SBI To Use UPI Data For Unsecured Loans To Non-GST Businesses
· Business · Business Standard
State Bank of India plans to use Unified Payments Interface transaction data to extend credit to small businesses that lack Goods and Services Tax registration. The initiative aims to streamline the lending process by assessing borrower cash flows directly through digital payment records. Small enterprises often struggle to secure formal credit due to the absence of traditional collateral and tax paperwork. By integrating UPI metrics, India's largest lender intends to tap into an underserved segment of micro-entrepreneurs. The program marks a significant shift toward cash-flow-based underwriting for informal enterprises.
Why it matters
This move broadens credit access for millions of small Indian merchants and informal businesses that lack formal tax documentation, potentially lowering barriers to institutional finance.
Read the original report — Business Standard
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