Non banking financial institutions

NBFC are the financial institutions which does not accept a deposit but it will end the financial support and loan to the needy customers and help them in assisting them financially.

There are many non banking financial institutions I am going to describe about the four major financial institutions which are industrial financial corporation of India IFSC and state financial corporation of India SFC and industrial development Bank of India IDBI and the last one is export and import bank EXIM.

The main objective of IFCI grant loans and advances to the industry and  help for entrepreneurial development by assisting them in financial matters as well as they help in industrial development in backward areas by assisting them in financial issues.

Similarly state financial corporations are the integral part of financial structure of the country where they promote small and medium industries of the state the main objective of sfc is to provide medium and long term finance to the small industrial entrepreneurs when they are not getting the loans from bank sfc will provide them the loans. dresses 3 satisfying the medium and long-term capital requirement they also acts as the underwriters of shares debentures and bonds and also subscribe to the same they provide assistance for the new as well as the existing industries.

Industrial development Bank of India also provides financial assistance by granting loans and advances to IFCI and sfc by the way of refinancing the loans granted by such institution which must be payable within 25 years similarly the State cooperative banks and scheduled banks have to repay the loans within 15 years. even IDBI will underwrite and subscribe to the shares and debentures and bonds of those industrial concerns they provide technical and marketing assistance.

The last one is exim Bank which is called import export Bank of India which was established in 1982 the main objective of exim Bank is to solve the problems of exports in India they pay specific attention to the export of capital goods and encourage the joint ventures as well as international and merchant banking. they extend the buyers credit and lines of credit in order to encourage export and import domestic and foreign markets for resources and undertake the development and financial activities in the export sector their finances for the import and export of goods and service from india and also for countries other than India they also help for financing of important export of machine on lease or hire purchase basis.