Private sector CSB Bank on Thursday launched its new loan offering for SMEs – SME Turbo Loan to provide quick in-principle sanction for credit up to Rs 5 crore. With the overdraft, term loan and trade facilities, the new loan facility will underwrite borrowers based on their ‘digital scorecard’.
Shyam Mani, Group Head – SME Business said the multi-featured loan product is built to offer faster, easier and more transparent credit solutions to empower MSMEs to reach their full potential.
“The Turbo Loan product simplifies the way SMEs access credit, by offering instant in-principle sanction, based on a simplified credit assessment, which is unique in the market,” said Mani.
A scorecard-based lending aims to effectively integrate data from various sources including bureau information, GST filing, turnover data, financial information, etc., to help automate the credit underwriting process. This allows lenders with quicker loan approval cycles to cater to the increasing credit demand by a growing number of creditworthy small businesses in India.
Mani said the bank has developed the scorecard in collaboration with industry experts with wider expertise.
CSB Bank already offers multiple credit solutions for SMEs viz., term loans, working capital loans, export finance, letter of credit, bill discounting and more.
Importantly, to boost credit to MSME and agri borrowers, the Reserve Bank of India (RBI) is soon expected to launch a new Unified Lending Interface (ULI) platform for UPI-like lending based on borrower’s financial and non-financial data.
Meanwhile, bank credit growth to MSMEs in the current fiscal is likely to slow down from the previous year amid moderate growth expected in overall bank credit, Crisil had said in May this year. The growth in the MSME segment (which is around 16 per cent of overall credit) is estimated at around 15 per cent in the current FY, down from a robust around 19 per cent in fiscal 2024.