Bank's Apprehension in Giving Loans to SMEs

Abstract

The beat of small and medium enterprises (SME’s) in most markets around the world is substantial. SME’s are the most historic foundation of employment, in the market economies, and the most imperative cause of output and GDP growth. The study classify major problems faced by the SME’s are, lack of finance, marketing edgy entrance to the latest technology, lack of professional competency, inflexible Govt policies, inadequate collateral, incapacities of SME’s flux in the market, moreover Banks apprehensive attitude because Banks are found to be ineffective in upholding unambiguous standards for evaluating SME. The primary focus of this paper is to trace the channels or processes through which regulation and competition policies affect small and medium enterprises (SME’s) in developing countries. The third section identifies the impact of regulatory and competition on SME growth using survey data. To identify and analyze the problems faced by SME’s in Pakistan To recommend measure of Smeda, SME Bank, Chamber Of Commerce and other interested groups SME’s with growth-oriented management can adopt faster to change, create new products faster and bring them to market more swiftly, while feeding the larger companies with low cost, high value services. SME’s in traditional areas of production fit the classical stereotype of small-scale industry.