The State Bank of India (SBI), the country’s largest lender, is aiming for a complete shift with regard to loans to the SME sector of up to Rs 5 crore, from collateral-based assessment to cash flow-based loans backed by credit guarantees to improve access to funds, according to its chairman C S Setty.
This will also help entice borrowers to stay with the lender, said Setty, who took charge as SBI chairman last week.
“If you want to transition from collateral-based lending to cash flow-based credit, which is possible now, there is a need for policy and mindset changes
