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also undertake various incentive schemes for state governments. For refinancing, IDBI helps it. They
provide it using the term loans.

Furthermore, SIDC uses bonds to borrow the amount. They also accept the deposits to fund their
resources.

IIBI ( INDUSTRIAL INVESTMENT BANK OF INDIA)

Its sole purpose was to rehabilitate poorly performing industrial companies. Functions: - It provides a
wide range of products and services as specified below. - Assistance in term-loan for project finance. -
Backing the financing of working capital or other short term loan to companies.

1. The Industrial Investment Bank of India Ltd. (IIBI) was formed by transforming the Industrial
Reconstruction Bank of India (IRBI).
2. It was set up by IDBI at the instance of the Government of India in April 1971 for rehabilitation
of sick industrial companies.
3. IRBI was incorporated under the Companies Act, 1956 and renamed as the Industrial
Investment Bank of India Ltd. in March 1997.

Functions: IIBI offers a wide range of products and services such as:

1. Term-loan assistance for project finance.

2. Short duration non-project asset – backed financing working capital/ other short term loans to
companies.

3. Equity Subscription Asset Credit.

4. Equipment finance.

5. Investments in Capital Market and Money market instruments

TFCI –TOURISM FINANCE CORPORATION OF INDIA

The main objective of TFCI is to promote financial assistance to tourism related activities/projects.
Guarantee of deferred payments and credit raised abroad.

The main object of setting-up the specialised financial institution was to expedite the growth of tourism
infrastructure in the country by providing dedicated line of credit on long term basis to tourism related
projects in the country.

Tourism Finance Corporation of India was set up a specialized all India Financial Institution to
financing/funding requirements of Tourism and Hotel industry. It was sponsored by IFCI.