Himachal Pradesh Financial Corporation (HPFC) was established in the State under the Central Act, viz. The State Financial Corporations Act, 1951, with the basic objective of promoting and developing small scale and medium scale industries in the State with a special focus on spreading industrial culture in the rural, semi-urban and backward areas of the State. The Corporation is owned by the State Government jointly with SIDBI and is functioning under the administrative control of the State Government.

The Chairman and Managing Director of HPFC are appointed by the State Government and SIDBI. The Board of Directors is highly professional and consists of senior IAS officers  of the State Government,  representative  from  SIDBI, Banks, Life Insurance Corporation, etc.

The Corporation caters to the requirements of the entrepreneurs by providing term-loan to small and medium scale industries, hotel, Micro Hydel project   for creation of assets, viz., land, building and machinery. It also provides working capital term-loan to the industrial units on competitive terms

It is operating a number of financial assistance schemes for the benefit of the entrepreneurs such as assistance for marketing activities, equipment finance, special schemes for assistance to ex-servicemen, single window scheme, etc. The Corporation has sanctioned amount of Rs. 697 crores to 44 80 units since its inception up to 31st March 2007.

The Corporation can provide loan upto Rs 2,000 lacs at highly competitive interest rates.