I have studied the effects of finite electron inertia, finite ion Larmor radius (FLR) corrections, and radiative heat-loss function on the thermal instability of an infinite homogeneous, viscous plasma incorporating the effect of thermal conductivity for star formation in interstellar medium (ISM). A general dispersion relation is derived using the normal mode analysis method with the help of relevant linearized perturbation equations of the problem. The wave propagation is discussed for longitudinal and transverse directions to the external magnetic field and the conditions of modified thermal instabilities and stabilities are discussed in different cases. We find that the thermal instability criterion is get modified into radiative instability criterion by inclusion of radiative heat-loss functions with thermal conductivity. The viscosity of medium removes the effect of FLR corrections from the condition of radiative instability. Numerical calculation shows stabilizing effect of heat-loss function, viscosity and FLR corrections, and destabilizing effect of finite electron inertia on the thermal instability. Results carried out in this paper shows that stars are formed in interstellar medium mainly due to thermal instability.