The Industrial Finance Corporation of India (IFCI) was established in 1948 to provide medium and long-term financing to industry. It provides loans, subscribes to debentures, and provides guarantees to industrial companies. IFCI also underwrites securities and has subsidiaries that assist with financing. The Industrial Credit and Investment Corporation of India (ICICI) was established in 1955 to develop small and medium private industries and was later merged with ICICI Bank. State Financial Corporations (SFCs) promote small and medium industries in each state and provide loans, underwrite shares, and guarantee other loans for industrial development.

1. Unit-6 Resource
Mobilization
-Shwetha.M

2. IFCI-Industrial Finance
Corporation of India

3. Overview
IFCI Ltd (IFCI) was set up as a Statutory Corporation (“The Industrial Finance Corporation of
India”) in 1948 for providing medium and long term finance to industry..
In 1993, after repeal of the Industrial Finance Corporation Act, IFCI became a Public Limited
Company, registered under the Companies Act, 1956.
IFCI is also registered with the Reserve Bank of India (RBI) as a Systemically Important Non-
Deposit taking Non-Banking Finance Company (NBFC-ND-SI) and is also a notified Public
Financial Institution under Section 2(72) of the Companies Act, 2013.

4. Main Functions Of IFCI:
● First, the main function of the IFCI is to provide medium and long-term loans and advances
to industrial and manufacturing concerns. It looks into a few factors before granting any
loans. They study the importance of the industry in our national economy, the overall cost of
the project, and finally the quality of the product and the management of the company. If the
above factors have satisfactory results the IFCI will grant the loan.
● The Industrial Finance Corporation of India can also subscribe to the debentures that these
companies issue in the market.
● The IFCI also provides guarantees to the loans taken by such industrial companies.

5. Unit-6 Resource
Mobilization
-Shwetha.M

6. IFCI-Industrial Finance
Corporation of India

7. Overview
IFCI Ltd (IFCI) was set up as a Statutory Corporation (“The Industrial Finance Corporation of
India”) in 1948 for providing medium and long term finance to industry..
In 1993, after repeal of the Industrial Finance Corporation Act, IFCI became a Public Limited
Company, registered under the Companies Act, 1956.
IFCI is also registered with the Reserve Bank of India (RBI) as a Systemically Important Non-
Deposit taking Non-Banking Finance Company (NBFC-ND-SI) and is also a notified Public
Financial Institution under Section 2(72) of the Companies Act, 2013.

8. Main Functions Of IFCI:
● First, the main function of the IFCI is to provide medium and long-term loans and advances
to industrial and manufacturing concerns. It looks into a few factors before granting any
loans. They study the importance of the industry in our national economy, the overall cost of
the project, and finally the quality of the product and the management of the company. If the
above factors have satisfactory results the IFCI will grant the loan.
● The Industrial Finance Corporation of India can also subscribe to the debentures that these
companies issue in the market.
● The IFCI also provides guarantees to the loans taken by such industrial companies.

9. ● When a company is issuing shares or debentures the Industrial Finance Corporation of
India can choose to underwrite such securities.
● It also guarantees deferred payments in case of loans taken from foreign banks in foreign
currency.
● There is a special department the Merchant Banking & Allied Services Department. They
look after matters such as capital restructuring, mergers, amalgamations, loan
syndication, etc.
● It the process of promoting industrialization the Industrial Finance Corporation of India
has also promoted three subsidiaries of its own, namely the IFCI Financial Services Ltd,
IFCI Insurance Services Ltd and I-Fin. It looks after the functioning and regulation of
these three companies.

10. ICICI-Industrial Credit and Investment
Corporation of India

11. Industrial Credit and Investment Corporation of India (ICICI) was established in 1955 as
public limited company under Indian Company Act, for developing medium and small
industries of private sector.
Initially its equity capital was owned by companies, institutions and individuals but at
present its equity capital has been owned by public sector institutions like—Banks, LIC,
ect., and its associate companies.
In March 2002, the ICICI was merger with the ICICI Bank and created a first universal
bank in India. With this merger, ICICI does not exist any more as a development
financial institution.

12. Objectives Of ICICI:
The important objectives of the ICICI are as follows:
(i) To provide loans to industrial projects in private sector
ii) To stimulate the promotion of new industries.
(iii) To assist the expansion and modernization of existing industries.
(iv) To provide Technical and managerial aid to increase production.

13. SFCs-State Financial Corporation

14. Overview:
The State Finance Corporations (SFCs) are an integral part of institutional
finance structure of a country. Where SEC promotes small and medium
industries of the states. Besides, SFC help in ensuring balanced regional
development, higher investment, more employment generation and broad
ownership of various industries.

15. The various important functions of State Finance Corporations are:
(i) The SFCs provides loans mainly for the acquisition of fixed assets like land, building, plant, and machinery.
(ii) The SFCs help financial assistance to industrial units whose paid-up capital and reserves do not exceed Rs. 3
crore (or such higher limit up to Rs. 30 crores as may be notified by the central government).
(iii) The SFCs underwrite new stocks, shares, debentures etc., of industrial units.
(iv) The SFCs grant guarantee loans raised in the capital market by scheduled banks, industrial concerns, and
state co-operative banks to be repayable within 20 years.
Functions Of SFCs:

17. ● When a company is issuing shares or debentures the Industrial Finance Corporation of
India can choose to underwrite such securities.
● It also guarantees deferred payments in case of loans taken from foreign banks in foreign
currency.
● There is a special department the Merchant Banking & Allied Services Department. They
look after matters such as capital restructuring, mergers, amalgamations, loan
syndication, etc.
● It the process of promoting industrialization the Industrial Finance Corporation of India
has also promoted three subsidiaries of its own, namely the IFCI Financial Services Ltd,
IFCI Insurance Services Ltd and I-Fin. It looks after the functioning and regulation of
these three companies.

18. ICICI-Industrial Credit and Investment
Corporation of India

19. Industrial Credit and Investment Corporation of India (ICICI) was established in 1955 as
public limited company under Indian Company Act, for developing medium and small
industries of private sector.
Initially its equity capital was owned by companies, institutions and individuals but at
present its equity capital has been owned by public sector institutions like—Banks, LIC,
ect., and its associate companies.
In March 2002, the ICICI was merger with the ICICI Bank and created a first universal
bank in India. With this merger, ICICI does not exist any more as a development
financial institution.

20. Objectives Of ICICI:
The important objectives of the ICICI are as follows:
(i) To provide loans to industrial projects in private sector
ii) To stimulate the promotion of new industries.
(iii) To assist the expansion and modernization of existing industries.
(iv) To provide Technical and managerial aid to increase production.

21. SFCs-State Financial Corporation

22. Overview:
The State Finance Corporations (SFCs) are an integral part of institutional
finance structure of a country. Where SEC promotes small and medium
industries of the states. Besides, SFC help in ensuring balanced regional
development, higher investment, more employment generation and broad
ownership of various industries.

23. The various important functions of State Finance Corporations are:
(i) The SFCs provides loans mainly for the acquisition of fixed assets like land, building, plant, and machinery.
(ii) The SFCs help financial assistance to industrial units whose paid-up capital and reserves do not exceed Rs. 3
crore (or such higher limit up to Rs. 30 crores as may be notified by the central government).
(iii) The SFCs underwrite new stocks, shares, debentures etc., of industrial units.
(iv) The SFCs grant guarantee loans raised in the capital market by scheduled banks, industrial concerns, and
state co-operative banks to be repayable within 20 years.
Functions Of SFCs: