Bank of India to Offer MSME Loan in 30 Minutes; Targets 2 lakh MSMEs in 6 Months

Public sector lender Bank of India on Tuesday launched its 30-minute MSME loan initiative BOI Trade Easy in collaboration with supply chain finance technology provider Cashinvoice. The new platform aims to disburse Rs 1,000 crore in working capital loans in four-six months, targeting over 2 lakh MSMEs in India.

The new initiative offers MSME loans in 30 minutes in comparison to the traditional 15–30 days, using the digitised credit assessment and fully automated onboarding.

“Access to timely and structured financing has remained a critical challenge for many Indian MSMEs for years. As part of our broader strategy to support efficient credit delivery and enhance the overall customer experience, we have continued to explore innovative digital solutions that simplify lending and reduce operational bottlenecks,” said Ashok Kumar Pathak, CGM, Bank of India in a statement.

The new initiative automates onboarding, performs real-time risk scoring, and ensures compliance with regulatory standards. It is connected to the bank’s core banking platform and over 5,000 branch network to help MSMEs access credit in tier-2 and tier-3 markets.

India’s 63 million MSMEs employ more than 110 million people and generate close to a third of national output. Yet the sector faces a credit gap of over Rs 20 lakh crore. Long approval cycles and limited access to working capital continue to constrain growth.