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Interest Subsidy Eligibility Certificate (ISEC) Scheme

Ministry: Ministry Of Micro, Small and Medium Enterprises

The scheme aims to provide concessional working capital loans at 4% interest to khadi institutions through interest subsidy support.

Last verified6 days ago
Official Source ↗
Source: myScheme.gov.in ↗Last verified: 28 Sept 2026·YojnaGuru is not affiliated with or endorsed by any government body

About This Scheme

Introduced in 1977, the scheme "Interest Subsidy Eligibility Certificate (ISEC)" by the Ministry of Micro, Small and Medium Enterprises, Government of India, aims to provide concessional credit at 4% interest through subsidy support to khadi institutions for meeting working capital requirements. The scheme "Interest Subsidy Eligibility Certificate (ISEC)" by the Ministry of Micro, Small and Medium Enterprises, Government of India aims to provide concessional credit at 4% interest through subsidy support to khadi institutions for meeting working capital requirements.

Benefits

  • Interest Subsidy: Loans available at a concessional interest rate of 4% per annum for working capital.
  • Subsidy Support: The difference between the actual bank interest rate and 4% is paid by the Central Government through the Khadi and Village Industries Commission (KVIC).
  • Funding Support: Helps bridge gap between required funds and budgetary allocation.
  • Sector Coverage: Applicable for khadi and polyvastra sector only.

Eligibility

Note: You may be eligible based on the information shown. Please verify the official eligibility requirements before applying.
  • •

    The applicant must be a khadi institution.

  • •

    The applicant must have a valid Khadi Certificate.

  • •

    The applicant must have a sanctioned khadi programme.

  • •

    The applicant must be registered with Khadi and Village Industries Commission (KVIC) or State Khadi and Village Industries Boards (KVIBs).

Required Documents

  • ✦
    Aadhaar Card.
  • ✦
    Income certificate.
  • ✦
    Caste certificate.
  • ✦
    Bank account statement.

✦ Required ◦ Optional

How to Apply

IIn-person

Step 1: The applicant applies to the financing bank for working capital.

Step 2: The applicant submits the Interest Subsidy Eligibility Certificate issued by KVIC.

Step 3: The bank sanctions working capital loan based on requirement.

Step 4: The bank raises reimbursement claim for interest subsidy to the nodal branch.

Step 5: The subsidy amount is reimbursed through KVIC.

Quick Info

Level
Central Government

Categories

Education & Learning

Data Sources