This paper investigates the criteria used by loan officers at Bank Al Tanmeya when assessing\nSMEs loan applications and the most frequent reasons that lead to turn these applications\ndown. To achieve this, a qualitative research method was adopted. The data were gathered\nusing semi-structured interviews with loan officers at the bank. The results show that the\nability to provide collateral and good business plans alongside the profitability of the\nbusiness are very important. Other criteria such as the applicants� credit history, their\nbusiness experience and the type of business activity are also important. Further, the results\nindicate that SMEs loan applications are generally rejected on the ground that they are not\nrobust enough from the bankers� viewpoint. While lack of collateral is the most frequent\nreason, other reasons include weaknesses in business plan, concerns about the loan\nrepayment, and doubts about the viability of business ventures. These results have the\nability to increase awareness and broaden understanding of the factors that may affect\nSMEs access to bank loans from a supply side perspective.
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