Purpose: The research intends to study the reason(s) that why do co-operative banks finance the SMEs with fewer
formalities or documentation despite the fact that they are smaller institutions than the commercial banks
• Design: To study this, exploratory research design would be used, taking into consideration, primary data would be collected
from the professionals like Bankers
• Finding: Co-operative banks check the business plan, establishment of the business and they consistently check the
profitability of the business. They also rely on the credit ratings, given by the credit agencies and thus, lend to the SMEs with
fewer formalities
• Originality/ Value: Until now, researchers have not looked upon the reason(s) for the fewer formalities carried out by cooperative banks to lend to the SME
