IFCI Role and Functions

Industrial Finance Corporation of India (IFCI) is actually the first financial institute The government formed upon independence. The primary goal of establishing IFCI was to offer long-term financing to the country’s manufacturing and industrial sectors.

Functions of IFCI

First, the IFCI’s primary duty is to offer medium and long-term loans and advances to industrial and manufacturing companies. It considers many aspects before giving any loans. They investigate the industry’s relevance to our national economy, the entire cost of the project, and, lastly, the product’s quality and corporate management. If the aforementioned parameters show good outcomes, the IFCI will approve the loan.

The Industrial Finance Corporation of India may also subscribe to the debentures that these firms issue in the market.

The IFCI also guarantees loans received by such industrial businesses.

When a corporation issues shares or debentures, the Industrial Finance Corporation of India may opt to underwrite such instruments.

It also insures delayed payments on loans from overseas banks in foreign currency.

There is a separate department called Merchant Banking & Allied Services. They are in charge of capital restructuring, mergers and amalgamations, loan syndication, and other related issues.

It is a method of encouraging industrialization. The Industrial Finance Corporation of India has also promoted three of its own subsidiaries: IFCI Financial Services Ltd, IFCI Insurance Services Ltd, and I-fin. It oversees the operation and regulation of these three enterprises.

The firm provides loans and advances to industrial companies.

• Loans are granted in both rupees and foreign currency.
• The company underwrites the issuance of stocks, bonds, and other securities.
• The company may only provide loans to public limited businesses and cooperatives, not private limited corporations or partnership enterprises.
• The Soft Loan Assistance initiative helps small and medium-sized enterprises create technologies via in-house research and development.
• IFCI offers financial assistance for Entrepreneur Development Programs (EDPs) run by various organizations throughout India. In collaboration with the Entrepreneurship Development Institute of India.
• IFCI promotes industrial development in backward regions via concessional financing.
• The IFCI provides subsidized advice for small entrepreneurs to help them cover project costs.

(ii) Promoting Ancillary Industries.

(iii) Conduct the market research.

(iv) Reviving Sick Units.

(v) Implementing modernization.

(vi) Pollution control in factories.

In 1973, the IFCI established the Management Development Institute to enhance professional management practices. It developed the Development Banking Centre to train managers and employees in industrial, commercial, and development banks.