Interest Subsidy Eligibility Certificate (ISEC) Scheme
A Government Initiative by MSME
About
The Interest Subsidy Eligibility Certificate (ISEC) scheme is an initiative by the Government of India to support the Khadi and Village Industries (KVI) sector. It provides a subsidy on interest rates for working capital loans, making it easier for KVI units to access affordable credit. Managed by the Khadi and Village Industries Commission (KVIC), the scheme helps reduce financial burdens and promotes the growth and sustainability of KVI units.
Benefits
Affordable Credit: KVI units can obtain bank loans at a concessional interest rate of 4%.
Interest Subsidy: The government subsidizes the difference between the concessional rate and the bank’s prime lending rate.
Financial Support: Eases financial costs, enhancing competitiveness and growth of KVI units.
Sustainability: Encourages sustainable development within the KVI sector.
Eligibility
KVI Units: Any Khadi and Village Industries unit registered with KVIC.
New and Existing Units: Both new and existing KVI units are eligible for the scheme.
Sector-Specific: Primarily targeted at units operating within the Khadi and Village Industries sector.
How to Apply
Registration with KVIC: Ensure your KVI unit is registered with the Khadi and Village Industries Commission.
Application Submission: Submit the application for the Interest Subsidy Eligibility Certificate to KVIC.
Documentation: Provide necessary documents including business details and financial statements.
Approval and Issuance: Upon verification, KVIC will issue the Interest Subsidy Eligibility Certificate.
Loan Application: Use the certificate to apply for a working capital loan at a participating bank.
For more details, visit the KVIC website.
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