The Maharashtra State Financial Corporation (MSFC) has been set up under the 'State Financial Corporations Act, 1951. The Corporation operates in State of Maharashtra from 1962 and in State of Goa and Union Territory of Daman & Diu since 1964.

Functions and Objectives 

The main function of MSFC is to meet the term loan requirements of small and medium scale industries for acquisition of fixed assets like land, building, machinery and equipments. The loans are given for setting up new industrial units as well as for expansion and modernisation of the existing units. 

The objective of the Corporation is to promote more industries in backward and developing areas of Maharashtra, Goa and Union Territory of Daman & Diu. 

Organisational set up 

MSFC is a highly decentralised organisation and has network of offices in all the districts of Maharashtra and Goa except Gadchiroli. MSFC has nine regional offices and twenty branch offices. 

Services Rendered 

• MSFC grants term loans upto Rs. 90 lakhs to limited companies and registered co-operative societies and Rs. 60 lakhs to proprietary and partnership firms.

• The Corporation also finances projects with large capital outlay (total project cost upto Rs. 5 crores) in participation with SICOM/ALL India Financial institutions/Commercial Banks etc. However, in such cases assistance from MSFC is limited to Rs. 90 lakhs.

• The Corporation provides seed capital assistance mainly to the new/first generation entrepreneurs who possess necessary skill or practical experience but lack requisite funds to meet gap in the DER and/or promoter's contribution. The seed capital assistance is  given to bridge the gap in expected promoter's contribution. If the requirement of seed capital exceeds Rs. 4 lakhs, the same is  covered by IDBI seed capital scheme. The assistance may be in the form of soft loan or equity. The seed capital assistance is also given for expansion, modernisation/diversification.

Type Of Industries Eligible For Assistance 

In terms of SFC's Act, the concerns which are engaged in or to be engaged in manufacture, preservation, processing of goods, mining, hotel industry, transport of passengers or goods by road or water, maintenance, repairs, testing or servicing of machinery of any description or vehicles or vessels, assembling, repairing or packing of any article with the aid of machinery and power are eligible for financial assistance from the Corporation. Development of mines, development of any process or product where research is undertaken,  are also eligible for assistance from the Corporation. Industrial concerns whose constitution is proprietary, partnership, Hindu undivided family, private or public limited company, registered co-operative society & Trusts are eligible to get financial assistance from the Corporation. 

Loans only for working capital and repayment of old debts, whether from Bank or private party, are not considered. 

Besides above, the assistance is also available under following schemes 

•  Medical Practitioners Scheme (Electro medical equipment)
• Small Nursing Home Scheme
• Nursing Home Scheme
• Professionals
• Restaurants

As per the latest guidelines of IDBI/SIDBI the Debt Equity norms laid down in most of the schemes is 2:1 

The difference in the funds required as per debt equity norms & minimum promoter's contribution can be met by way of State Capital Incentives, Seed Capital Assistance (wherever eligible), Interest free long term deposits from Directors, interest free long term unsecured borrowings etc. 

Board Of Directors