Providing capital to MSMEs: APSFC


Aditya Sabharwal

Andhra Pradesh State Financial Corporation is an entity that assists small businesses and entrepreneurs get access to capital. Established in 1956 APSFC offers flexible financial assistance schemes to plethora of businesses.

Headquartered in Vijayawada APSFC has branches across the state offering medium term loans for marketing establishments, hotels/motels/restaurants, port logistics & warehouses, multiplexes/convention centers etc.

Jointly promoted by SIDBI and government of AP, APSFC offers liberal financial assistance for acquiring fixed assets like land, building and machinery by new/existing units and working capital term loans for existing units. ‘Term loans can be availed from a minimum of Rs 10 lakhs to a maximum of Rs 8 crores per project for partnership firms/sole proprietary concerns while up to Rs 20 crores for public/private limited companies/co-operative societies’ stated Mr G Ravi Kumar, branch manager, APSFC.

Mr Kumar further informs that the corporation also extends financial assistance to larger projects through joint financing with SIDBI and other commercial banks.

Although APSFC has a wide range of sectors that it supports it has a keen focus on manufacturing units.

Some of the thrust areas of APSFC include:

— Food processing industries

— Agro based industries

— Automobile components

— Tourism related activities

— Apparels/textile industries

— Infrastructure development projects

— IT and IT related activities


For SMEs needing help in preparing project reports the corporation has a SME facilitation center which helps enterprises make reports which can then be presented to different banks says Mr Kumar.

YES to Entrepreneurs

And in order to encourage entrepreneurs the corporation has a YES scheme. The YES scheme has a special focus on young entrepreneurs that are looking at establishing micro and small industries. Some of the eligible norms for qualifying under the YES scheme include: New or existing micro and small enterprises engaged in manufacturing or service activities, promoters shall preferably have a minimum qualification of being a graduate with 51% of the stake held by promoters and whose age does not exceed 40 years.

‘We want entrepreneurs to directly approach us’ said the branch manager.

Even though the corporation is there to financially assist entrepreneurs Mr Kumar cautions that entrepreneurs should have clarity of thought in what they want to do and make sure that their project is viable.

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