Abstract : India is the second most populous country in the world next to China. The Micro, Small and Medium Enterprises (MSME) sector contributes significantly to industrial, technological, economic and regional development in developing and developed countries. Timely and availability of adequate finance is crucial component for survival and growth of SMEs. A convenience sample survey of 135 SMEs across southern Rajasthan from marble and minerals industry was conducted to analyze the awareness level of SMEs regarding various credit facilities provided by banks, difficulties faced by SMEs and impact of bank finance on their financial performance. The study also examined the bankers' point of view on SME financing. For this a survey of 31 bankers at different levels in various banks was conducted which assisted in examining various problems faced by bankers in assessing SMEs' creditworthiness, various factors considered while considering SME loan proposal and main reasons for turning down SME loan proposals.