Bridging the Credit Gap: A Study on Awareness of Collateral-Free Credit Schemes among Micro and Small Enterprises

Abstract

This research paper looks at the awareness level of scheme of collateral-free financing among the Micro and Small Enterprises (MSE) in India and the demographic differences in the level of awareness. Primary data was collected with the help of a structured questionnaire, which was analysed with the help of such tools as t-test, ANOVA, Welch test and post hoc tests, including Tukey and Games-Howell. The results showed that there was a moderate and high knowledge of high-impact initiatives with CGTMSE and Stand-Up India the most aware and high differences were found in terms of awareness level depending on gender, age, education and residential status. The outcomes revealed that there was a necessity to have specific financial literacy and outreach programs. Through the study, the policymakers, banks, and development agencies will be able to enhance the performance and reach of financing programs for non-collateral-based MSEs.