Role of Public Sector Bank In Financing MSMEs: A Study of Saharanpur District, Uttar Pradesh

The present study examines the role of public sector banks in financing Micro, Small and Medium Enterprises (MSMEs) in Saharanpur district of Uttar Pradesh.The main objective of the study is to analyse the availability of institutional credit to MSMEs, the types of banking facilities availed, and the problems faced by enterprises in accessing bank finance.The study is based on both primary and secondary data.Primary data were collected through a structured questionnaire from 50 MSME units operating in the study area, while secondary data were obtained from reports of the Reserve Bank of India, Ministry of MSME, public sector banks and published research studies.A descriptive and analytical research design has been adopted, and data were analysed using simple statistical tools such as percentages, tables and charts, along with the chi-square test to examine associations between selected variables.The findings reveal that public sector banks are the primary source of institutional finance for MSMEs; however, issues such as procedural delays, documentation requirements and limited awareness of government schemes continue to hinder effective credit delivery.The study highlights key areas for strengthening district-level MSME financing mechanisms and is expected to be useful for bankers, policymakers and researchers.