Enabling factors to small and medium enterprises access commercial bank credit: a case Study of CRDB bank in Dar es Salaam

The purpose of this study was to assess and identify problems limiting access of commercial banks financing services to SMEs sector. Some SMEs and CRDB bank in Dar es Salaam were studied. Data were collected from primary and secondary sources through questionnaires that were administered to various respondents including the SMEs owners or managers, bank managers, supervisors, officers and credit personnel. The findings have confirmed the problem of access of commercial bank financing services to SMEs. The problems were not only availability of information, possession of legal valid collateral, managerial competency, and firm size (formalized) but also experience of the owner – manager of the firm, business market viability, sound mind as well as business plans. The commercial banks have not done enough to attract SMEs due to the existence of unnecessary bureaucracy while processing loans. This study contributes the formulation of better credit access policies and profits to commercial banks in Tanzania.