The following are the main features of the investment policy of the IFC

The following are the main features of the investment policy of the IFC:

(i) The IFC considers only those enterprises which are predominantly industrial and contribute to economic development of the country.

(ii) The project to be financed by the IFC must be in the private sector and must be productive in nature.

(iii) Before making any investment, the Corporation satisfies itself that the enterprise has experienced and competent management.

(iv) The IFC’s loan will not be more than half of the capital needed for an enterprise.

(v) The minimum investment to be made by the IFC to a single enterprise is fixed at $ 100,000: no upper limit is fixed.

(vi) The rate of interest for the IFC loan is determined by mutual negotiation, depending upon the degree of risk involved and other terms of investment.

(vii) The IFC’s loans are disbursed in lump-sum or in installments and are repayable in a period of 5 to 15 years.