Providing MSME Finance: The Indian perspective

Accessibility of adequate finance at affordable cost is significant for Indian MSMEs. MSMEs huge contribution to employment generation and the role they play in sustainable development prompted many countries around the world to come up with special programs and support organizations for the development and growth of this sector. But the financing problems still persevere; MSMEs generally have restricted access to finance. The present paper studies the industry wise availability of loan to MSMEs in the present era. A descriptive analysis was done to permit the study to make use of both quantitative and qualitative data collection techniques and data analysis procedures. In all, 112 enterprises were chosen for the research. Evidence from the analysis shows that there is significant variation in the amount demanded and disbursed by financial institutions to different sectors.