State Bank of India’s proposed solution is aimed at assessing the creditworthiness of small businesses through their UPI data. The bank expects eligible borrowers to receive digital loans within a day, linking the assessment approach with a faster lending process.

The key feature is that GST registration would not be a requirement for businesses assessed through this route. For small-business owners without that registration, the proposal could offer a way to have their creditworthiness evaluated using UPI data. It does not mean that every applicant would qualify for a loan.

The solution is still being developed. The supplied report does not state a launch date, loan amounts, interest rates or repayment periods. It also does not specify the eligibility conditions or explain how the bank would analyse UPI data when deciding whether to lend.

The one-day lending expectation applies to eligible borrowers, rather than being a promise of approval for all small businesses. Further details on the application process and assessment requirements have not been stated, so the information available does not yet show how customers would access the proposed facility.