SBI Expands Digital Lending for Small Businesses Amid Growing Demand

State Bank of India (SBI) has sanctioned around 20,000 loans of Rs 10 lakh to Rs 50 lakh for small businesses under a digital lending pilot. Pleased with the success, SBI is increasing loan amounts to Rs 5 crore. The bank emphasizes financial inclusion, addressing challenges, and partnerships with governments and fintechs.

PTI | Mumbai | Updated: 14-06-2024 17:52 IST | Created: 14-06-2024 17:52 IST
SBI Expands Digital Lending for Small Businesses Amid Growing Demand
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The State Bank of India (SBI) has sanctioned approximately 20,000 loans, ranging from Rs 10 lakh to Rs 50 lakh, aimed at small businesses as part of its digital lending pilot initiated in December, a senior official revealed on Friday.

Delighted with the pilot's success—under which customers can secure loans from the comfort of their homes—the country's largest lender is now scaling the loan amounts up to Rs 5 crore, according to Deputy Managing Director Surendra Rana at a banking conference hosted by the IMC.

"We rolled out the Rs 10-50 lakh model in December and are pleased to report that around 20,000 loans have already been sanctioned through this process, operating seamlessly. Now, we are escalating it to Rs 5 crore," he stated. Customers initiate their journey by scanning a QR code, completing some approvals, and receiving a sanctioned amount within a maximum of five days through the use of data repositories, he noted. The announcement follows the bank's recent declaration that small business lending will be a central focus for growth and profits over the coming five years.

Rana also mentioned that banks have been collaborating with governments, non-profits, and fintech companies to deepen outreach to small business credit needs. Despite considerable progress in financial inclusion, he highlighted ongoing challenges like diverse geography, limited financial literacy, and social constraints. He noted that SBI services 16 crore of the 52 crore Prime Minister Jan Dhan Yojana accounts opened since 2014.

Further expanding on financial inclusion, he said it now involves more than just opening bank accounts—it includes providing credit, insurance cover, etc. Rana also commended the RBI's efforts in financial inclusion, specifically the regulatory sandbox for testing future solutions.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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