State Bank of India (SBI) has launched “MSME -Sahaj”, a web-based digital business loans solution for MSMEs’ (micro, small and medium enterprises) invoice financing.

With the new web-based solution, the Bank’s customers can avail finance against their Goods and Service Tax (GST) registered sales invoices of up to ₹1 lakh in less than 15 minutes, according to a statement by India’s largest bank.

The purpose of the product is to provide “on tap” short-term credit for working capital needs to MSME units who are part of the GST regime, it added.

SBI said MSME Sahaj is a data-driven invoice financing credit assessment engine which will provide end-to-end solution -- from applying the loan, documentation and disbursement of the sanctioned loan -- within 15 minutes, without any manual intervention.

The closure of the loan on due date is also automated and is carried out by the system itself.

The product is based on a machine learning model and uses authentic data footprints from GST Identification Number, Customers’ Bank Statements and CIC (credit information company) data base etc.

The Bank said the product will be made available through digital mode on Yono to its existing customers and will address the liquidity issues of MSMEs to unlock the cash flows instantly.

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.”

Vinay Tonse, MD - Retail Banking & Operations, SBI, said the new product will offer a unique proposition to the Bank’s 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 B.

Related Topics