Gujarat State Financial Corporation

Gujarat State Financial Corporation (GSFC), established on 1st May, 1960, under State Financial Corporations Act, 1951 and operating from Gujarat is the second state level developmental institution to go public, after Haryana Financial Corporation. Its main object is to provide financial assistance to small and medium scale new/existing industrial and service sector units all over Gujarat for acquisition of fixed assets, preliminary and pre-operative expenses, expansion, modernization, diversification etc. GSFC is a body corporate established as statutory Corporation by Government of Gujarat pursuant to Section 3 (1) of State Financial Corporations Act, 1951 to provide medium and long term credit to small and medium scale industrial undertakings in the State of Gujarat and Union Territories of Dadra and Nagar Haveli. Corporation pioneered in industrial development of the State by extending financial assistance to SMEs. With the passage of time and particularly after financial reforms, Corporation's fortune dwindled and could not withstand stiff competition from new entrants. Corporation was forced to discontinue its main activities of sanction and disbursement from FY 2001-02 and concentrating on recovery of dues since then. The Corporation came out with a Public Issue in Feb.'97 at a premium of Rs. 10. The State Government of Gujarat hold 53.03% in the Corporation as at March 31, 2026. GSFC has sanctioned loans and advances of over Rs 4400 crores; out of which, it has disbursed over Rs 3,300 crores to Rs 47,000 units in the state. GSFC took up the lead to encourage entrepreneurship in hi-tech agriculture & accelerate the growth in this sector. It has taken on an added role of nodal agency for export promotion in Gujarat by actively exploring potential export market and identifying overseas business opportunities. The Corporation has starting online services wherein all the assisted customers have complete information at the press of computer keys. GSFC was appointed as the Channelising Agency by NHFDC to sanction loan at a concessional rate of interest between 5% to 10%. GSFC played an important role in the industrial development of the State. Till date, it financed 47,331 units and disbursed Rs. 3,300 crore, generating employment for over 6,00,000 persons. Many units financed by it are still now well established and have graduated from small to medium and large scale. Apart from this, One Time Settlement schemes have been introduced to expedite recovery.