Updated: Aug 27, 2019
According to media reports, Mr Rajnish Kumar, Chairman of SBI, said that lending platforms could help improve capability of banks to provide credit to small businesses.
Here are a few key messages from the Chairman:
1. SBI had to invest heavily on digital transformation to keep pace with the level of change in the environment.
2. SBI is able to acquire 25,000-30,000 customers every day using its digital platform, Yono.
3. SBI is disbursing almost 2,000 digitally pre-approved loans over the Yono platform.
4. The ‘PSB loan in 59 minutes’ platform can provide loans of Rs 1 lakh to Rs 5 crore by analysing cash flow using data from GST, income tax returns and bank statements.
5. Over 95% of small and medium enterprises (SMEs)could be covered by the platform, as a Rs 5-crore loan could support a Rs 25-crore turnover.
6. Mr Kumar mentioned that the awareness about Digital Lending Platforms is yet to reach most of the potential borrowers.