The purpose of this research article is to have an understanding about the factors influencing the Loan Officers’ choice criteria in predicting Micro Small and Medium scale Enterprises (MSMEs) loans precisely. Descriptive research was followed in the study, a structured questionnaire was developed with the help of established scales adopted from existing literature. The designed questionnaire was then subjected to questionnaire interview method. A sample of 162 bank loan officers in Namakkal District were selected based on purposive non random sampling method. The collected data was then analyzed using stepwise linear regression. The final model was validated using R square value, Variance inflation factor (VIF) and R Square change statistics. The humancapital of the loan officers like educational qualification, relationship building capabilities, exposure to MSMEs, risk behavior, lending experience, problem solving capabilities were considered to be the independent variables in the model and it was found that these factors significantly influence the choice criteria of predicting the business loan of MSMEs precisely. The relative importance of the factors that influence the choice criteria of loan approval were also identified and discussed in this research study. MSMEs are dependent on external sources of finance to support their business, hence before applying for loan it is necessary for the MSMEs to analyze the factors influencing the loan approval decision. This research will be very helpful for the MSMEs to understand howhuman capital and risk behavior of the loan officer influences the choice criteria of loan approval.