IFCI is a leading non banking financial institution which was established on the 1st of July, 1948 right after Independence and has an illustrious history of its own. India’s capital market was underdeveloped post independence and there was a huge demand for capital even though the number of providers was very low. Underwriting firms and merchant bankers were present only in limited numbers and commercial banks could not offer long term industrial finance significantly. As a result, IFCI was founded by the Government of India as the first Development Financial Institution in India to cater to long term finance requirements of the industrial sector.

About IFCI

The newly established DFI was offered access to low cost funds through the Central Bank’s Statutory Liquidity Ratio or SLR which enabled it to offer advances and loans to corporate borrowers are concessional rates.

The IFCI constitution was changed in the year 1993 and it became a company from a statutory corporation. The name of the company also changed to IFCI Limited from October 1999. IFCI has achieved a steady financial revival with cooperation and support from all stakeholders and is now positioning itself as a quality solution provider in the industrial domain. The bouquet of IFCI financial services majorly encompasses lending to infrastructure and industrial sectors and it aims at enhancing organizational value through improved realization of nonperforming assets or NPAs and also at unlocking of the value of its investment portfolio including real estate assets and unquoted investments.

IFCI’s contribution to the national economy

IFCI serviceshave contributed hugely towards the economic development of the entire nation. IFCI is credited for playing a vital role in the development of textile and sugar cooperatives along with working as a nodal agency for both these sectors. It has promoted TCOs (Technical Consultancy Organizations) in less developed states for offering services to promoters of SMEs. It has also offered assistance to women entrepreneurs and self employed youth as part of its Benevolent Reserve Fund and Interest Differential Fund. It has founded the ICRA for credit assessment rating, Tourism Finance Corporation of India (TFCI) for hotel and tourism industry promotion and the Management Development Institute (MDI) along with the Institute of Leadership Development (ILD). It is also behind the Rashtriya Gramin Vikas Nidhi (RGVN) for supporting and developing voluntary agencies in rural and urban upliftment in the northeast and east.

The organization has also promoted the Stock Holding Corporation of India Limited, Discount and Finance House of India Limited, OTCEI, National Stock Exchange (NSE), Securities Trading Corporation of India, GIC Housing Finance Limited, LIC Housing Finance Limited and Biotech Consortium India Limited (BCIL). IFCI became a Government undertaking from the 7th of April, 2015. The Government has also entrusted a venture capital fund of INR 200 crore for scheduled castes to IFCI for promoting entrepreneurship amongst the scheduled castes and providing concessional finance to them. IFCI is also the designated Governmental nodal agency for Scheme of Credit Enhancement Guarantee for Scheduled Caste Entrepreneurs which was announced in March 2015. There are several other IFCI loan schemes which are tailored to provide necessary assistance to economically weaker sections of the society.

IFCI loans

Competitive IFCI lending rates attract several customers and the product mix varies from one industry segment to another. IFCI customizes financial products to maximize overall satisfaction. Domain knowledge is a key differentiator here and this is what makes it products innovative and different from regular counterparts.

The portfolio of IFCI Debt productsincludes the following:

  • Medium Term Loans for Project Financing for new infrastructure and industrial projects, technology upgradation, business expansion, modernization ventures, corporate requirements, R&D expenditure, long term working capital requirements, acquisition financing, structured products, securitization of debt, etc.
  • Short Term Loans are offered for pre-operative project expenditure, temporary cash flow mismatch, corporate purposes, warrant purchases, subscriptions to rights issues, working capital gap funding pending sanction by banks, meeting cost overrun in projects, refinancing high cost debt and more.
  • Long Term Loans are offered for more than 8 years in infrastructure projects and manufacturing industries. Term loans are selectively provided in other sectors based on strong ratings. IFCI project loans are also offered for meeting requirements of Greenfield projects along with modernization/expansion projects across multiple industries.

Other Loans- There are several IFCI Loans against future lease rentals on offer along with IFCI loan against shares for top rated corporate organizations. 

Talk to Our Experts

Enable updates through WhatsApp