The State Bank of India (SBI) has processed Rs 744.34 billion in digital loans for small and medium enterprises (SMEs) across 225,000 accounts under its SME Digital Business Loans programme up to August 2025, the bank announced on Friday. This total includes 67,299 MSME Mudra loans amounting to Rs 32.42 billion. Launched in FY24, the SME Digital Business Loans platform allows MSME entrepreneurs to apply online for credit requirements of up to Rs 50 million. In a statement, SBI said, “MSME advances have been identified as a key growth and profitability driver for the next five years. This innovative digital product represents a major step in the bank’s digital transformation, offering SMEs a fully automated loan process with an end-to-end sanction turnaround time of up to 45 minutes.” The platform leverages verified data sources such as Income Tax Returns (ITR), GST filings, and bank statements, using a data-driven credit assessment engine that can deliver sanction decisions in as little as 10 seconds after submission of required information — eliminating the need for manual intervention. According to the bank, the digital MSME loan product streamlines credit access by removing traditional paperwork and time-consuming verification steps, making small business lending faster, simpler, and more accessible. It adopts a cash flow-based lending approach, focusing on the borrower’s financial discipline. For loans up to Rs 5 million, the bank does not require formal financial statements, relying instead on transaction histories and GST returns for evaluation. As of 31 March 2025, SBI reported 19 per cent growth in SME credit, underscoring strong momentum in small business financing. SBI added that its continued focus on MSME lending aligns with its five-year strategic plan to drive growth, profitability, and financial inclusion through technology-led innovation.