Discuss about IFCI, IDBI & SIDBI

Pyari Shameerkhan

IFCI Industrial Finance Corporation of India

 The IFCI was established in 1948 under an Act of Parliament with the basic object of providing industrial finance(medium & long term credit)to industrial concerns especially to small scale industries in India.

Tips

IFCI established in 1948, is the First Development Bank of India.

 This institution was transformed into a corporation from 21st May, 1993 with a view to provide great flexibility to respond to the needs of the rapidly changing financial system of India

Main Activities
The main activities includes 1.Project Financing, 2.Financial services 3.Comprehensive corporate advisory services.

New promotional Schemes

Consultancy fees, subsidy schemes for assisting small scale entrepreneurs in marketing sector Interest subsidy schemes for women entrepreneurs. Encouraging the modernization of tiny, small & medium scale industries.

SIDBI
Small Industries Development Bank of India

 The SIDBI was set up in 1990 by passing Small Industries Development Bank Act. It helps for the promotion, financing & development of industry in the small scale sector.

 The aim of the SIDBI is also to coordinate the functions of the financial institutions, namely State financial Corporations, State Industrial Development Corporation, State Small Industries Corporations, Scheduled Banks, State Cooperative Banks etc..

 Engaged in the promotion, financing & developing the small scale industries.

SIDBI in Business Term

SIDBI consists of small scale industrial units, which contribute significantly to the national economy in terms of production, employment, & exports.

Objectives
Four Basic Objectives 1. Financing 2. Promotion 3. Development 4. Co- ordination

Functions Of SIDBI
Grant loans & advances to any SFC, SIDC,State Cooperative Bank, repayable within a period not exceeding 25years. Accept discount or rediscount bills of exchange/promissory notes made, drawn accepted or endorsed by small scale industrial concerns.

 Finance export from or import into India of machinery equipments or other assets. Subscribe to or purchase shares, bonds or debentures of any SFC, SIDC, State or small Industrial Corporation, National Small Industrial Corporations, etc..

 Provide technical & financial consultancy, merchant banking and other services.

IDBI
Industrial Development Bank of India

 It was established in 1964 by the Indian Government under an act of the Indian Parliament. The principal objective of IDBI is providing term finance for fixed asset formation in industry.

Functions of IDBI
The IDBI provides assistance to the small scale sector through its scheme of refinance & bills rediscounting scheme. The financial assistance has been indirect in the form of refinancing of loans granted by the commercial banks & the SFCs

 The IDBI has also introduced the Single Window Assistance Scheme for grant of term loans & working capital assistance to small, tiny & medium scale enterprises.