State Bank of India (SBI) has introduced MSME Sahaj, a new initiative designed to meet the working capital needs of Micro, Small and Medium Enterprises (MSMEs). This web-based solution aims to facilitate fast and easy invoice financing for MSMEs.

Interpretation of MSME Sahaj utility

According to the bank, MSME Sahaj can quickly approve loans for GST-registered invoices. 1 lakh in less than 15 minutes using a completely digital process. The program also aims to help MSMEs who have not availed credit facilities from SBI earlier, provided they are sole proprietors with a satisfactory current account. Existing SBI MSME customers can easily access MSME Sahaj through the Yono SBI mobile app.

The product uses machine learning models and authentic data from sources like GSTIN, customer bank statements, and CIC database. The product aims to offer easily accessible short-term credit for working capital requirements to micro-SME units operating under the GST regime. It will be digitally accessible to existing SBI customers through Uno, effectively addressing liquidity challenges for MSMEs and enabling access to immediate cash flow.

The introduction of MSME Sahaj marks a significant development for both SBI and the MSME lending sector in India. Here’s why:

  • Access to quick capital: Conventional loan procedures can be slow and cumbersome for MSMEs. With MSME Sahaj’s 15-minute approval window, cash flow for MSMEs can improve significantly, enabling them to seize opportunities and address urgent needs faster.
  • Targeting the underprivileged: SBI’s focus on non-credit customers is aimed at increasing financial inclusion for MSMEs, providing special benefits to new businesses or those yet to establish a strong credit history.
  • Use of digital adoption: Using the Yono SBI platform ensures that the entire process is simple and accessible to MSMEs, in line with the growing trend of digital adoption in financial services.

By prioritizing these elements, the bank is setting a new benchmark in MSME lending. If successful, MSME Sahaj has the potential to serve as a blueprint for other lenders, reinforcing the important role of the MSME sector as a driver of the Indian economy.

Big boost to MSME sector

Emphasizing MSME Sahaj’s focus on uncredited consumers highlights its potential to significantly widen financial inclusion, an initiative that has the potential to change the landscape for small businesses with limited credit histories. Because of this, they face challenges in getting conventional loans.

Dinesh Khara, Chairman, SBIsaid, “SBI is committed to setting new industry standards by introducing digital solutions in SME business lending, underlining our continued efforts to innovate in MSME lending. Emphasizing the same, MSME Sahaj is developed with a vision to provide fast and easy finance to MSME units using a digital mode in a self-initiated end-to-end journey.MSME Sahaj in the MSME lending universe The launch of MSME Sahaj is the result of our effort to revolutionize, reduce human intervention and integrate innovation and customer-centric approach to increase ease of doing business To provide intuitive lending solutions, further cementing our position as the leading MSME lender in the country.”

Echoing this sentiment, Vinay Tunis, MD – Retail Banking & Operations, SBI Emphasized, “To cater to the growth of the MSME segment, the Bank is leveraging the combined potential of the MSME segment of the economy with disruptive digital innovation. The ‘MSME Sahaj – Digital Business Loans for Invoice Financing’ scheme.” We will offer a unique proposition to existing micro-SME units that are part of the GST regime to get instant ‘on-tap’ short-term credit for their working capital requirement through digital mode On IK Uno B.”

The introduction of this digital product represents a significant development in the digital lending landscape, in line with the country’s focus on empowering MSMEs over the next five years.

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