September’14 Issue Cover story: SME Banking & Finance

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SME Banking is a different business altogether. Even though SMEs do have a corporate structure, most of them run as sole proprietorship or family-owned businesses. Hence, bankers need to engage with them and understand their requirements and repayment capabilities. Bankers need to work closely with SME associations and experts to have more knowledge about the business.

The financial crisis have hampered SMEs in securing bank credit due to their low sales and weakened collateral, and growing risk aversion among lenders. While there are limitations to access to bank loans and other facilities, many other factors prevents banks, both large and small, from approaching SMEs.

With the slowdown in large corporate loan disbursement many Banks and financial institutions are now betting big on the SME segment. Bankers claim the quality of SME loan book has improved in recent years. Many SMEs are not aware of the facilities a Bank can offer. They do not know how to approach a bank.

In September’14 issue of Small Enterprise Magazine, we discuss all about: