In India, the State Financial Corporation has given assistance to mainly develop medium and small scale industries. The State Financial Corporation Act was passed in 1951 which empowered all states and union territories to set up state financial corporation to meet the need for financial assistance of micro, small and medium scale enterprises. There are 18 state financial corporations in India. Functions of State Financial Corporations are as follow ● Long term financial assistance. ● Guarantee for loans. ● Acts as agents of government. ● Credit and guarantee for purchase.