ISEC Scheme for Khadi Institutions

Navigating the Interest Subsidy Eligibility Certificate (ISEC) Scheme for Khadi Institutions

If you’re involved in the khadi sector or interested in supporting traditional Indian textiles, understanding the Interest Subsidy Eligibility Certificate (ISEC) Scheme is essential. This initiative plays a significant role in providing financial assistance to khadi institutions, ensuring they can thrive and promote sustainable practices.

What is the ISEC Scheme?

The ISEC Scheme is designed to help khadi institutions secure funding by bridging the gap between their financial needs and available budgetary resources. By facilitating easier access to credit, the scheme promotes the growth of khadi and polyvastra sectors across India.

How Does It Work?

One of the standout features of the ISEC Scheme is the concessional interest rate of just 4% per annum for working capital. The Central Government compensates lending banks for the difference between this low rate and the prevailing market rates. This ensures that financial support is both accessible and affordable for khadi producers.

Who Can Benefit?

To take advantage of the ISEC Scheme, institutions must meet certain criteria:

• Valid Khadi Certificate: Only institutions with a valid certificate are eligible.
• Approved Khadi Program: Institutions must have a sanctioned khadi program in place.
• Registration: Only those registered with the Khadi and Village Industries Commission (KVIC) or the State Khadi and Village Industries Boards (KVIBs) can apply.

This scheme specifically supports the khadi and polyvastra sectors, focusing on promoting traditional craftsmanship and sustainable practices.

How to Apply

If your khadi institution meets the eligibility criteria, applying for funding is straightforward:

1. Apply to a Financing Bank: Submit your application for working capital along with the ISEC certificate issued by KVIC.
2. Approval Process: Once the bank approves your request, they will submit a reimbursement claim to the designated branch for the interest difference above the 4% rate.

Need More Information?

For further details or assistance regarding the ISEC Scheme, feel free to reach out to:

Dy. CEO, KVIC
Phone: 022-26710021
Email: kvicecr@gmail.com

The ISEC Scheme is a vital resource for khadi institutions, enabling them to secure the funding they need to flourish. By supporting traditional textiles, we contribute to the preservation of India’s rich cultural heritage and promote sustainable practices in the textile industry.