Small and medium enterprises are supposed to play a central role in the drive for economic development of the country. There is however a consensus' that these small and medium enterprises have largely failed to ·deliver on this score. Lack of access to credit from financial institutions has been identified as constituting the greatest clog in the wheel of progress for small and medium enterprises. This research work seeks to appraise the process of analysing credit requests on small and medium enterprises in. the Lagos Metropolis using Bank PHB as a case study. In carrying out this research study, questionnaire was used as the instrument and chi-square also was used for the testing of the hypothesis formulated with the use of non-parametric statistical techniques. The management and staff of Bank PHB PIc was used as the respondents which relevant question was structured to sought respondent's opinion on the credit analysis on small and medium enterprises by banks. It was recommended that a mechanism should be put in place whereby governments at various levels could guarantee SMEs loans availed by banks.