An Analysis of Indian Overseas Bank's Case Study on the Conceptual Framework of Lending Technologies for Financing Small and Medium-sized Businesses

This to examine the Indian Overseas Bank’s credit facilities MSMEs with various financing options available and also examine the constraints in credit facilities. The sample respondents was 90, which comprised of seventy-one manufacturing enterprises and nineteen service enterprise respondents. Statistical tools such as Percentage analysis, Chi-square Test, factor analysis was used to analyse the data. The study revealed that, among manufacturing enterprise and service enterprise respondents, majority (67.60 per cent and 57.89 per cent) were small entrepreneurs. in middle age group (37.78 per cent). About 40 per cent were graduates and 78.89 per cent were sole proprietors. There was a significant association between type of business and age group, form of organization and business experience. 98 per cent of respondents were aware about term loan of which 65.90 per cent availed loan. 91 per cent of the respondents were aware of working capital finance of which 70.73 per cent availed loan. Bank officers (67.77 per cent) were main source of information. The source of finance (64.44 per cent) was IOB loan. They were willing to avail loan amount of Rs. 1-10 lakhs for two years. Maximum respondents repaid 25-50 per cent of loan. Difficulties faced by the customers in availing credit facilities were grouped under seven factors. Top five ranks were given to the statements such as; network of bank branches is not good, no wide range of services, non-availability of timely rehabilitation finance, lack of dissemination of information and lack of MSME loan processing centres at key locations. Majority of the respondents suggested for specialized branches of MSMEs (40 per cent).