Abstract :

Credit Risk In Micro, Small, And Medium Enterprises (MSMEs) Is A Significant Concern For Financial Institutions And Plays A Vital Role In Maintaining The Stability Of The Banking Sector And Supporting Economic Growth. This Study Examines The Factors Influencing Credit Risk In MSMEs, Including Financial Performance, Cash Flow Management, Collateral Availability, Repayment History, Market Conditions, And Business Management Practices. It Also Evaluates The Effectiveness Of Credit Appraisal Systems, Risk Assessment Techniques, And Monitoring Mechanisms Adopted By Banks And Financial Institutions To Minimize Loan Defaults. The Study Aims To Identify The Major Causes Of Credit Risk And Suggest Strategies To Improve Credit Quality And Lending Decisions. By Strengthening Credit Risk Management Practices, Financial Institutions Can Reduce Non-performing Assets (NPAs), Enhance Financial Inclusion, And Ensure Sustainable Growth Of The MSME Sector, Which Is A Key Contributor To Employment Generation, Industrial Development, And The Indian Economy.

Published:

04-8-2026

Issue:

Vol. 26 No. 8 (2026)

Page Nos:

232 - 245

Section:

Articles

License:

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

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