Page 1991
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INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,
MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)
ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XV, Issue V, May 2026
Financial AID to the Micro and Small Enterprises by the Financial
Institutions in Papum Pare District of Arunachal Pradesh
Pura Monya
(Research scholar) Department of commerce, Rajiv Gandhi University Arunachal Pradesh.
DOI: https://doi.org/10.51583/IJLTEMAS.2026.150500157
Received: 11 May 2026; Accepted: 16 May 2026; Published: 10 June 2026
ABSTRACT
Finance is the lifeline of any form of business, and its timely and adequate supply is crucial for the survival of
micro and small enterprises. Micro, small and medium enterprises (MSMES) play a crucial role in the
development of our economy by providing ample scope of employment, export promotions, uplifting regional
balance and contribution toward GDP. Despite of the noticeable achievements, this sector faces challenges for
timely and adequate supply of finance. State government always promotes these sectors with different schemes
and policies by collaborating with financial institutions from time to time. This paper deals with understanding
the support of financial institutions in the study area provided to the micro and small enterprises for accessing
finance i,e analysing the banking institutions in the papum pare district of Arunachal Pradesh for providing loans
to the micro and small enterprises.
Keywords: Financial assistance, scheme, MSEs, Financial Institution.
INTRODUCTION
Over the last five decades, the micro, small and medium enterprises (MSMEs) sector has emerged as a highly
vibrant and dynamic sector of the Indian economy. The sector plays a crucial role in the development of our
economy by providing an ample scope of employment, export promotions, uplifting regional balances
contribution toward GDP. (Sarda & Baruah,2019). Despite of the huge potentials the sector faces the challenges
of timely and adequate supply of credit (Kulkarni,2007). Financial institutions play a key role for the growth of
the sector in the study area. However limited access to formal credits and underutilisation of government schemes
continue to restrict their growth. This paper tries to understand the support extended by the financial institutions
in providing government led schemes to the micro and small enterprises (MSEs) in the papum pare district of
Arunachal Pradesh.
Objectives: To study the financial support or schemes provided to the micro and small enterprises (MSEs) by
the various financial institutions in the study area.
REVIEW OF LITERATURE
Biri &Tasi (2024): In their study “government support in promoting women entrepreneurship in Arunachal
Pradesh” focused on the government policies and subsidies for women entrepreneurs and concludes that the
awareness and accessibility were the key barriers.
Das (2021): In his work “Institutional financial support to the MSMES in Assam” reveals that due to strict
lending requirements, procedures and operational standards commercial banks were unable to meet the funding
needs of MSMEs.
Sarda & Baruah (2020): In their work “borrower discouragement: loan delays and rejection: evidence from
MSMEs in Assam” pointed out there is a large demand and supply gap in terms of bank credit to MSEs and
improvement in the schemes is the need of hours.
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INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,
MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)
ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XV, Issue V, May 2026
Sarda & Baruah (2019): In their study named “A study on schemes of state bank of India for lending to
MSMEs” shows that various schemes of SBI for the MSMEs and also suggested that enterprises should focus
on all the other schemes of the financial institutions for availing credit on time.
Rai (2018): In her work “A study on status and problems of MSMEs in Papum Pare district of Arunachal
Pradesh” outlined some important finance related issues such as limited access to institutional credits and equity
and delay or absence of adequate banking finance and priority sector lending.
METHODOLOGY
For the purpose of the study, the various bank wise loan applications under various schemes namely- Deen Dayal
Upadhayay Swabalamban Yojana (DDUSY), PM SVANidhi scheme, bank wise progress under annual credit
plan (ACP) disbursement (MSMEs), from the regional head office of SBI, located in the bank tinali of Papum
Pare district for the period 2023-2024 under priority sector lending was considered for the study. A systematic
and thorough analysis of the above-mentioned loan applications of various banks in the study area has been
carried out in order to reach a real understanding or for effective results
Table 1.1: Bank wise report of DDUSY for Papum Pare district (2023-2024)
S.NO
BANK NAME
NOS OF APPLICATION
(%)
1
Bank of Badodra (B0B)
5
13%
2
Bank of India (BOI)
1
3%
3
Bank of Maharastra; (BOM)
1
3%
4
Canara Bank (CAN)
2
5%
5
Central Bank of India (CBI)
2
5%
6
Indian Bank (IND)
1
3%
7
Indian Overseas Bank (IOB)
1
3%
8
Punjab National Bank (PNB)
3
8%
9
Punjab Ancient Bank (PSB)
0
0%
10
State Bank of India (SBI)
17
47%
11
UCO Bank (UCO)
2
5%
12
Union Bank of India (UNI)
2
5%
Total
36
100%
Source- Field Study
Figure 1: Bank wise DDUSY schemes report
47
13
8
5
3
SBI BOB PNB
CAN, CBI,UCO,UNI BOI,BOM,IND,IOB PSB
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INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,
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Source: Field study
INTERPRETATION: It is observed from the fig no.1 that the highest no. of loan application under schemes
DDUSY is received by the State bank of India which is 47% in the study area for the year 2023-24. And the
lowest no. of loan application is received by banks BOI, BOM, IND & IOB which is 3% and no loan application
received by PSB. The data shows extremely low participation levels across all banks, SBI and BOB accounted
for most no. of applications. This indicate that the schemes are poorly promoted in the study area.
