Financial institutions problems, prospects and challenges - an analysis of Himachal Pradesh financial Corporation

Finance is an essential and important input for breaking the vicious circle of poverty. Finance refers to the entire flexible structure and processes by which financial services and loans facility is provided to the entrepreneurs. The aim of finance is not only to extend credits to the entrepreneurs but to promote and boost financial markets that will provide sustainable access to financial services by creating a relationship between those with financial resources and those who need them. For any business to grow credit is essential, lack of credit is a barrier to investment and the growth of income particularly of entrepreneurs and nation as a whole. To boost the economy in the state of Himachal Pradesh. Himachal Pradesh Financial Corporation has come a big way to provide institutional credit to the small and medium scale enterprises. It has been found that due to topography of the state and reluctance on the part of government and some entrepreneurs this institutions is not working up to the mark. It has also been observed that due to sickness in industries H.P. Financial Corporation is also suffering huge losses and facing various financial challenges.