Published Paper Details:

The role of banks in enabling access to finance for small businesses is central to the broader objective of financial inclusion in India. The paper identifies how factors such as lack of collateral, weak financial literacy, and limited awareness of formal schemes hinder the loan process. Based on a sample of 50 businesses, the findings call for reforms in loan processing, education, and personalized banking. This research paper explores how banks support small business loans in India. Small businesses are vital for economic growth, but they face significant hurdles while seeking financial assistance from banks. A survey of 50 small business owners revealed that collateral demands, limited financial knowledge, and low awareness of government schemes are major barriers. However, strong bank relationships and financial literacy improve loan approval chances. The paper recommends simplifying procedures, promoting government schemes, and offering financial education to empower small businesses. Small businesses contribute to both urban and rural employment in India, making them critical to inclusive economic development. However, the accessibility and suitability of credit systems for these enterprises remain questionable. Understanding the bank's limitations and how to bridge the financial inclusion gap is necessary to empower MSMEs.