SBI uses AI to underwrite nearly ₹1 lakh crore in MSME loans
SBI said it used artificial intelligence to underwrite about ₹1 lakh crore in MSME loans during 2025-26, including loans up to ₹5 crore each.
GS3The HinduGS3Artificial Intelligence (AI) in bankingMSME lendingState Bank of India (SBI)
What happened: SBI reported AI-assisted underwriting for MSME loans
State Bank of India reported the use of artificial intelligence in MSME loan underwriting. SBI said AI underwriting covered about ₹1 lakh crore in MSME loans during 2025-26, with each loan capped at ₹5 crore.
SBI management also stated that SBI can underwrite up to ₹1 lakh crore within the next 12 months. SBI’s management further stated that the underwriting volume includes both new-to-bank customers and existing customers. SBI made these statements at SBI’s annual FIBAC event.
Background: Why underwriting matters in MSME credit
MSMEs need timely credit for working capital and investments. Lenders use underwriting to assess credit risk and decide whether a borrower qualifies for a loan and at what terms. Underwriting steps typically involve evaluating borrower repayment capacity, available financial information, documentation, and risk controls.
What changed now: SBI communicated scale, loan-size limit, and time horizon
