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"In FY26, in 12 months, we can underwrite loans up to ₹5 crore, both covering the new-to-bank customers, as well as existing customers. Almost ₹1 lakh crore we were able to underwrite," says SBI Managing Director
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Mains Practice Question
Discuss the potential benefits and challenges of using artificial intelligence for underwriting MSME loans, particularly in the context of India's financial sector.
250 words
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How much in MSME loans did SBI use AI to underwrite in FY26?
SBI used AI to underwrite nearly ₹1 lakh crore in MSME loans in FY26. This is a significant development in the field of artificial intelligence and its application in banking.
Consider the following statements regarding SBI's MSME Loan Underwriting: 1. In FY26, SBI used AI to underwrite ₹1 lakh crore in MSME loans. 2. SBI can underwrite loans up to ₹5 crore in 12 months. 3. The use of AI by SBI for MSME loan underwriting led to a significant increase in the number of loans approved. How many of the above statements are correct?
Statement 1 is correct because it directly matches fact 1. Statement 2 is correct because it directly matches fact 2. Statement 3 is incorrect because there is no information in the fact list that suggests a causal relationship between AI use and loan approvals.
Consider the following two statements: Statement-I: SBI used AI to underwrite nearly ₹1 lakh crore in MSME loans in FY26. Statement-II: In FY26, SBI's use of AI for loan underwriting led to a significant increase in the number of MSME loans sanctioned. Which one of the following is correct in respect of the above statements?
Statement 1 is correct because it directly matches fact 1. Statement 2 is incorrect because the fact list does not provide any information about the impact of AI-based loan underwriting on the number of MSME loans sanctioned.