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@article{187395,
        author = {A.Usha Lakshmi and Dr.K.Selvavinayagam},
        title = {Reassessing Business Loan Practices and Growth Outcomes among Small Enterprises: Evidence from Private Commercial Banks in Urban Tamil Nadu},
        journal = {International Journal of Innovative Research in Technology},
        year = {2025},
        volume = {12},
        number = {6},
        pages = {5283-5288},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=187395},
        abstract = {Small enterprises remain central to urban economic development in Tamil Nadu, yet their growth is often constrained by limited access to appropriate financial support. This study investigates the range of business loans offered by leading private commercial banks and evaluates how lending practices, approval criteria, and loan sizes influence the performance of small enterprises. Using a mixed-methods approach, data was collected from 100 small business owners and 10 bank managers across Chennai, Coimbatore, Madurai, and Trichy. Quantitative data captured loan amounts, repayment experiences, and growth outcomes, while qualitative interviews explored approval processes and borrower challenges. Results show that term loans and working capital loans constitute the most widely offered products, with collateral, creditworthiness, and business plans forming the dominant approval criteria. Regression and correlation analyses indicate that stricter approval mechanisms are linked to lower default rates, while higher loan amounts demonstrate a positive—though context-dependent—impact on business expansion. Insufficient collateral, documentation delays, and weak financial records continue to hinder loan accessibility for many enterprises. The study recommends simplifying loan procedures, providing tailored financial products, and strengthening financial literacy initiatives to support sustainable small business growth.},
        keywords = {Small Enterprises; Business Loans; Private Commercial Banks; Loan Approval Criteria; Repayment Experiences; Financial Accessibility and SME Growth.},
        month = {November},
        }