Industrial Finance Corporation Of India

The Industrial Finance Corporation of India(IFCI) was introduced after Independence. The main aim of the Industrial Finance Corporation of India is to help the factories in the industrial sector. It helps the factories take up the various business loans by giving guarantees. This organisation’s sole aim is to strengthen the various industries in India as much as possible.

Industrial Finance Corporation of India studies the industry’s role and how it will affect our national economy and benefit our population; if all these researches give a positive result, our Industrial Finance Corporation of India(IFCI) will grant a loan.

Industrial Finance Corporation Of India history 

Industrial Finance Corporation Of India (IFCI) was set up after Independence in 1948. Industrial Finance Corporation(IFCI) is a government organisation holding 61.02%. It happened in 1995. After the repeal act, the Industrial Finance Corporation Of India (IFCI) became a public limited company under the companies act of 1956. There are many companies under IFCI, such as  My Visit, my Gov, Data.gov.in, India.gov.in, etc.

In all these companies, people invest their money and buy stocks for their profits. Sometimes they are in profit, and sometimes they are in loss. Proper knowledge is the primary condition that is required when one is investing in any company of Industrial Corporation of India; otherwise, some people soon lead to the path of bankruptcy. Its share price also increases very fast and vice versa. Indian Finance Corporation of India also registered with the Reserve Bank of India.

Functions of Industrial Finance Corporation of India

• Only gives loans to the government. Limited industries not to private limited or semi-private limited industries.

• Grant loans to the companies if they are in favour of our national economy
• Help up in setting small scale industries to big scale industries

Activities Of Industrial Finance Corporation Of India

Soft loan Assistance

Provides loans to various companies at a very low-interest rate so that there will be no pressure on the owner to pay the loans and let them focus on the growth of their industries. It always has a positive impact, and an individual’s company will definitely grow.

Promotes Entrepreneurs

It’s a very fast-growing thing in India, “The Entrepreneurs.” They come with a very new idea of their own, which is missing from the market and the thing which can help many people of the Indian Finance Corporation of India keep an eye on such ideas and give loans to them at a very low cost.

Direct financing

• They give rupee loans.
• Sub loans in foreign currency as well.
• Foreign currency loans raised by industries from foreign institutions.
• Rupee loan raised by industries from a scheduled bank or cooperative bank.

Areas of Assistance

• Setting up of new industries
• Making industries expand and become big

• Renovation and Modernization of existing units.

Management Of Indian Finance Corporation Of India

The Indian Finance Corporation of India has 13 board directors and one chairman. The chairman has a crucial role for a long tenure of 3 years in the Indian Finance Corporation. That’s why the chairman gets selected by the government of India after consulting the industrial bank of India.

Industrial Development in Backward Areas

We have often witnessed that villages often lack behind in terms of education, industries, and other basic facilities. Still, the Indian Finance Corporation of India had a plan for them too. They also help backward areas to set up their work.

Subsidised Consultancy

It gives loans to small or new entrepreneurs in a setting of their small industries or helps in making it big.

They believe in the modernization of the industries. That’s why they help industries in backward areas to be equipped with the latest technology.

Defects of Industrial Finance Corporation of India

With good things, some bad things come too Industrial Corporation of India also has some defects.

• Even their rate of interest structure is meagre; still, some companies find it unsatisfactory.
•  They are working very efficiently for the small industries. Still, many small-scale industries are lacking behind in many terms.

The Industrial Finance Corporation of India is still developing. It is not fully formed; that’s also why many industries face a problem.

Conclusion

So after reading all this, we can conclude that the Industrial Corporation of India(IFCI) plays a very important role in the country’s economy as well as the country’s development. It also helps the youth of this country to come up with new ideas and assures them of their success. It is also helping the backward areas by equipping them with the latest technologies. It makes them believe that it’s okay to go with the latest technology.

But it is also very particular about its rules and guidelines too that they never give loans to Private industries limited or Semi-private industries limited.