“A Study on Msme Financing by Jana Small Finance Bank in Karnataka”

Abstract

This study examines the role and effectiveness of Jana Small Finance Bank (Jana SFB) in providing financial support to Micro, Small, and Medium Enterprises (MSMEs) in India. MSMEs are crucial for economic growth and job creation, but they face restricted financial availability from formal channels. The study addresses the persistent gap between the financial needs of MSMEs and the accessibility and effectiveness of services provided by Jana SFB. Employing a descriptive research design with a sample of 50 respondents, the study analyzed the bank's lending practices.
Key findings indicate that Jana SFB primarily serves micro-enterprises, with nearly 78% of respondents availing loans below ₹5 lakhs. A significant majority (68%) opted for collateral-free loans, highlighting the bank's critical role in removing barriers to credit access for small entrepreneurs. Furthermore, the study established Jana SFB as a fast and efficient loan provider, with 82% of loans processed within 15 days. The research concludes that Jana SFB is an effective and reliable source of credit for small and emerging businesses due to its simplified documentation and rapid loan processing.