An Evaluative Study Over The Structural Framework Of Small Business Financing In Nagpur City: Special Reference To Nationalized Banks Vs. Private Banks

Abstract

The nation's economy now relies heavily on its MSMEs. It has had a significant impact on increasing exports, creating new jobs, and boosting GDP. Due to liberalisation, privatisation, and globalisation, small and medium-sized enterprises (SMEs) are now engaged in fierce competition. In addition, in today's cutthroat business environment, firms can't afford to be uncompetitive. Their competitiveness is now desired for both efficient resource use and the long-term security of millions of people's standard of living. Small-scale enterprises play a vital part in the economy, but they are unable to grow and contribute as much due to a lack of capital. This article sets out to investigate the primary considerations small businesses make when deciding which financial institutions to approach for a loan. Primary sources were used to acquire data by developing a thorough questionnaire. Data was put through a Factor Analysis process to ensure accuracy. Commercial bank loan applicants from small businesses ranked the following factors as most important to them: basic loan considerations, guidance regarding terms and conditions of loan, easy processing of loan, nature of business, relationship banking, loan utilisation efficiency, competence of firm, banking initiatives, and procuring the loan at the doorstep.