Sanctions financial assistance at lower rates of interest to individuals, Groups belonging to Backward classes, Most Backward classes and Denotified communities for establishing viable trade or business for their economic upliftment. The corporation was established in the year 1982. It is a state-owned company registered under the Companies Act, 1956. The corporation has an authorized share capital of Rs. 30 crore and a paid-up capital of Rs.12.27 crore. The corporation has been acting as the stated channelizing agency of the National Backward Classes Finance and Development Corporation and obtains loan from the latter upon the Guarantee given by the Tamilnadu Government for funding various loan schemes.