Which one of the following is the main objective of IFCI ?

IFCI (Industrial Finance Corporation of India) is the first most developmental financial institution set up by the Government of India on July 1, 1948. IFCI is a Non-Banking Financial Company in the public sector.

IFCI:

• The main aim of IFCI was to provide long-term finance to the manufacturing and industrial sector of the country.
• The main objective of IFCI is to provide medium and long-term financial assistance to large-scale industrial undertakings, particularly in those circumstances in which banking accommodation is inappropriate or a resource to the capital market is impracticable i.e. finance could not be raised by the concerned issue of shares.

Therefore, to provide medium and long-term financial assistance to industrial undertakings, particularly in those circumstances in which banking accommodation is inappropriate or a resource to the capital market is impracticable is the main objective of IFCI.

Functions of IFCI:

• The corporation grants loans and advances to industrial concerns.
• The granting of loans must be both in rupees and foreign currencies.
• The corporation underwrites the issue of stocks, bonds, shares, etc.
• The corporation can grant loans only to public limited companies and co-operatives but not to private limited companies or partnership firms.