The Government and the financial institutions are very keen on the promotion and development of small-scale industries which is capital sparing and labor-intensive sector. The shortage of finance affects the ability of the small units severely. Every kind of problem, whether it may be raw material, power, transport or marketing faced by an entrepreneur in its ultimate analysis turns out to be a problem of finance. The small industry gets elbowed out by the large and medium scale industries in the procurement of bank finance and institutional credit. A serious problem which is hampering small-scale sector is its sickness. Many small units have fallen sick due to one problem or the other. Some aggregate economic behaviors of the country such as growth in Gross National Product, availability of credit, the volume of the money supply, capital market activity or level of investment and price level fluctuations, may have an important bearing on industrial sickness in the country. The crux of the problem is very often that of finance. Small Scale Industries are very poor and have little to offer as security for raising finance. In this background, the need for financial assistance to Small Scale Industry has become desirable. Government and financial institutions are providing various opportunities and various financial assistance to small-scale industries right from their inception for their growth and development but do this assistance have a real impact on the growth and development of small-scale industries is the real aspect which needs to be analyzed. Accordingly, the study is an attempt to investigate the impact of financial assistance provided to small-scale Industries in Chennai city