6. Institutions are
District Industries Centre (DIC)
Small Industries Services Institute
(SISI)
Entrepreneurship Development
Institute (EDI)
Small Industries Development
Organization (SIDO)
7. Association of Women Entrepreneurs of
karnataka (AWAKE)
Technical Consultancy Organizations
(TCO)
Technical Consultancy Services
Organization of Karnataka (TECSOK)
Khadi and Village Industries Commission
(KVIC)
8. State Financial Corporations (
SFCs)
To overcome the financial hurdles of
SSIs in the country, Government of
India has established SFC in each
state .
According to the provisions of the
State Financial Corporations Act,
1951.
9. Specific functions of SFCs:
Giving loans to small and medium scale
industries.
Grant loans to industrial concerns
(repayable within a period not exceeding 20
years)
10. Loans are extended to
manufacturing concern
food processing
hotel industry
repair and services
hospitals
tourism services
11. Financial support is also provided for
Purchase of machinery
modernization
Women Entrepreneur
12. There are at present 18 SFCs and almost
every state has a financial corporation of
its own.
13. Financial Assistance from Karnataka State
Financial Corporation( KSFC):
KSFC extending financial assistance to
entrepreneurs, service sectors like hotels,
industrial estates, hospitals , nursing homes
etc.
KSFC finances up to Rs. 200 lakhs for
partnership, sole proprietor firms
Rs. 500 lakhs for companies and co-
operative societies.
14. KSFC also provide facilities like
hire purchase assistance
merchant banking facilities
underwriting of shares
bill discounting etc…
15. Few schemes of KSFC to SSI
sector:
Loan schemes for commercial complexes
Loan scheme for Development of Industrial
Estates
Loan scheme for Hospitals, Nursing homes
and Medical Stores
Loan scheme for transport industry
Loan scheme for Maintenance and
construction of roads.
16. Financial Assistance through Small Industries
Development Bank Of India ( SIDBI)
SIDBI was established on April 2nd
,1990.
It is the principal financial Institution for
the promotions, Financing and
Development of industries
17. Objectives of SIDBI:
Setting up of new projects
Expansion ,diversification, modernization
Technology upgradation, quality improvement
,rehabilitation of sick units
Strengthening of marketing capabilities of SSI units
Development of Infrastructure
Export Promotion.
18. SIDBI provides
Foreign currency to import equipment
Re-finance
Micro-finance initiatives:
banking service is provided to
unemployed or low income people or who
have no access to financial service.
20. Credit policy
Priority sector lending –SSI,agriculture,export
etc(40% of lending to these sector)
Institutional arrangement:
SIDBI-Apex refinance bank
SFC-term loans
Scheduled Bank(private bank,public
bank & foreign bank) –Term loan
21. Initiatives are
Credit for tiny sector
Opening SSI bank branches
Technology development fund
Working capital
No security for loan upto 5 lakhs
Credit guarantee scheme up to 25
lakhs
Credit linked capital subsidy scheme
for technology upgradation
22. State Bank of India (SBI) has
many schemes for SSI
They are :
General purpose term loans (3 years)
Liberalized credit for SSI(no security
upto 5 lakhs)
Composite term loan (upto
25lakhs.combination of term loan and working
capital)
composite term loan = term loan + working
capital
23. SBI offer financial assistance to
technically qualified, trained and
experienced entrepreneur .
Equity fund scheme - interest free loan
for a period of 5 to 7 years
Stree Shakti Package - women
entrepreneurs
24. Composite loan scheme -
equipment+construction+working capital
needs
Margin money scheme –to start industries
in rural areas (partnership firms & Private Limited
companies are not eligible)
Mahila Udyam Nidhi Scheme-women
Export finance schemes
25. Karnataka State Small Industries
Development Corporation ( KSSIDC):
(KSSIDC) is an agency promoted by the
government of Karnataka
for promotion and development of small
scale industries in the state.
KSSIDC has established 98 industrial estates
in all the districts.
It has provided ready built sheds and small
plots for allotment to entrepreneurs.
26. KSSIDC has also opened raw material
depots in all the districts of the state.
An industrially prosperous Karnataka is the
vision of KSSIDC.
KSSIDC has regional offices at Bangalore,
Mysore, Gulbarga
Branch offices at Hubli, Belgaum,
Shimoga, Tumkur, Mangalore.
27. Karnataka State Industrial Investment and Development
Corporation( KSIIDC)
promoting industrial growth
The institution accepts loan applications
within the state of Karnataka only.
Provide medium and long-term loans.
28. Equipment finance scheme
assistance is available to
existing industrial concern with sound
financial position.
Repayment -2-5 years
Moratorium-1 year
29. The corporation started with the following as
its main services:
Establishment and management of industrial
estates.
Procurement and distribution of raw
materials.
Assistance towards marketing.
Supply of machinery under hire purchase
system
Providing guidance to SSI Entrepreneurs.
Providing Technical Library Facilities.
30. Industrial Finance Corporation Of India
( IFCI):
IFCI is one of the first public financial
institution set up in 1948
Credit to medium and large-sized
industries
Industrial and economic development
31. Principal activities
Provide finance for green-field
industrial projects (infrastructure project) and
brown-field projects (expansion,
diversification & modernization)
Expansion, diversification and
modernization
Term loan, working capital, bills
discounting
32. Purpose of Financial Assistance:
IFCI extends its assistance only for
productive purposes such as:-
Purchase Of new machinery
Construction of factory building
Purchase of land
Setting up new industrial project
Expansion, diversification, modernisation
and renovation of existing units.
