Banks and financial institutions primarily geared towards serving larger urban businesses are in general neither well motivated nor well equipped to serve SMEs in dispersed locations far off from branches. Besides higher risks in SME lending, they also find SME loan administration costlier. Commercial banks are not interested to finance SMEs because of the high risk and high supervision cost. In these circumstances SMEs find it hard to get credit for inputs procurement and other expenses. SMEs often also have to sell their produces on credit, further burdening their precarious finances.