EVALUATING THE EFFECTIVENESS OF MICROCREDIT PRACTICES BY SMALL FINANCE BANKS: A PERFORMANCE‑BASED STUDY OF MICRO AND SMALL ENTERPRISES IN AUTOMOBILE ANCILLARY UNITS
DOI:
https://doie.org/10.5281/mq8mn994Keywords:
microcredit, small financial banks, micro and small businesses, auxiliary units for cars, working chapter turnover, credit and plus services, Maharashtra..,,Abstract
This study examines the effectiveness of microcredit procedures offered by small financial
banks (SFBS) on the performance of micro and small enterprises (MSE) in the automotive
auxiliary sector Maharashtra. Using convergent design of mixed methods, primary data from
120 MSE owners across three main industrial clusters (PUNE, AURANGABAD, Nashik) were
collected. The quantitative component analyzed key financial conditions - including the
turnover of the working chapter, net profit range and return of assets - comparable values before
and after payout. The qualitative component included semi -structured interviews with 20 MSE
owners and 5 SFB officials to capture nuances perspectives for loans, payday and credit
services (training, technical consultancy).
The study concluded that while SFB Microcredit is effectively engaged in gaps with short
term financing, loan interventions Plus are decisive for the long -term company development.
Policy recommendations include: (1) technical training modules specific to strengthen the
sector; (2) streamline the processes of documentation and compliance with regulations; and (3)
connection of interest subsidies with benchmarks of power. These measures can help SFBS
maximize the developmental impact of the micro -jar on the MSE in the capital industry.
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