EVALUATING THE EFFECTIVENESS OF MICROCREDIT PRACTICES BY SMALL FINANCE BANKS: A PERFORMANCE‑BASED STUDY OF MICRO AND SMALL ENTERPRISES IN AUTOMOBILE ANCILLARY UNITS

This study examines the effectiveness of microcredit procedures offered by small financial banks (SFBS) on the performance of micro and small enterprises (MSE) in the automotive auxiliary sector Maharashtra. Using convergent design of mixed methods, primary data from 120 MSE owners across three main industrial clusters (PUNE, AURANGABAD, Nashik) were collected. The quantitative component analyzed key financial conditions - including the turnover of the working chapter, net profit range and return of assets - comparable values before and after payout. The qualitative component included semi -structured interviews with 20 MSE owners and 5 SFB officials to capture nuances perspectives for loans, payday and credit services (training, technical consultancy). The study concluded that while SFB Microcredit is effectively engaged in gaps with short term financing, loan interventions Plus are decisive for the long -term company development. Policy recommendations include: (1) technical training modules specific to strengthen the sector; (2) streamline the processes of documentation and compliance with regulations; and (3) connection of interest subsidies with benchmarks of power. These measures can help SFBS maximize the developmental impact of the micro -jar on the MSE in the capital industry.