PERFORMANCE OF APSFC IN FINANCING MSME PROJECTS

An entrepreneur cannot succeed in his venture and/or enterprise without a project. Project is useful to get finance from financial agencies for expansion, diversification and modernisation of the existing business or for starting a new venture. Entrepreneurs have no fully resources for starting a venture or to diversify, expanding and modernisation of the existing one. They have to depend on financial institutions or money lenders for getting finance. Money lenders issue credit at high interest rates. Entrepreneurs will have to depend on financial institutions for getting finance at reasonable interest rates. APSFC was started as a regional development bank in Andhra Pradesh for developing and promoting entrepreneurship. An insight into finance provided by the APSFC shows an irregular growth. The project is a basic foundation of an enterprise and it is also very credential to the entrepreneur. Invariably, an entrepreneur cannot succeed in his venture and/or enterprise without a project. Thus, the project becomes a foundation stone of a venture. Generally, these projects may be for starting a new venture, diversification and expansion of the existing business. Adequate and timely credit to these projects makes the entrepreneurs succeed in the business. Financial institutions are playing very competent role in financing these projects. But, they are unable cater all the long term financial needs of the MSMEs. With the main aim to provide long term finance to the MSMEs, SFCs were started as Regional Development Banks. These SFCs are started under the State Financial Corporations Act, 1951 at the State Level by an Act of Parliament of India. Andhra Pradesh State Financial Corporation (APSFC) came into existence on l stNovember 1956.