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State Finance Corporation (SFC) India


Origin Of The State Finance Corporation:

Central government decided to promote the Small Scale Industries and Medium Scale Industries at the state level by establishment of State Finance Corporation under a special Act. It is called as State Finance Corporation Act 1951. According to this act, state government have been empowered to set up State Finance Corporation. At present these are 18 State Finance Corporation in India.

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Capital Of State Finance Corporation

State Finance Corporations will have a paid up capital from Rs. 50 lakhs to Rs. 5 crore which will be contributed by the respective state government, Schedule Commercial Bank, Reserved Bank of India and various financial institutions.

Objectives Of State Finance Corporation

• To provides financial assistance to Small scale industries

• To promote tiny, village and cottage Industries

• To provides infrastructure facilities to SSI

Functions Of State Finance Corporation

• Long term loans to Small Scale Industries.

• Refinance from Reserve Bank of India and Industrial Development Bank of India

• Assistance from International Development Agency (IDA) and foreign currency hire of credit from the IDBI

Management Of State Finance Corporation

State Finance Corporation are managed by Board of directors constituted by the respective State Government, Central Government, Reserve Bank of India, Schedule Commercial Bank and Financial Institutions as nominated directors to the State Finance Corporation.

State Finance Corporation (SFC) India State Finance Corporation (SFC) India Reviewed by Ikpokolo Francis on Monday, November 27, 2017 Rating: 5

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