State Bank of India
One of the most reputed banking organizations of India, State Bank of India (SBI), also wants to position itself as a preferred banking destination for Indian SMEs. In order to achieve this status, SBI has adopted a detailed and focused approach towards SMEs.
In an exclusive interaction with SupportBiz, R Venkatachalam, Deputy Managing Director, Chief Credit & Risk Officer, SBI, said, “SMEs are an integral and very important element for our bank. We understand the unique issues that SMEs usually face in their day-to-day business operations. We are pioneers in the field of SME financing in India. As a bank, we are playing a critical role in the overall growth and development of the SME sector. The bank has developed a wide array of products and services to cater to the evolving needs of the SME sector. It has over 1.3 million SME loan accounts, with a total exposure of Rs 1.63 lakh crore as of 2012. Under the Micro and Small Enterprises segment, we have provided credit of around Rs. 78,170 crore as of December 2011, constituting 52 per cent of its total SME advances.”
SBI has around 600 specialized SME branches that are focused towards enabling an effective platform for SME lending. Single-point contact through dedicated relationship managers has been put in place for medium as well as small enterprises. Centralized processing cells have been created for quick turnaround time in the sanctioning and disbursal of loans of up to Rs 1 crore.
For inclusive growth, a special scheme called SME Collateral-Free Loan for the MSME segment has been designed. Under this scheme, finance will be provided to MSMEs under CGTMSE guarantee coverage, with liberalized terms, up to a credit limit of Rs 1 crore.
Some MSME schemes from SBI:
· Credit-linked capital subsidy scheme for technology up-gradation of micro and small industries
· Credit-linked capital subsidy scheme (food processing)
· Technology up-gradation fund scheme (Tufs) for textile and jute industry
· Industrial infrastructure up-gradation scheme
· SME easy loan against property
· Free cash pick-up facility
· Collateral-free loans for micro & small enterprises of up to Rs 1 crore with CGTMSE guarantee coverage
· SME Insta Deposit card
· Dealer financing at the interest rate of 9.7 per cent per annum.
· Schemes for supply chain
· Electronic vendor financing scheme
Electronic dealer financing scheme