Incorporated on 1st May, 1961. 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 has played an important role in the industrial development of the state. Till date, it has financed 47,331 units and disbursed Rs. 3,300 crore, generating employment for over 6,00,000 persons. Many units financed by it are now well established and have also graduated from small to medium and large scale.
Since the last few years, Corporation is passing through financially difficult times. Due to very heavy NPA and as commercial banks are now performing similar activity has stopped advancing fresh loans since October 2001.
Currently, it is engaged in the activity of recovering dues from its borrowers and paying its lenders.
One Time Settlement schemes have been introduced to expedite recovery.
Cost cutting exercise has been implemented to reduce manpower by deputing staff to various Government departments and by implementing VRS.
Government has formed a high-powered committee under Chief Secretary to decide on the future of GSFC. Committee has decided to offer VRS to employees, have OTS scheme and restructure the organization.