Sarkari Yojana

Interest Subsidy Eligibility Certificate (ISEC) Scheme

Quick Summary: ISEC gives registered khadi institutions working capital loans at a concessional 4% interest rate, with KVIC covering the gap between market rates and the subsidized rate. It applies only to the khadi and polyvastra sector.

About Interest Subsidy Eligibility Certificate (ISEC) Scheme

Introduced in 1977 by the Ministry of Micro, Small and Medium Enterprises, Government of India, the “Interest Subsidy Eligibility Certificate (ISEC)” scheme gives khadi institutions concessional credit at 4% interest, through subsidy support, to cover their working capital needs.

Scheme Overview

Government Level

Central Government

Ministry

Ministry Of Micro, Small and Medium Enterprises

Eligible Entity

Business Entity

Scheme Details

Eligibility

Eligibility Requirements

To qualify for Interest Subsidy Eligibility Certificate (ISEC) Scheme, applicants must satisfy the following conditions:

🎓

The applicant must be a khadi institution

The applicant must be a khadi institution.

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The applicant must hold a valid Khadi Certificate

The applicant must hold a valid Khadi Certificate.

✅

The applicant must have a sanctioned khadi programme

The applicant must have a sanctioned khadi programme.

✅

The applicant must be registered with the Khadi…

The applicant must be registered with the Khadi and Village Industries Commission (KVIC) or a State Khadi and Village Industries Board (KVIB).

Applicants must meet all of the above conditions to be considered eligible for this scheme.
Benefits

Benefits Provided

Interest Subsidy Eligibility Certificate (ISEC) Scheme provides the following benefits to eligible applicants:

💰

Interest Subsidy

Interest Subsidy: Working capital loans are available at a concessional 4% per annum interest rate.
Subsidy Support: The Central Government, through KVIC, pays the gap between the actual bank interest rate and 4%.
Funding Support: Helps close the gap between the funds needed and the budgetary allocation.
Sector Coverage: Applies only to the khadi and polyvastra sector.

Benefit amounts and conditions may vary by category — refer to the official scheme guidelines for exact figures applicable to your case.
Documents Required

Documents Required

Applicants should keep the following documents ready before starting the application:

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Applicant's Aadhaar card as proof of identity

Applicant's Aadhaar card as proof of identity.

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A certificate stating the applicant's income

A certificate stating the applicant's income.

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Certificate confirming the applicant's caste

Certificate confirming the applicant's caste.

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Statement of the applicant's bank account

Statement of the applicant's bank account.

Ensure all documents are valid and, where required, duly attested before submitting your application.

How to Apply

Offline Application

Applicants can apply for Interest Subsidy Eligibility Certificate (ISEC) Scheme through the offline application process outlined below.

1️⃣

The applicant approaches the financing bank for working…

The applicant approaches the financing bank for working capital.

2️⃣

The applicant submits the Interest Subsidy Eligibility Certificate…

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

3️⃣

The bank sanctions the working capital loan based…

The bank sanctions the working capital loan based on the requirement.

4️⃣

The bank files a reimbursement claim for the…

The bank files a reimbursement claim for the interest subsidy with the nodal branch.

5️⃣

KVIC reimburses the subsidy amount

KVIC reimburses the subsidy amount.

Ensure all required documents are ready before starting the application process.

Official Application & Website

Verify the latest eligibility, dates and instructions before applying.

Official Sources & References