SBI processes SME digital business loans worth ₹74,434 crore since launch

The State Bank of India (SBI) has processed SME digital loans worth ₹74,434 crore across 225,000 accounts up to August 2025 under its SME Digital Business Loans programme, the bank said on Friday.

 

This includes 67,299 MSME Mudra loans amounting to ₹3,242 crore.

 

Launched in FY24, the SME Digital Business Loans platform enables MSME entrepreneurs to apply online for credit requirements of up to ₹5 crore.

 

“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,” SBI said in a statement.

   

AI-driven credit model ensures 10-second sanction

 

By leveraging authentic data sources such as Income Tax Returns (ITR), GST filings, and bank statements, SBI has developed a data-driven credit assessment engine that can deliver sanction decisions in as little as 10 seconds once required information is submitted — completely eliminating the need for human intervention.

 

The bank said the digital MSME loan product removes the need for traditional credit checks and lengthy approval processes, making MSME lending faster, simpler, and more accessible.

 

It uses cash flow-based lending, focusing on the borrower’s financial discipline. For loans up to ₹50 lakh, the bank does not require financial statements, relying instead on transaction history and GST returns for evaluation.

 

SME segment grows 19% year-on-year

 

As of March 31, 2025, the bank reported 19 per cent credit growth in the SME segment, highlighting strong traction in small business lending.

 

SBI said its continued focus on MSME advances aligns with its five-year strategic plan to drive growth, profitability, and financial inclusion through technology-led innovation.