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The Interest Subsidy Eligibility Certificate scheme supports the Khadi sector by subventing the interest on working capital loans. Registered Khadi institutions pay only 4% while the government covers the rest to the lending bank.
Key features
- Effective interest rate for the borrower: 4% per annum
- Applicable to working capital loans for Khadi production
- Disbursed via scheduled commercial banks with KVIC intermediation
Eligibility
- Khadi institutions registered with KVIC or State Khadi Boards
- Loans must be for Khadi production and marketing
Benefits
- Substantial interest cost saving
- Improved cashflow for Khadi producers
Required documents
- ✓KVIC registration
- ✓Bank loan proposal
- ✓Working capital assessment
Application process
- 1EligibilityConfirm KVIC registration and loan purpose.
- 2Bank loanApply for working capital with an empanelled bank.
- 3ISEC certificateKVIC issues the ISEC and coordinates subvention.
FAQs
KVIC issues ISEC certificates to eligible Khadi institutions.
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