Functions of the IFC:
The purpose of the IFC is to further economic development by encouraging growth of private enterprise in member-countries. The IFC, therefore:
• invests in private enterprise in member-countries in association with private investors and without Government guarantee, in cases where sufficient private capital is not available on reasonable terms;
• seeks to bring together investment opportunities, private capital of both foreign and domestic origin, and experienced management; and
• stimulates conditions conducive to the flow of private capital - domestic and foreign - into productive investments in member-countries.
The IFC investment normally does not exceed 40 per cent of the total investment of the enterprise. In case of its investment by equity participation, it does not exceed 25 per cent of the share capital. The interest charged on advances varies depending upon the proposal and status of the borrower. India has also received substantial assistance from the IFC.