Photo Credit: Ruby Sharma
The country’s largest state-run bank SBI has introduced ‘MSME Sahaj’, a web-based digital business loan solution that allows MSMEs to avail finance against their GST registered sales invoices of up to ~1 lakh in less than 15 minutes.
The product’s goal is to provide ‘on tap’ short-term loans for working capital needs to GST-registered Micro SME firms.
Dinesh Kumar Khara, Chairman, SBI, said, “MSME Sahaj is crafted with the vision of providing MSME units faster and easier finance using digital mode with self-initiated end to end journey.”
Key points
Loan disbursal time: The entire process from applying for the loan to documentation and disbursement of the sanctioned amount is completed within 15 minutes without any manual intervention.
Purpose: The purpose is to provide short-term credit for working capital needs to micro SME units who are part of the GST regime and unlock their cash flows instantly.
Eligibility: The product is meant for existing micro SME units who are part of the GST regime and have a satisfactory current account with SBI. It caters to both credit and non-credit customers of SBI.
Loan Closure: The closure of the loan on the due date is also automated and carried out by the system itself.
Underwriting: The underwriting is based on data footprints from GSTIN, customer’s bank statements, CIC database etc. using machine learning models.
Delivery channel: The product is available through the digital mode on SBI’s YONO app to existing customers.
Future outlook
This initiative follows SBI’s recent efforts to integrate innovation into MSME financing, enhancing ease of business operations through reduced human intervention and accelerated loan processing. The launch of MSME Sahaj solidifies SBI’s position as the leading MSME lender in the country.
Vinay Tonse, MD, Retail Banking & Operations, SBI said, “MSME Sahaj-Digital Business Loans for Invoice Financing will offer a proposition to our existing Micro SME units who are part of the GST regime to get immediate on tap short term credit for working capital requirement through digital mode on SBI’s Yono app.”
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