Answer:
Their criteria for approving a loan are much less stringent than those for larger banks.
Explanation:
Smaller banks are banks that give financial inclusion to some sectors in the economy that are not operated by other banks, such as small company units, small and marginal farmers, micro, sector entities that are not organized and small business.
The principal reason why people approach smaller banks for a loan is that their criteria for approving a loan are much less stringent than those for larger banks.
