Micro, small and medium enterprises (MSMEs) are an essential element in Odisha’s economic growth and socio-economic progress, providing jobs, fostering rural entrepreneurship and promoting balanced geographical development. But even with the introduction of government reforms and financial inclusion programmes, MSMEs often face challenges in obtaining credit from public sector banks, especially at the pre-sanction stage of loan disbursement. The first step, which includes documentation, eligibility checks and ground evaluation, is a pivotal factor in determining customer satisfaction and trust in the banking system. The current study examines the levels of satisfaction of MSME borrowers at the pre-sanction stage of loan issuance in public sector banks in Odisha. The research aims to determine the impact of demographic and financial factors, such as age, education and loan amount, on borrowers’ perceptions of fairness, efficiency and transparency in the loan process. Using a descriptive–analytical research design, the study collects primary data through a structured questionnaire and interviews with borrowers across various districts of Odisha. Results show that satisfaction levels are not materially different across age groups, education levels and credit limits, suggesting that most public sector banks share a similar attitude towards lending. This consistency highlights the success of digital banking reforms, process automation and rule-based evaluation systems that have reduced procedural bias and increased transparency. The study also indicates that satisfaction levels are increasingly determined by institutional performance indicators, including timeliness, communication quality and the legibility of documentation, but not by borrower demographics. As a result, the research concludes that the model for achieving procedural parity and consistency in pre-sanction loan processes by public sector banks in Odisha indicates an improvement in inclusive banking. Further improvement in satisfaction should focus on qualitative aspects of service delivery, including staff responsiveness, empathy and the efficiency of active communication. MSMEs, as well as public sector banks, can build long-lasting connections and strong trust by further developing digital infrastructure, feedback systems and strategies to engage borrowers.

MSME satisfaction, pre-sanction loan process, public sector banks (India), borrower perception and trust, banking process transparency

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