State Finance Corporation

IFCI – Deals with – Large public limited

companies and co-operative societies
which are engaged in manufacturing,
mining, guiding generation and distribution
of electricity
• SFCS – Assist small and medium enterprises
• SFCs Act of 1951
• Authorized capital Rs.50 Lakhs to Rs.5 Cr.
Contributed by
– State Government
– Reserve Bank of India (RBI)
– Scheduled Banks
– Co-op. Banks
– Insurance Companies
• Functions:
– Guarantees loan – repayable in 20 yrs
– Underwriting
– Grants loans and advances
– Maximum 20 yrs repayment
– Subscribes debentures floated by
industrial concerns
• SFCs can not subscribe to shares/stocks
• SFC can grant maximum of Rs.10 crores –
20 years

1980-81 2003-04
370 Cr 1130 Cr Sanctioned
250 Cr 890 Cr Disbursed
 IDBI
Set up in 1947
• Long term finance to industries, IFCI, SFC,
ICICI and Refinance Corporation of India
• Functions
I. Direct Assistance:
– Project loans
– Underwriting
– Direct subscription to secutiries
– Soft loans
– Technical refund loans and equipment finance loan
– Guarantees loan raised from financial institution
 IDBI can also accept discount or
rediscount bona fide commercial bills or
promissory notes of Industrial concern
II.Indirect Assistance:
– Refinance term loan of 3 to 10 years given by
scheduled banks Co-op. Banks and IFCI and
SFCs
– Refinance by port credit
– Subscribes stocks, shares, Debentures of
IFCI, SFCs
III.Special Assistance:
For industrial concerns who do not get
loans in normal course.
IV. Foreign Currency requirements
Assistance to Backward Areas to Small Scale units
on softer term
Refinance facility by IDBI
Loans SFCs, IFCI, Participates in refinancing
Assistance to Small Scale Sectors
Transport operators
Small industries Development Bank of
India (SIDB) started in 1989
– subsidiary of IDBI
Loans 1980-81 2003-04
Sanctioned 1280 5830
Disbursed 1010 4410
Small Industries Development Bank of India
(SIDBI)
April 1990
Authorized Capital Rs.250 Cr
Subsidiary of IDBI
Principle financial institution for
promotion, financing and development of
small scale industries in the country more
than 870 institutions eligible for loans from
IDBI
FUNCTIONS:
– Refinance facility of loans and advances
extended by the primary heading institution
to small scale units.
– Discounts and rediscounts bills
– Extends seed capital/soft loans assistance
under National equity fund, Mahila Udyam
Nidhi.
– Divert and refinance assistance for financing
of experts of Small Scale Sectors
– Services like leasing, factoring in Small
Sector
– Financial support to State Small Industries
Development Corporation for providing
leasing, hire purchase and marketing
supports
• Large flow of funds of Small Sector
• Marketing Assistance
• Employment Generation
• Checking to urban areas
PROGRESS:
– Single Window Scheme
• Rehabilitation
• Modernization
• Tech. upgradation
– Automatic Refinance Scheme upto Rs.50
Lakhs
– Equipment financing assistance to well run
Small Units for technology
upgradation/modernization
– Helping workers to by looms
– Venture capital assistance

Loans 1990-91 2003-04

Sanctioned 2410 Cr 8220 Cr
Disbursed 1840 Cr 4410 Cr