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The fully digital platform uses ITR, GST, and bank data for instant, paperless credit decisions, simplifying access for SMEs.State Bank of India (SBI) launched the ‘SME Digital Business Loans’ in 2023-24, enabling MSME entrepreneurs to access online credit facilities of up to ₹5 crore. The digital loan product aims to provide SMEs with a seamless and fully digital loan experience, with an end-to-end approval process completed in just 45 minutes.
SBI’s digital loan leverages advanced technology and a robust API-based ecosystem. Using authentic data sources such as ITR, GST returns, and bank statements, the bank has developed a data-driven credit assessment engine capable of delivering sanction decisions within 10 seconds of submitting the required details, without any human intervention.
As of August 2025, SBI has disbursed loans to a total of 2.25 lakh accounts under this digital MSME loan program, with an aggregate credit limit of ₹74,434 crore. This includes 67,299 MSME Mudra loans amounting to ₹3,242 crore.
The digital product eliminates the need for traditional credit underwriting and lengthy appraisal processes, bringing simplicity, speed, and accessibility to MSME lending. For loans up to ₹50 lakh, financial statements are not required; instead, loan appraisal is based on transaction history and GST returns.
SBI’s contribution to the MSME sector is significant. The bank recorded a 19% credit growth in the SME segment as of 31 March 2025. The product is accessible through all channels, including the bank’s website, branches, SME Centres, and internet platforms. Additionally, assisted digital application support is available for MSME entrepreneurs requiring guidance from branch officials. In the coming months, the service will be further expanded through CSP partner touchpoints and QR code-enabled outdoor access points.
MD (R&DB) commented, “SBI’s focus on the MSME sector goes beyond SME Digital Business Loans. The bank has also digitized the Mudra loans and automated the collateral-free process under CGTMSE. These initiatives reflect SBI’s commitment to expanding credit access and promoting MSME growth, contributing to economic prosperity and resilience.”
