introduction
INTRODUCTION
Credit to the SME sector has been a priority area for the policy makers of our country. This is evident from the recent announcements about the stimulus package during global economic slowdown and also in recent Monetary and Credit policies and Union Budgets.
The Small and Medium Enterprises (SMEs) have been playing an important role in the social and economic development of our country. They often act as a entrepreneurship nursery. They play a key role in economical development of with their efficient, effective, innovative and flexible entrepreneurial spirit. The SME sector significantly contributes to a country’s employment and exports, manufacturing output, and for generation of high employment growth. It also accounts for a major share in industrial production and exports.
About the Product-The State Bank of India Asset Back Loan (SBI ABL) scheme is offered to all business units who want to avail loan facility for manufacturing and services activities, wholesale/retail trade. The purpose of the loan is to build-up current assets and fixed assets needed for business purpose, capacity expansion, modernization, short-term working capital, etc.
The project basically is about the credit appraisal for different SME units for the sanction of State Bank of India’s Asset Back Loan (SBI ABL). In this project, some SME units have been analyzed as per their needs based on certain parameters, to see if the sanction should be made or not.
Credit appraisal is being done for a few SME units before providing any loans and advances for the proposed projects, keeping the main objectives in mind. The appraisal decisions are taken on the basis of some parameters, which will be discussed as we proceed further. Proper evaluation of the units in done in order to check the ability of the customers to repay back the loan in future.
RESEARCH QUESTION-
To analyze the Credit Appraisal to the Micro, Small and Medium Enterprises by State Bank of India
Credit to the SME sector has been a priority area for the policy makers of our country. This is evident from the recent announcements about the stimulus package during global economic slowdown and also in recent Monetary and Credit policies and Union Budgets.
The Small and Medium Enterprises (SMEs) have been playing an important role in the social and economic development of our country. They often act as a entrepreneurship nursery. They play a key role in economical development of with their efficient, effective, innovative and flexible entrepreneurial spirit. The SME sector significantly contributes to a country’s employment and exports, manufacturing output, and for generation of high employment growth. It also accounts for a major share in industrial production and exports.
About the Product-The State Bank of India Asset Back Loan (SBI ABL) scheme is offered to all business units who want to avail loan facility for manufacturing and services activities, wholesale/retail trade. The purpose of the loan is to build-up current assets and fixed assets needed for business purpose, capacity expansion, modernization, short-term working capital, etc.
The project basically is about the credit appraisal for different SME units for the sanction of State Bank of India’s Asset Back Loan (SBI ABL). In this project, some SME units have been analyzed as per their needs based on certain parameters, to see if the sanction should be made or not.
Credit appraisal is being done for a few SME units before providing any loans and advances for the proposed projects, keeping the main objectives in mind. The appraisal decisions are taken on the basis of some parameters, which will be discussed as we proceed further. Proper evaluation of the units in done in order to check the ability of the customers to repay back the loan in future.
RESEARCH QUESTION-
To analyze the Credit Appraisal to the Micro, Small and Medium Enterprises by State Bank of India