Question

Which of the following financial institutions is/are giving long-term loans to businesses.

• A. IDBI
• B. SIDBI
• C. IFCI
• D. All of the above

Answer 1

The correct option is D All of the above

IDBI-

• Full form of IDBI is industrial Development Bank of India.

• It is an Indian government owned financial service company which was earlier a public financial institution till year 2004 but thereafter it was transformed into a bank.

• It is mainly formed for granting loans and advances to industrial concerns for fulfilling their long-term needs.

• Hence, IDBI is called as a leader, coordinator and innovator in the field of industrial financing.

SIDBI-

• SIDBI is abbreviated form of Small Industries Development Bank of India.

• It is wholly owned subsidiary of IDBI which is mainly involved in providing direct, indirect and micro finance facilities to small scale industries for establishing and operating their business.

IFCI-

• IFCI stands for Industrial Finance Corporation of India.

• It is a first development financial institution which is formed to fulfill long-term needs of the industrial sectors.

• Its main objective is to provide long-term and medium-term credits to the industrial concern in India easily.