34. DIC
To accelerate industrial development, GOI
has established DIC in every district.
The functions and activities of DICs are
monitored by the Directorate of Industries
Schemes of state govt implemented by DIC
35. Objectives
Accelerate industrialization
Spread of industries in rural areas
Decentralize industrialization to minimize
economic imbalances
Implement various schemes to
encourage entrepreneurs
Act as single window to obtain
permission
36. Role of DIC
Prepares profile of the industry located
in district
Prepares list of products and services
can be produced in the district
Assists entrepreneurs
Organize EDP
37. Marketing support
Exporting products and importing
machinery & raw material
Advice entrepreneurs on investment
opportunities
38. Small Industries Services Institute ( SISI):
SISI is established by GOI to help the SSI.
There are 28 SISI
39. Major activities of SISI
Assistance to prospective entrepreneur
Assistance to existing units
Economic Information
40. Conduct survey to identify emerging
business opportunities.
Prepares project profiles on various issues
EDP
Export promotion services
41. Conduct workshops, seminar, training
programmes on quality aspects in
business
Production index - to know the
performance of various industries.
Ancillary development
43. Entrepreneurship Development Institute
( EDI):
EDI an autonomous and not –for- profit
institution.
Set up in 1983.
sponsored by apex financial institutions
namely IDBI, IFCI,ICICI and SBI .
44. EDI has set up Centre for Research in
Entrepreneurship Education and
Development ( CREED).
45. The objectives of EDI are:
opportunities for self-employment
Training
Participating in institution building efforts
46. Inculcating the spirit of Entrepreneurship
in youth
Promoting micro enterprises at rural level
Improving managerial capabilities of
small scale industries.
48. The main functions of SIDO are
Framing of policies pertaining to SSI sector
Coordination with different agencies
Monitoring policy implementation
Industrial Development
Extension services (modernization)
49. Association of Women Entrepreneurs of
Karnataka (AWAKE):
Established in 1983
Any women who is an entrepreneur can
join AWAKE for a nominal fee.
Organize seminars on various topics
50. Purpose of AWAKE:
AWAKE strives to promote
entrepreneurship among women as a means
to achieve self- reliance and socio economic
independence
AWAKE provides support and guidance to
aspiring women from rural, urban, national
and international arenas
AWAKE’s services are extended to women
self-help group (SHGs), NGOs and other
developmental agencies.
51. The target group of AWAKE:
All women from urban, rural, national and
international areas aspiring to be socially
and economically self-reliant and
empowered.
All women entrepreneurs seeking
guidance to grow
52. Technical Consultancy
Organisations ( TCO)
Technical Consultancy Organization was
established by many financial institutions
like ICICI, IFCI, ,IDBI,SFC etc. in
collaboration with state level financial
institutions and commercial Banks.
53. Functions of TCO:
Advice SMEs about technical aspects of
business
Prepare project profiles and feasibility reports
Technical collaboration and transfer of
technology
Undertake financial potential survey
Offer merchant banking facilities
Undertake market research
Provide consultancy services to the new
entrepreneurs
Conduct entrepreneurship development
programmes
55. TECSOK offers range of services to the entrepreneurs:
Identification of Project ideas and
selection of investment opportunities
Selection of suitable locations for setting
up industrial units
Conducting market surveys, industrial
potential surveys
Turnkey Assistance
Assistance in obtaining necessary licenses
and clearances
56. Energy audit and conservation
Modernization studies
Coordinating and conducting
Management development programmes
Identification and development of
ancillary industries
57. Khadi and Village Industries Commission
(KVIC) :
Established in 1957, KVIC is an
autonomous body set up for promoting
khadi and village industries.
58. Objectives
To preserve traditional art
To equip artisans to take up challenges of
modern market.
To promote khadi, village and cottage
industry.
To market these products
To introduce products in international markets
59. Schemes provided by KVIC:
Working capital provision
Equity capital
Loan provision for purchase of raw materials
Marketing avenues and selling centres for the
products of artisans and craftsmen
Financial assistance for purchase of land,
building, workshop,machinery and equipment.
Subsidies for the registered societies of artisans
and craftsmen
60. Microfinance and SHG:
Microfinance ,also called microcredit, is a type
of banking service that is provided to
unemployed or low –income individuals or
groups which otherwise would have no other
access to financial services.
Microfinance organization support a large
number of activities that range from providing
the basics- like bank checking and savings
accounts – to startup capital for small business
entrepreneurs, and educational programs that
teach the principles of investing.
61. Different types of Microfinance Institutions
in India:
Joint Liability Groups (JLG): Informal
group consisting of 4-10 individuals who
try to avail loans against mutual guarantee
from banks for the purpose of agricultural
and allied activities.
Self-Help Group( SHG): It is a type of
formal or informal group consisting of
small entrepreneurs with similar kind of
socio-economic backgrounds.
62. The Grameen Bank Model: It was
introduced by Prof. Muhammad Yunus In
Bangladesh during 1970s. The goal of this
system has been the overall development of
the rural economy which generally consists
of Financially backward classes.
Rural Cooperatives: It used the mechanism
to pool the resources of people with
relatively small means and provide financial
services.
63. Self-Help Groups:
It is a type of formal or informal group
consisting of small entrepreneurs with
similar kind of socio-economic backgrounds.
Such individuals temporarily come together
and generate a common fund to meet the
emergency needs of their business.
These groups are generally non-profit
organization.
Interest rates are also generally low and
fixed especially for women.