Challenges Faced by Small & Medium Enterprises in Obtaining Credit (MBA Finance)

MBA Project Type: Finance

Project ID: 1576

Description: The importance of SME’s in the manufacturing sector is due to major contribution for the growth of Indian economy. Nearly, 90% of the total industrial units in India fall under this category. To enhance the competitiveness and growth of the manufacturing or industrial sector, the Government has to take steps to ensure financial assistance and adequate flow of credit to SME’s. The major hindrance in the growth of SME’s is inadequate funds and unavailability of timely credit for their growth plans. The huge amount of paper work involved and the processes required to avail a bank loan is also a reason for the financial problem of many SME’s leading to closure of some units. The National Manufacturing policy (NMP) announced by the Government, has aimed to increase the sectoral share of manufacturing in GDP to 25% in a decade from 16% at present. This will necessitate enhancement of the growth rate of SME’s sector. Hence, the role of banks in providing the adequate credit requirement of the developing SME’s is vital for the growth of Indian economy. Though the banks have reduced the gap between the funding from banks and the credit requirement of SME’s, a re-examination of the role of banks and a detailed study and analysis of the bank credit to SME’s is more important to be considered. With a large number of banks and SME’s within the Mumbai, the undertaken study has better scope to find out challenges faced by SME to get require credit. Further, the study will be able to suggest possible ways to improve the credit facilities offered by banks to SME’s.
Project Report Pages: 65

Can be used in: Finance

Project Cost: Rs 1550 / $ 31

Synopsis Cost: Rs 350 / $ 7

Delivery Time: Within 12 hours.

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