The digital transformation in India’s financial sector is enabling faster and broader access to credit, particularly for small and medium enterprises (SMEs), stated State Bank of India (SBI) Chairman CS Shetty at the Global Fintech Fest 2025 on Wednesday. “Today, I am very proud to say that an SME customer with a loan requirement of up to Rs 5 crore can get approval within 25 to 26 minutes. This has been made possible essentially because of the humongous digital landscape we have created in India,” he said at the event, according to news agency ANI.Â
Faster credit delivery
Shetty also noted that while the usage of financial products like insurance is increasing, credit delivery through business channels still requires improvement. To address this, State Bank of India is utilising extensive data including UPI transactions, GST, income tax, and account statements, to ensure quicker and more reliable credit decisions for SMEs.
Financial inclusion efforts
Addressing financial inclusion, he highlighted the importance of account usage beyond mere account opening.
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He explained: “We have opened almost 150 million Jan Dhan accounts, which start with zero balance. Today, 99.5 per cent of these accounts are funded, with an average balance of about Rs 4,000. This demonstrates that even small amounts are being saved and used.”
He also added that these accounts witness around 3.5 million transactions daily, with women account holders constituting 56 per cent of these accounts.
Empowering Account Holders
He highlighted the transformative journey of basic accounts into fully operational ones, where account holders begin with zero balance, engage in productive activities, start small businesses and gradually move to current accounts. This transition shows how banking services are becoming integral to daily life.
Digital and Inclusive Approach
By leveraging technology and partnerships with fintech companies, SBI aims to ensure that banking services not only reach people but are actively used to improve financial security and entrepreneurship across India.
Millions of Indians are now covered under life insurance, accidental insurance, and pension schemes, reflecting the growing usage and reach of financial products.
Here are answers to a few frequently asked questions about the development:Â
How long does it take for SMEs to get loan approval from SBI?
SMEs with loan requirements of up to Rs 5 crore can get approval within 25-26 minutes, thanks to SBI’s digital landscape.
What data does SBI use to check creditworthiness for SME loans?
SBI uses extensive data, including UPI transactions, GST, income tax, and account statements, to ensure quicker and more reliable credit decisions for SMEs.
How many Jan Dhan accounts has SBI opened?
SBI has opened almost 150 million Jan Dhan accounts, which start with zero balance.
What percentage of Jan Dhan accounts are funded?
99.5 per cent of Jan Dhan accounts are funded, with an average balance of about Rs 4,000.
