Questionnaire on Bank Credit Facilities Available to SMES

I, Arshia Arora a student of a University Business School, PURC Ludhiana is conducting a research on Bank Credit Facilities Available to SMES. I request you to take a few moments of your time and answer a few questions. I assure you that the information provided by you will be kept confidential. Name Designation Name of the company Location .. . . .

Question Section
1. What is the nature of your business? Manufacturer Others Please Specify____________ Service

2. What is the form of your organization? Sole Trader Co-operative Society 3. For how long you are running your business? 1-5 years 10-15 years 5-10 years More than 15 years Partnership Firm Private Limited

4. What is the investment outlay of your organization? 10 Lakhs to 25 Lakhs 1 Crore to 5 Crore 25 Lakhs to 1 Crore 5 Crore to 10 Crore

5. From which source your firm has borrowed the capital for the organization? Commercial Banks State Financial Corporation

Commercial Banks and State Financial Corporation Friends and Relatives Money Lenders

6. What is the business turnover of your organization? Less than Rs.50 Lakhs 1 Crore to 2 Crore 50 Lakhs to 1 Crore More than 2 Crore

7. Does bank encourage credit facility to SMEs as an a economic responsibilities? Yes No

8. What type of credit facilities you generally choose for your business operations? Long term Short term

9. What is the main priority sector to you while going to a particular or same bank? Strongly Agree Interest Rate Services Long term relations Special preferences 10. Which of these following facilities is provided by your bank? A) Over draft B) Cash Credit C) Term Loan D) Others 1 What are the Problems being faced by the SMEs in obtaining the credit? Non Eligibility of Credit Rise in Interest Rate Agree Neutral Disagree Strongly Disagree

Delay in process Heavy Documentation Service issues 2 What are the Problems experience by SMEs in securing loans Delay in sanction Security problem No. Of visits paid up & followed up Incidental expenses Any other problem 3 For what basis you generally prefer to take such kind of credit facilities? Increase the production Increase the working capital Purchase raw material Modernization Business expansion 4 What Type of Subsidies are enjoyed by your organization? Full Partial Nominal 40/60 Nill Subsidy 5 According to you which bank is fast in granting the credit to Smes HDFC ICICI Axis Bank SBI Others, Please Specify________ 6 What kind of behaviour is experienced from the Financial Agencies in granting loan Friendly

Neglecting Helpful Non-cooperative 7 What is the Percentage of Loan amount sanctioned by the bank? 100% 75% 50% 25% 8 How much time was been taken by the bank for sanction of loan? 1 Week to 1 Month 1 Month to 2 Months 2 Months to 4 Months 4 Months to 6 Months More than 6 Months 9 What were the Facilities provided by them to repay the loan? Interest Holiday Deferred payments E.M.I Interest charged on yearly basis 10 What is the capacity utilization or your firm? Under utilization of the capacity Over utilization of the capacity Installed capacity utilization Not utilizing the installed capacity Q1. What are the sources of finance used by your enterprise?

A) Owners financing B) Private financial institutions

C) Equity finance

D) Bank financing

E) Venture capital

f) Hire purchase and leasing g) Business angel financing Q7. What were the problems faced by your enterprise in raising finance from public sector banks?

A) Insufficient collateral high

d) Cost involved is

B) Poor documentation

e) Biasness

C) Delay in the sanction of loan interest

f)

High rate of

Please indicate your level of satisfaction with various aspects of obtaining finance from these public sector banks. Kindly rate them on 5-point scale basis; 5 being strongly satisfied and 1 being strongly dissatisfied: Strongly Satisfied Neutral Dissatisfied Strongly Satisfied 12.1) The amount granted by the bank relative to the amount requested 12.2) The simplicity of the application form Dissatisfied

12.3) Interest rate 12.4) Service fees 12.5) Time to obtain approval 12.6) Guarantees required by the institution 12.7) Behavior of the bank staff Q12. Apart from such schemes, what initiatives government can take for improving SME business in India? A) Decrease the amount of taxes

B) Support innovative technological companies

C) Guidance for upgrading skills & knowledge of entrepreneurs

D) Assistance and support for revival of sick units

E) Introduce a Single Window concept for helping smes