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strata of the income, whose needs are smaller
but stronger. To support the borrowers of Shishu
category currently there is an Interest Subvention

scheme going on to cushion the worst impact of
pandemic on small business.

In order to understand the experience of the
lenders in terms of preferred category of loan by the

borrowers, among Shishu, Kishor and Tarun, the
respondents were asked to share which category
of loans were mostly taken. The analysis of these
lenders’ responses shows that maximum number

of borrowers (62.80%) have applied for Kishore
loan (Rs 50,000- Rs. 5,00,000). One reason behind
these could be growing needs of the business.
For any small business also, to meet the long-

term capital asset needs and to manage working
capital requirements, an amount of Rs. 50,000
may fall short. Also, the costs are ever rising in
urban areas. A sufficiently large borrowing, which

makes it possible to buy fixed assets as well as run
the business for few months is a well calculated
intention of many and this might be the reason for
more inclination towards Kishor category. The least

asked for loan is Tarun category, which provides
finance from Rs. 5,00,000 – Rs. 10,00,000 (Figure
No. 27).

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