SBI Transforms MSME Lending with Revolutionary Digital Loan Solutions

In a groundbreaking move, the State Bank of India (SBI) has processed a staggering 2.25 lakh SME Digital loans by August 2025, totalling an impressive Rs 74,434 crore. Among these, 67,299 MSME Mudra loans worth Rs 3,242 crore were also processed, as detailed in a recent release. This digital initiative signifies a pivotal shift towards a streamlined lending system, phasing out traditional credit underwriting and protracted appraisal procedures while making MSME loans more accessible and efficient.

The 'SME Digital Business Loans,' launched during 2023-2024, empowers MSME entrepreneurs to seek loans up to Rs 5 crore online, marking a profound evolution in the bank's digitalisation strategy. This leverages cutting-edge technology and a vast API ecosystem to simplify loan procedures significantly. The digital loan journey features an end-to-end approval turnaround time of just 45 minutes, with decisions delivered in an astounding 10 seconds after data submission, entirely eliminating human intervention.

With a 19% credit growth in the SME sector as of March 2025, SBI continues to enhance customer accessibility through multiple channels, including internet platforms and partner touchpoints. These endeavors are poised to bolster SME credit access, driving economic prosperity. The bank's focus on digitizing MSME offerings underscores its commitment to nurturing growth and financial resilience in this pivotal sector.

(With inputs from agencies.)