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Collateral free loans to SMEs seamless digital services for small businesses
September 15, 2023
With the festival season kicking in, the country’s largest lender, State Bank of India (SBI) is planning to launch a series of festive offers for its customers, especially for Small and Medium Enterprises (SMEs). Besides some lucrative home loan discounts, the bank is also planning to provide collateral-free loans for SMEs.
Alok Kumar Choudhary, Managing Director of the State Bank of India, shared the details of the bank’s plans with Zee Business, assuring that customers will be satisfied with the upcoming offers.
Speaking on what the bank is planning to offer for SMEs to make the credit line easier, Choudhary said that the bank will work towards extending the Central government’s various schemes to the customers. It will also help customers to engage with the services in a convenient way through digital services. The lender is planning to roll out collateral-fee loans for SMEs this festive season, according to Choudhary.
The owners of small businesses can also avail credit facilities through seamless digital processes.
He further added that the process of ‘underwriting’ or the process through which the lender verifies one’s income, assets, debt, and property details before approving a loan application, will be made more convenient and objective.
“SBI will work toward developing its business rule engine. This will help to extend loans to customers based on the other attributes, instead of collateral. Customers will be ranked on the basis of these attributes,” he added.
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