Small Industries Development Bank of India (SIDBI) has announced that all of its Direct Lending operations will be completely digitised which will help to reach out larger number of MSMEs owing to the fall in overall turnaround time in the process of credit delivery.
The principal financial institution for the MSME sector said that the end-to-end digitisation will enable MSMEs to have a seamless experience while availing funding from SIDBI as the entire process flow will be digital.
The bank’s under-writing process has improved under the digitisation drive through the use of superior risk management tools.
From dependence on dated information furnished by the borrower (such as annual reports), tools have been put in place which auto analyse up to date information available in various public databases
With the Digital Document Execution of documents, borrower will not have to physically visit SIDBI’s offices for signing of the documents which will help in quick completion documentation formalities.
SIDBI also announced a structured initiative called ‘Voices from the Field” to gather feedback from the major client groups of SIDBI - which comprises MSMEs, NBFCs and Micro Finance Institutions regarding key challenges being faced by them and understanding their expectations from the MSME stakeholders serving the MSMEs.
The feedback shall be obtained by SIDBI officials through personal visits and discussions with members of the target group and findings shall be analysed and compiled in the form of a report and will be released by mid May 2022 and shall act as a guide for Policymakers for the sector.