Maharashtra State Financial Corporation (MSFC)


The Maharashtra State Financial Corporation (MSFC) has been set up under the ‘State Financial Corporations (SFCs) Act 1951’. The Corporation has been operating in the State of Maharashtra sicne 1962 and in the State of Goa and the Union Territory of Daman and Diu since 1964.

The main function of MSFC is to provide Term Loan assistance to small and medium scale industries
(new as well as existing) for acquisition of fixed assets like land, building, plant & machinery.

a) Most of the industrial activities such as Manufacturing, Assembling, Servicing, Processing, Preservation, Transportation, Setting - up Industrial Estates, Road Construction etc.
b) Small Nursing Homes, Hotels, Restaurants, Tourism Related Activities
c) Medical Practitioners, Qualified Professionals.

* General Loan * Equipment Finance * Small Nursing Homes * Electro - Medical Equipment for Medical Practitioners
* Hotels, Restaurants & Tourism Related Activities * Qualified Professionals * Mahila Udyam Nidhi 
  * National Equity Fund 
* Technology Development & Modernisation

Limited Companies
Proprietary / Partnership Firms

Upto Rs. 2.40 Crore
Upto Rs. 1.20 Crore

PROJECT COST LIMIT : Upto Rs.10 Crore (Cost of the fixed assets, margin money for working capital, preliminary & pre - operative expenses and contingencies).

NET WORTH LIMIT : Upto Rs.10 Crore (Paid - up capital + free reserves excluding share premium amount)

INTEREST RATES : Ranging between 13.50% and 18% p. a., depending upon scheme, quantum of loan, SSI / other than SSI, eligibility for refinance, etc.

The loan amount is worked out considering the debt - equity ratio and minimum promoters’ contribution norms also ensuring that at least 10 per cent security margin is maintained on the value of fixed assets eligible for loan. Higher security margin and / or collateral security may also be insisted depending upon nature of assets and risk perception.

For loan amount upto Rs.10 Lakh, DER at 3:1 (75% loan, 25% equity) is observed, while for loan amount over Rs.10 Lakh, DER depends upon the scheme, loan amount, nature of assets and risk perception and ranges between 2:1 to 1.5:1 but may even extend to 1:1, keeping in mind viability and collateral security. ‘EQUITY’ includes promoters’ contribution, share capital, seed capital, State Govt. subsidy, part of the reserves, portion of accruals transferred out of profits, interest free unsecured loans (quasi equity) etc. ‘DEBT’ includes long term loans, deferred payments, etc.

(For Long Term Loans)

Loan above Rs.50,000 and
upto Rs.10 Lakh
Loan above Rs. 10Lakh

-   0.7% of the amount sanctioned
-    1% of the amount sanctioned subject to the maximum of
     Rs.1 Lakh

Maximum 8 years. Moratorium upto 2 years from the date of first disbursement during which only interest payment commences.For certain schemes shorter repayment period is prescribed.

Special Features
* No seperate Interest Tax Guarantee Fee, Service Charge, Inspection Fee, Compulsory Purchase of Shares, etc.
* Facility to pay the quarterly Interest within 15 days from the date of calculation
* Decentralisation of Sanctioning & Disbursement powers.
* Need - based additional loans and facilities for deserving units.
* Longer Moratorium and Repayment Period.

HEAD OFFICE : New Excelsior Building., A. K. Nayak Marg, Fort, Mumbai - 400 001 (India)
* Tel. : (022) 2077711 / 12, 2077786 / 87 * Fax : (022) 2070113 / 2079902 * E - Mail :

* Amravati : Parvati Bhavan, 1st Floor, Badnera Road, Rajkamal Chowk, Amravati-444601 * Tel. : (0721) 673615 / 673670 * Fax : 673642 * E - Mail :