Table 1.2: Bank wise progress under annual credit plan (ACP) disbursement (MSEs) of Papum Pare
district (2023-2024)
Source- Field study
TL- Term loan
WC- Working Capital
Figure 2: Bank wise progress under ACP Disbursement (MSEs)
Source- Field study
Interpretation: It is observed from the fig. no. 2 that the state bank of India, Bank of Baroda and Bank of India
performance in providing term loan to the MSEs under the priority lending schemes of ACP is appreciable and
which is at 20%, 18% & 11%. Likewise, the performance in providing working capital requirement to the micro
and small enterprises is noticeable and the banks are SBI, IND, UCO etc. The poor performance of the banks is
PSB and PNS which is 1%. The data reveals a healthy participation by public sector banks in MSMEs lending
particularly in micro enterprises. SBI emerges as the most balanced performer.
Table 1.3: Bank wise PM SAVA Nidhi schemes status of Papum Pare district (2023-2024)
BANK NAME
NOS APPLOICATION
PERCENTAGE
1
BOB
70
6%
2
BOI
52
4%
3
BOM
19
2%
4
CAN
54
4%
5
CBI
42
3%
6
IND
33
3%
20%
18%
11%
9%
8%
5%
3% 1%
SBI BOB BOI IND,UCO CAN,IOB CBI BOM,PNB PSB
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7
IOB
12
1%
8
PNB
45
4%
9
PSB
2
0%
10
SBI
854
72%
11
UCO
9
1%
12
UNI
5
0%
Total
1177
100%
Source- Field study
Figure 3: Bank wise PM SAVA Nidhi scheme report
Source- Field study
Interpretation: It is observed from the above fig. that the banks processed highest no. of loan application of
854 which is 72% is the State bank of India under the govt. scheme PM SAVA Nidhi loan in the study area and
the banks whose performance is extremely low are the UCO banks and Indian overseas bank which is 1%. SBI
shows a remarkable outreach and implementation capacity compared to other banks. The data demonstrates that
PM SAVA Nidhi has reached many beneficiaries in Papum Pare through SBI.
FINDING AND DISCUSSION
The analysis of the annual credit plan (ACP), Deen Upadhyay Swavalamban yojana (DDUSY) and the PM SAVA
Nidhi scheme in Papum Pare district for the year 2023- 2024 presents a revealing picture of the performance of
the financial institutions in extending credit support to micro and small enterprises (MSEs). The financial support
system for MSMEs in the study area shows promise but suffers from institutional imbalance, poor scheme
penetration and low credit diversification. Whereas SBI demonstrates consistent leadership across all schemes,
other banks need more proactive policies to match performance.
CONCLUSION AND RECOMMENDATION
The financial support system for MSMES in Papum Pare district shows promise but needed more proactive
policies and programmes. In the area of credit diversification, need to set a target for small enterprises;
improve DIC-bank linkage. For scheme awareness, need to conduct block level campaign for DDUSY and PM
SVANidhi. Timely monitoring and review by the district credit committees for better result.
72%
6%
4%
3%
2% 1%
SBI BOB BOI,CAN,PNB CBI,IND BOM IOB,UCO UNI
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REFERENCE
1. Amji, B, & Kaye, T. (2024). Government support in promoting women entrepreneurship in Arunachal
Pradesh: An overview. Asian journal of management and commerce, 5(2), 95-100.
2. Kulkarni, S.S. (2007). Strengthening of Credit flow to SSI Sector in India- New Approaches, (Doctoral
3. dissertation, University of Pune, India).
4. Rai, L, & Mall, M. (2022). A study of status and problems of micro small and medium enterprises in
Papum Pare district of Arunachal Pradesh. International journal of social science and economic research,
7(9), 1902-1916.
5. Rao, K.S.R., Das, A. & Singh, A.K. (2006). Commercial Bank Lending to Small-Scale Industry,
Economic and
6. Political Weekly, 41(11), 1025+1027-1033.
7. Sarda, R, & Baruah, D. (2019). A study on schemes of state bank of India for lending to MSMEs.
International journal of management studies, 6(3), article 14
