Functions of Ifci

Functions of the 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.
• 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.
• In 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.
Functions of IDBI
1) To co-ordinate the activities of other institutions providing term finance

to industry and to act as an apex institution.
2) To provide refinance to financial institutions granting medium and long-
term loans to industry.
3) To provide refinance to scheduled banks or co-operative banks.
4) To provide refinance for export credit granted by banks and financial

institutions
5) To provide technical and administrative assistance for promotion
management or growth of industry.
6) To undertake market surveys and techno-economic studies for the
development of industry.
7) To grant direct loans and advances to industrial concerns. IDBI is
empowered to finance all types of industrial concerns engaged or proposed
to be engaged in the manufacture, preservation or processing of goods,
mining, hotel, industry, fishing, shipping transport, generation or
distribution of power, etc.
8) To render financial assistance to industrial concerns. IDBI operates various
schemes of assistance. E.g., Direct Assistance Scheme, Soft Loans Scheme,
Technical Development Fund Scheme, Seed Capital Assistance Scheme,
Overseas Investment Finance Scheme etc.
Functions of SIDBI:
• SIDBI emerged as a single window operation to meet its financial and

improvement needs as well as to make the MSME sector strong, vibrant,
and globally competitive.
• SIDBI helps financial institutions in lending to small-scale industries so
that they have a healthy financial position and also provides non-
financial assistance to business owners by helping them procure raw
materials.
• SIDBI engages commercial banks and other financial institutions to grant
credit to small-scale industries and encourage credit by small
independent company business units and also provide resource
assistance to them.
• SIDBI also provides venture capital assistance through Venture Capital
Fund, and it also co-promotes state-level venture funds.
• SIDBI conducts surveys in specific geographical locations to determine
the potential of developing MSMEs in the specific area where it is found.
• SIDBI helps in expanding business areas for small-scale industry sector
products in domestic and international markets in partnership with
commercial banks.
• SIDBI also aims to enhance shareholder wealth through modern
technologies and innovative ideas by providing a digital platform. It also
provides services like factoring and leasing to domestic independent
company business units in the small-scale sector.
• SIDBI also provides an additionally timely flow of credit for working
capital as well as term loans to small-scale enterprises in collaboration
with commercial banks.
• SIDBI takes initiatives for modernization and technological upgradation
of existing industrial units to become future units that generate more
wealth and employment.
• SIDBI also acts as a nodal agency for various ministries of the
Government of India :
1) Ministry of MSME.
2) Ministry of commerce and industry.
3) Ministry of Textiles.
4) Ministry of food processing industry,
Functions of ICICI:
1. Providing finance in the form of long-term or medium term loans or

equity participation.
2. Sponsoring and underwriting new issues of shares and other
securities,
3. Guaranteeing loans from other private investment sources.
4. Making funds available for reinvestment by revolving investment as
rapidly as possible.
5. Providing project advisory services i.e. offering advice –
• To private sector companies in the pre-investment stages on
Government policies and procedures, feasibility studies and
joint venture search, and
• To Central and State Governments on specific policy related
issues.

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Functions of the IFCI

1) To co-ordinate the activities of other institutions providing term finance

3) To provide refinance to scheduled banks or co-operative banks.

4) To provide refinance for export credit granted by banks and financial

• SIDBI emerged as a single window operation to meet its financial and

1. Providing finance in the form of long-term or medium term loans or

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