This research examines the difficulty of small loan approval under the micro mortgage segments in DCB Bank. It focuses on Jodhpur's operational and risk management. This study focuses on a mixed–methods approach to analyse the institutional frameworks, borrower profiles and the factors influencing loan sanctioning processes. This data suggests that the DCB Bank demonstrates a structured and efficient underwriting mechanism, several operational challenges, including documentation insufficiencies, complex evaluation criteria and inconsistent borrower financial stability. The findings also reveal substantial opportunities for enhancing financial inclusion through digital transformation, community engagement, and adaptive credit assessment models. This study shows recommendations to make the micro mortgage system more effective and accessible, especially for low-income profiles.