Functions of IFCI

The IFCI is the leading company in the transformation of the industries all over the country, improving the promotion of export and taking care of the sunrise industries in a very business-friendly way. As mentioned in the full form of IFCI, this agency undertakes financial support and assistance to the entrepreneurs, thereby encouraging them in building a career of their own in the industrial world. The business individuals belonging to the Scheduled Caste (SC) are the ones that require significant financial support and assistance for starting up an industry. Thus, the IFCI offers loans to these individuals in society and helps them with various ideas regarding the business.

Some Basic Information About IFCI

• The full form of IFCI is the ‘Industrial Finance Corporation of India’
• According to the full form of IFCI, the IFCI is an agency that issues loans for financial support to the industries
• IFCI is the first institution of finance established in India
• The IFCI has been in existence for 70years and has worked on some tremendous projects such as Raichur Power Corporation, NRSS Transmission, GMR Goa International Airport, Adani Mundra Ports and Salasar Highways
• The IFCI corporation borrows the finance for the entrepreneurs in the industrial growth economy from the Reserve Bank of India (RBI), World Bank and the Central Government to increase the resources
• The current chairman of IFCI is Shri Manoj Mittal
• The current chairman of IFCI was appointed by the Appointments Committee of the Cabinet (ACC) for some time of 3 years

The Composition of IFCI

• The composition of IFCI includes
•  Managing director and CEO
•  Director
•  General manager
•  Chief vigilance officer
•  CFO
•  Co. Secretary & Compi. Officer
• Chief risk officer
•  Chief general manager
• Deputy managing director
• The services and facilities given by the IFCI can fall into three segments:

1. Project Finance
2. Financial services
3. Promotional services

The General Functions of IFCI

1. The primary function of IFCI is to grant short-term or long-term financial support and assistance to the industries, significantly when the other banks do not help the new entrepreneurs by financing them for the required needs.
2. The IFCI officials must look into a few matters before sanctioning loans to the entrepreneurs to avoid inconvenience in the future.
3. The function of IFCI officials is to analyze the importance of a particular industry in the Indian economy. What are the benefits of financing a particular industry? Is it helpful for the growth of the economy? What will be the exact cost needed for the completion and the extra amount to be kept aside for emergencies while completing a project? Is the quality of the product produced by the industry acceptable by the public and good? Are the management skills of the company owner good so that there won’t be any losses?
4. The function of IFCI is also to support the bonds that the applied organizations advertise in the market.
5. The IFCI also promotes industrialization, and while promoting it, the IFICI promotes its own three subsidiaries, which are I-Fin, IFIC Insurance Service Ltd and lastly the IFCI Financial Services Ltd.
6. When an organization issues bonds or shares, the IFCI can choose to indulge in the capitalization of such safety.

The Functions of IFCI Regarding Loans

• The IFCI contains an exception department called the Merchant banking &Allied Services Department, this department takes loan syndication, mergers, amalgamations etc., into its own hands
• The IFCI issues loans along with required necessities for industrial purposes
• This issuing of loans should be in rupees and foreign currencies both as required by the entrepreneurs
• The IFCI also finances the issue related to the stocks, shares etc
• There is a drawback in IFCI that it only provides finances to public companies and not to private companies or partnership organizations
• The people can repay the loans granted by the IFCI for industrial purposes in the span of 25years
• The Central Government of India undertakes the loans sanctioned by the IFCI
• The IFCI represents the Central Government when the finance is being sanctioned for manufacturing and industrial purposes
• The IFCI can also guarantee finance from any bank in a foreign country

Conclusion

The IFCI organization is a Government company that was established in the year 1948 when the economy of India was low. Since then, the IFCI has helped many entrepreneurs develop, manufacture, plan, and promote their industries. The IFCI is also listed in the National Stock Exchange Ltd (NSE) and Bombay Stock Exchange Ltd (BSE). The IFCI’s primary function is to provide required loans to meet up the needs of the project from the Central Government. The IFCI has provided various offers, and they also customize the plan according to the customer and come up with a straightforward way of starting up an industrial business.