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

IDBISet up in 1947• Long term finance to industries, IFCI, SFC,

ICICI and Refinance Corporation of India

• FunctionsI. 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 requirementsAssistance 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