Question

The IFCI granted credit assistance to __________.

• A. Public limited companies
• B. The corporation grants loans and advances to industrial concerns.
• C. Small and medium industries
• D. Both (A) and (B)

Answer 1

The correct option is B The corporation grants loans and advances to industrial concerns.

The government of India set up the Industrial Finance Corporation of India (IFCI) in July 1948 under a special Act. This is the first financial institution set up in India with the main object of making medium and long-term credit to industrial needs.
The functions of the IFCI base are as follows:-

1) The corporation grants loans and advances to industrial concerns.

2) Granting of loans both in rupees and foreign currencies.

3) The corporation can grant loans only to public limited companies and co-operatives but not to private limited companies or partnership firms.

4) Providing credit assistance to co-operative engaged in manufacturing, mining, and generation and distribution of electricity.

Hence, option (B) is the correct answer.