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Functions
The IDBI has been established to perform the following functions-
• To grant loans and advances to IFCI, SFCs or any other financial institution by way of refinancing
of loans granted by such institutions which are repayable within 25 year.
• To grant loans and advances to scheduled banks or state co-operative banks by way of
refinancing of loans granted by such institutions which are repayable in 15 years.
• To grant loans and advances to IFCI, SFCs, other institutions, scheduled banks, state co-
operative banks by way of refinancing of loans granted by such institution to industrial concerns for
exports.
• To discount or re-discount bills of industrial concerns.
• To underwrite or to subscribe to shares or debentures of industrial concerns.
• To subscribe to or purchase stock, shares, bonds and debentures of other financial institutions.
• To grant line of credit or loans and advances to other financial institutions such as IFCI, SFCs, etc.
• To grant loans to any industrial concern.
• To guarantee deferred payment due from any industrial concern.
• To guarantee loans raised by industrial concerns in the market or from institutions.

• To provide consultancy and merchant banking services in or outside India.
• To provide technical, legal, marketing and administrative assistance to any industrial concern or
person for promotion, management or expansion of any industry.
• Planning, promoting and developing industries to fill up gaps in the industrial structure in India.
• To act as trustee for the holders of debentures or other securities.

The main objective of IFCI is to provide medium and long-term financial assistance to large scale
industrial undertakings, particularly when ordinary bank accommodation does not suit the undertaking
or finance cannot be profitably raised by the concerned issue of shares.

Industrial Finance Corporation of India (IFCI) is actually the first financial institute the government
established after independence. The main aim of the incorporation of IFCI was to provide long-term
finance to the manufacturing and industrial sector of the country.

Functions of the IFCI:

• First, the main function of the IFCI is to provide medium and long-term loans and advances to
industrial and manufacturing concerns. It looks into a few factors before granting any loans. They study
the importance of the industry in our national economy, the overall cost of the project, and finally the
quality of the product and the management of the company. If the above factors have satisfactory
results the IFCI will grant the loan.