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Karnataka State Financial Corporation (KSFC)

KSFC gives financial asssistance to set up tiny, small, medium and large scale industrial units in the Karnataka State. The Corporation extends term loans to new & existing units upto Rs. 500 lakhs for corporate bodies and registered co-operative societies. Term loans upto Rs. 200 lakhs are sanctioned to proprietary, partnership and joint hindu undivided family concerns.KSFC extends lease financial assistance and hire purchase assistance for acquisition of machinary/equipment/transport vehicles. KSFC has a merchant banking department and is approved as a category I merchant banker by SEBI. Under this activity it does management of public issues, under-writing of shares, project report preparation, deferred payment guarantee, syndication of loans, bill discounting etc.The fund based activities like subscription to non-convertible debentures, actoringservices are also considered.

KSFC is one of the fast track term lending financial institutions in the country.With assistance to more than 1,56,758 units amounting to nearly 7,744 crores over the last 47 years in the State of Karnataka,it is one of the robust, professionally managed State Financial Corporations.

The focus of Karnataka State Financial Corporation (KSFC) has always been on the small scale sector, artisans, tiny units and disadvantaged groups. KSFC has been the main term lending institution in most of the districts for first generation entrepreneurs. Its area of activities are :

Assistance to backward areas

The Industrial Policy of Karnataka divides the state into 3 zones. zone I covers developed areas, zone II covers developing areas and zone III covers growth centres. Of the flow of term loan assistance from KSFC during the year 1997-98 4.82% went to growth centres, 71.94% to developing areas and 23.24% to developed areas.

Assistance to the small scale sector

During the year Rs. 272.31 crores were sanctioned to 3,655 cases. Cumulative assistance to SSIs at the end of March 1998 stood at Rs. 2,823.82 crores in 92,799 cases.

Assistance to artisans, tiny, village and cottage industries.

KSFC has extended Rs. 91.20 crores as term lending assistance to 1,866 tiny units during the year. Artisans, village and cottage industries covered in 1997-98 numbered 514.

Assistance to medium scale industries

During the year 1997-98, KSFC has extended term lending assistance to 96 medium scale units amounting to Rs. 57.91 crores. The cumulative assistance to this sector stood at Rs. 526.46 crores in 1,402 cases.

Assistance to local entrepreneurs

To develop entrepreneurship among local people. During the year 1997-98, KSFC has extended term lending assistance to 6,767 entrepreneurs to the extent of Rs. 455.84 crores (98.75% in terms of numbers and 95.14% in terms of amounts).

Assistance to special segments of society

KSFC continued to accord priority to projects set up by entrepreneurs belonging to special segments of society like scheduled castes, scheduled tribes,