Role of State Financial Corporation in Small Scale Industry
KEGEES Journal of Social Science, Vol. 2, No. 2, July 2010
Posted: 8 Jun 2011
Date Written: July 7, 2010
The SFCs are playing a key role in the development of small and medium enterprises in the respective states in tandem with the national priorities. During the last decade SFCs assistance to business enterprises has undergone a considerable acceleration. The present paper is based on the analysis of the performance of Haryana, Himachal and Delhi Financial Corporation in terms of magnitude of loan sanctions and disbursal to small-scale sectors. It is found that Delhi Financial Corporation has committed to support the small-scale industry sector by earmarking 98.18% of its funds for the SSI sector. Like wise Delhi financial Corporation and Haryana Financial Corporation have also been pioneers in the development of the small-scale industrial sector. These corporations have financed the small-scale sector as much as 87% of its resources. The efforts of the State Financial Corporations in various spheres to fulfill social obligations of the state are creditable. However, the corporations should have done more to improve the small-scale industry.
Keywords: small-scale industry, loans, refinancing
JEL Classification: A1
Suggested Citation: Suggested Citation