Micro, Small and Medium Enterprises (MSME) sector has emerged as a exceedingly vibrant and dynamic quarter of the Indian financial system over the last five decades. MSMEs not simplest play crucial function in presenting big employment opportunities at comparatively decrease capital value than massive industries but also assist in industrialization of rural & backward regions, thereby, reducing regional imbalances, assuring extra equitable distribution of countrywide profits and wealth. MSMEs are complementary to massive industries as ancillary devices and this region contributes extraordinarily to the socio-economic development of the usa. MSME zone is the second biggest employment company in our u . S . And it is ideal automobile to gain inclusive and dispensed growth. Ministry of Micro, Small & Medium Enterprises (M/o MSME) envision a vibrant MSME zone by way of selling boom and improvement of the MSME Sector, inclusive of Khadi, Village and Coir Industries, in cooperation with worried Ministries/Departments, State Governments and other Stakeholders, thru supplying aid to current enterprises and encouraging advent of new organisations. This observe has undertaken to check diverse problems referring to SME finance from banks taking the published information and primary information into account, to look at the motives why banks turn away from lending to the world and what are feasible treatments to beautify accessibility of SMEs to financial institution finance