SBI develops UPI-based credit scoring for small businesses without GST registration
State Bank of India is building a consent-led underwriting solution using UPI transactions, telecom data and other inputs to assess small merchants lacking GST registration. The bank aims to enable end-to-end digital business loans within a day; no launch date has been disclosed.
What happened
State Bank of India (SBI) · SBI is developing a consent-based underwriting solution using UPI transaction data, telecom data and other inputs to assess
Key facts
- Loans worth Rs 1 lakh crore written using GST and PAN data over the last 18 months
- GST-registered businesses can receive loans within 10 minutes
- SBI aims to provide end-to-end digital loans within a day for businesses without GST registration
What changed
SBI is developing a consent-based underwriting solution using UPI transaction data, telecom data and other inputs to assess creditworthiness of small businesses lacking GST registration, aiming to extend faster digital loans to underserved merchants.
Why this matters
SBI’s consent-led UPI and telecom-data underwriting could give GST-unregistered small retailers faster access to working capital, making clean digital payment trails increasingly valuable for loan eligibility.
What to watch
- SBI announcement of pilot geography, product ticket size, pricing, collateral requirements or launch timetable.
- RBI guidance on use of UPI, telecom and consented alternative data in credit underwriting.
- Evidence that UPI merchant transaction data can be accessed consistently through consent-led rails or account-aggregator workflows.
- Default, fraud and repeat-borrowing performance from SBI's initial cohorts.
- Growth in SBI merchant QR base, current-account onboarding and digital business-loan disbursals.