Access to finance is an important feature in the business operations of MSMEs. The aim of financing MSMEs is to help them improve their business grow the asset base and compete with other enterprises. Lending of funds to MSMEs is one of the important activities of banks and financial institutions, but there is a considerable difference between the amount required by the MSMEs and the amount sanctioned to them by the lending institutions. It is this difference which creates a major problem for the MSMEs as this compels them to borrow from unregulated lending markets or from their own dealers and end up paying much higher interests. The present paper studies the sector wise availability of loan to MSMEs in the present scenario. 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 MSMEs were chosen for the research. Evidence from the analysis shows that overall for the MSMEs only 93 per cent of amount demanded was sanctioned and only 69 per cent was disbursed.
Asset base, Unregulated lending markets, Loan demanded, Loan sanctioned
