment to cash flow-based loans backed by credit guarantees to improve access to funds, according to its chairman C S Setty.

This will also help entice borrowers to stay with the lender, said Setty, who took charge as SBI chairman last week.

“If you want to transition from collateral-based lending to cash flow-based credit, which is possible now, there is a need for policy and