SIB GST Power Business Loan–Fully Automated MSME business loan sanction using GSTR-based STP process Qorus-Infosys Finacle Banking Innovation Awards 2025

SIB GST Power Business Loan is a transformative digital initiative enabling instant MSME loan sanctions through easy integration with GSTR data. Built on STP model, it leverages API connectivity with Core Banking System, automated credit assessments, and predictive analytics to offer instant loan approvals without manual intervention. This end-to-end paperless solution ensures faster credit access for MSME sector, boosting their operations and in-turn our customer satisfaction. This initiative reflects a strategic collaboration between business, IT, credit, data science teams, and external vendors, aligning with the bank’s vision of digital first lending and financial empowerment of the MSME businesses. CONCEPT & OBJECTIVES SIB GST Power Business Loan is a fully digital MSME loan sourcing initiative that leverages GSTR data to assess borrower eligibility. The core concept is to provide instant loan sanctions which would otherwise take days with manual processing. Main objectives are wider MSME reach, faster credit delivery, paperless processing and lending based on data insights. REASON BEHIND Traditional loan processing was time-consuming and dependent on physical documentation, leading to delayed disbursals. Recognizing the growing potential of utilizing GST Return statement, we identified an opportunity to simplify and accelerate loan disbursal using real time GST data. STATE OF COMPETITION It is for the first time that the MSME loan processing involves a Straight Through Processing Model (STP) right from the Login to the disbursement automating various manually run processes. This initiative addresses real pain points in credit accessibility, provides timely financial support, and fosters business growth while positioning South Indian Bank as a leader in innovative financial products. A fully digital process, including digital execution of documents and automated disbursements, differentiate this product in a market still heavily reliant on manual processed. Utilizing the GSTR for eligibility validations,gives a strong compliance edge, unlike our competitors who heavily on traditional criteria. DEPARTMENTS INVOLVED The project was a collaborative effort between Business, IT, Credit and Operations teams. Also, we had partnered with FinTechs specializing in digital document execution, GST, ITR, Bank account data management, Credit Bureau information and System driven analytics to bring niche innovation and expertise to the project. RESULTS SO FAR SIB GST Power Business Loan has significantly reduced loan processing turnaround time to less than a day, improved customer on-boarding and increased MSME loan origination volume through digital channels. A 100% increase in the business loan numbers is seen within seven months of implementation, compared to corresponding period of last year. Satisfied customers have lauded GST Power for its simplicity, speed, and ease of use, boosting trust in us. The ease of managing high application volumes without additional workloads has improved the staff morale and efficiency. The launch of this initiative had generated excitement on social media, with positive outlook highlighting its innovative and customer-friendly features. GST Power is being noticed by competitors and industry analysts reinforcing South Indian Bank’s thoughtful leadership.