Since that survey, some headway must have been made in improving MSMEs’ access to formal financial channels; however, it still remains a challenge. The public sector banks today have close to 3000 specialized branches which specialize in lending to MSME units. Private sector banks have built up products and processes, which enable quick disbursal of loans.
Most banks have switched over to centralized credit sanctioning, which enables better turnaround time. Many others have increased the credit limits to the field level functionaries.