The effect of radiative heat-loss function and finite ion Larmor radius (FLR) corrections on the thermal instability of infinite homogeneous viscous plasma has been investigated incorporating the effects of thermal conductivity and finite electrical resistivity for the formation of a molecular cloud. The general dispersion relation is derived using the normal mode analysis method with the help of relevant linearized perturbation equations of the problem. Furthermore the wave propagation along and perpendicular to the direction of external magnetic field has been discussed. Stability of the medium is discussed by applying Routh Hurwitz's criterion and it is found that thermal instability criterion determines the stability of the medium. We find that the presence of radiative heat-loss function and thermal conductivity modify the fundamental criterion of thermal instability into radiatively driven thermal instability criterion. In longitudinal direction FLR corrections, viscosity, magnetic field and finite resistivity have no effect on thermal instability criterion. The presence of radiative heat-loss function and thermal conductivity modify the fundamental thermal instability criterion into radiatively driven thermal instability criterion. Also the FLR corrections modify the growth rate of the Alfven mode. For transverse wave propagation FLR corrections, radiative heat-loss function, magnetic field and thermal conductivity modify the thermal instability criterion. From the curves it is clear that heat-loss function, FLR corrections and viscosity have stabilizing effect, while finite resistivity has destabilizing effect on the thermal modes. Our results show that the FLR corrections and radiative heat-loss functions affect the evolution of interstellar molecular clouds and star formation.