Repaying Capacity and Commitment Levels of MSME Customers of Regional Rural Banks in India with Special Reference to Coimbatore City

Abstract

Financial assistance is the acute input for growth and development of MSE. The lack of creditworthiness in respect of lending-borrowing generates inoperative accounts and inactive assets which becomes idle and unproductive for both the sides i.e. between Regional Rural Banks and Micro & Small Enterprises. The present study tries to identify the fluctuating factors and causes for the instability of creditworthiness in respect of assessment of credit proposals realized in between RRB and MSME. This study was intended to study the factors influencing repayment of Credit and to identify the causes of success and failures during the repayment of credit. The reasons for Credit Worthiness and Repayment success or failures were found out by the use of Weighted Average Score Analysis, the instability of Creditworthiness is found. The fluctuations in Creditworthiness are to be significantly assessed during pre and post sanctioning of credit proposals.