A STUDY ON THE CHALLENGES FACED BY SMALL & MEDIUM ENTERPRISES IN OBTAINING CREDIT IN TELANGANA STATE

Abstract

Small and Medium Enterprises (SMEs) contribute significantly to employment, entrepreneurship, innovation, industrial output, and regional development in Telangana. However, inadequate access to timely and affordable credit continues to restrict their growth and competitiveness. This study examines the major challenges faced by SMEs in obtaining credit in Telangana State, including collateral requirements, documentation, loan processing delays, high interest rates, and financial awareness. It also evaluates the role of banks, awareness of government credit schemes, and possible solutions for improving institutional finance. Primary data were collected from 100 SME respondents and analysed using percentage analysis. Findings indicate that collateral is the challenge. Keywords: SMEs, Institutional Credit, Collateral, Financial Inclusion, Telangana