Identifying Term Lending Institutions in India

Term lending institutions are financial entities that provide medium to long-term loans to businesses. These loans are typically used for capital expenditures, such as setting up new projects, expansion, modernization, or diversification.

Analysis of Institutions

• Industrial Development Bank of India (IDBI) (I): Established primarily to finance and develop Indian industries, IDBI has historically been a significant provider of term loans for industrial projects.
• EXIM Bank (II): The Export-Import Bank of India focuses on financing, facilitating, and promoting foreign trade. It offers various loan products, including term loans, for export and import-related activities, playing a crucial role in international trade finance.
• Small Industrial Development Bank of India (SIDBI) (III): While SIDBI provides financial assistance, including term loans, its primary focus is on the micro, small, and medium enterprise (MSME) sector.
• NABARD (IV): The National Bank for Agriculture and Rural Development specialises in financing agriculture and rural development. Its role involves refinancing institutions that provide loans for these sectors.

Based on the primary roles in financing industrial and international trade sectors, IDBI and EXIM Bank are typically classified as key term lending institutions.

Conclusion

Considering the roles of the institutions listed:

• IDBI (I) is a term lending institution.
• EXIM Bank (II) is a term lending institution.

Therefore, the institutions that fit the description are I and II.

The correct option is I and II.