CREDIT ACCESSIBILITY AND PERFORMANCE OF SMEs INSIDE KATHMANDU VALLEY

Date
2022-07
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Abstract
SMEs are often considered to be as engine that drives the economy yet, they are frequently denied financing due to their inherently unpredictable character. It is recognized as a significant risk that has lasted for a considerable a predetermined amount of time and that necessitates an immediate and appropriate response from both non-governmental groups and government-based entities. It is impossible to overstate on significance of SMEs in Nepal’s growth.
Description
Most financial institutions along with non-financial institutions require collateral in the form of tangible assets in addition on other stringent requirements to reduce repayment default rates while lending to SMEs. Hall and Fang (2004) found that lending to SMEs was perceived as being riskier than lending to large established firms. Commercial banks that lend to SMEs confront a number of challenges in acquiring accurate and trustworthy information about the performance and financial status of SMEs.
Keywords
Credit Accessibility, SM Enterprise
Citation