(MENAFN- KNN India)
New Delhi, Oct 18 (KNN) CSB Bank, a leading private sector bank, has launched a new loan product, SME Turbo Loan, to offer quick and seamless credit access to small and medium enterprises (SMEs).
The loan provides in-principle sanction for credit amounts up to Rs 5 crore, with facilities such as overdrafts, term loans, and trade finance.
The bank aims to streamline the lending process by leveraging a scorecard-based approach for faster underwriting.
Shyam Mani, Group Head – SME Business at CSB Bank, highlighted the product's innovative features:“The Turbo Loan product simplifies the way SMEs access credit by offering instant in-principle sanctions, based on a simplified credit assessment, which is unique in the market.”
The loan product utilizes a digital scorecard to assess borrowers, integrating multiple data sources such as credit bureau information, GST filings, and financial performance.
This automation enables quicker loan approvals and better caters to the growing credit demand among creditworthy small businesses in India.
“We collaborated with industry experts to develop the scorecard, ensuring that the process is efficient, transparent, and suited to the needs of today's businesses,” said Mani.
In addition to this new offering, CSB Bank provides a variety of credit solutions to SMEs, including term loans, working capital loans, export finance, bill discounting, and more.
The timing of CSB Bank's latest product comes as the MSME sector faces challenges amid forecasts of slower credit growth.
According to a May report by Crisil, the overall credit growth in the MSME segment is expected to moderate to 15 per cent in the current fiscal, down from 19 per cent in FY 2024.
The slowdown reflects broader trends in bank lending this year, as the segment accounts for about 16 per cent of total credit.
The Reserve Bank of India (RBI) is also gearing up to launch a new Unified Lending Interface (ULI), a platform inspired by UPI, aimed at boosting credit access to MSMEs and agricultural borrowers.
This initiative will further integrate borrowers' financial and non-financial data to facilitate quicker loan disbursements across banks.
With SME Turbo Loan, CSB Bank aims to empower SMEs with transparent, fast-track credit solutions, helping them navigate an evolving economic environment.
(KNN Bureau)
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