The SMEs sector is emerging as one of the dominant sectors of the Indian economy. A convenience sample survey of 150 SMEs across Chennai city was conducted to analyze the awareness level regarding business credit facilities provided by the banks. The study also examines the credit requirements of SMEs, as well as difficulties faced by SMEs in availing bank finance. The study findings indicate that most of the SMEs are availing cash credit facility from banks and are aware of the bank credit facilities through their agents. In availing bank credit facility, simple documentation has been ranked first, followed by low interest rate, quick financing, reputation, period of repayment and service. The study also reveals that technology of the bank has improved tremendously when compared to other aspects like employee relations, adequate credit facilities and helping the rural people.

SMEs in developing countries like India are essential for various reasons. They are the powerful drivers of the economy towards a mode of self-sufficiency and to a position of economic take off. The number of SME units in India increased from 16,000 to around 3,300,000. SMEs have grown in number and the importance of their role increased, with greater accent on vendor development, outsourcing and franchising by large manufacturers to reduce cost and enhance profitability.

Banks and financial institutions have started providing long- and short-term finances not only to large corporates, but also to various sectors of the SMEs. In addition to project finance and long-term loans, banks are providing services, such as overdraft facilities, commodity-based finance, etc. Banks provide these facilities based on the firm's financial soundness, creditworthiness, their cash flows, suppliers and buyers, their net worth and volume of business. As SMEs play a vital role in the economic growth of a country, banks and financial institutions assist them by providing various kinds of finance.

Bank Management Journal, Bank Credit Facilities, Small and Medium Enterprises, SMEs, Bank Credit Facility, Economic Growth, Flexible Strategies, Kaiser-Meyer-Olkin, International Marketplaces, Electronics Sector, Dynamic Markets, Economic Growth.