Interest Subsidy Eligibility Certificate (isec) Scheme
The Interest Subsidy Eligibility Certificate (ISEC) Scheme helps registered Khadi institutions access working capital loans from banks at a concessional rate of just 4% per annum — the Central Government pays the interest difference above 4% directly to the lending bank via KVIC. Eligible institutions apply to their financing bank with an ISEC certificate issued by KVIC. This scheme covers only the Khadi and polyvastra sector.
About This Scheme
The Interest Subsidy Eligibility Certificate (ISEC) Scheme helps registered Khadi institutions access working capital loans from banks at a concessional rate of just 4% per annum — the Central Government pays the interest difference above 4% directly to the lending bank via KVIC. Eligible institutions apply to their financing bank with an ISEC certificate issued by KVIC. This scheme covers only the Khadi and polyvastra sector.
Full official description
The Interest Subsidy Eligibility Certificate (ISEC) Scheme is an essential mechanism for funding the Khadi program undertaken by Khadi institutions. It was introduced to mobilize funds from banking institutions to fill the gap between the actual fund requirements and the availability of funds from budgetary sources. Under the ISEC Scheme, credit at a concessional rate of interest of 4% per annum for working capital, is made available as per the requirement of the institutions. The difference between the actual lending rate and the Central Government pays 4% through KVIC to the lending banks.
Benefits
- Working capital loans available at just 4% interest per annum (highly concessional rate)
- Central Government pays the difference between 4% and the bank's actual lending rate
- Reduces borrowing costs significantly for Khadi weavers, artisans, and institutions
- Enables Khadi institutions to access institutional bank credit without high-interest burden
Who Can Apply (Eligibility)
- Must be a Khadi institution registered with KVIC or State Khadi and Village Industries Boards (KVIBs)
- Must hold a valid Khadi certificate issued by KVIC or KVIB
- Must have a sanctioned Khadi programme
- Scheme applies only to Khadi and polyvastra sector — other Village Industries are not covered
How to Apply
- The Khadi institutions will apply to the financing bank for working capital along with the ISEC certificate issued by KVIC. Based on the working capital sanctioned, the financing bank will raise the reimbursement claim to the nodal branch for the differential interest rate over and above 4%.
Frequently Asked Questions
What is the ISEC Scheme?
Eligibility criteria may vary, but generally, Indian citizens pursuing professional or technical courses with a family income within specified limits are eligible for the scheme.
How can I apply for the ISEC Scheme?
To apply for the ISEC Scheme, you need to fill out the official application form and submit it along with the required documents to the designated authority responsible for implementing the scheme.
Who is eligible for the ISEC Scheme?
Eligibility criteria may vary, but generally, Indian citizens pursuing professional or technical courses with a family income within specified limits are eligible for the scheme.
What is the benefit of the interest subsidy?
The interest subsidy reduces the financial burden on education loans by providing a subsidy on the interest charged during the moratorium or study period.
Can I apply for the ISEC Scheme after taking an education loan?
Yes, you can apply for the ISEC Scheme even if you have already taken an education loan, provided you meet the eligibility criteria and other requirements.
Is there a specific income limit for eligibility?
Yes, there are specified income limits for eligibility. These limits may vary depending on the scheme's guidelines and implementing authority.
Are there any exclusions from the ISEC Scheme?
Some exclusions may apply, such as non-eligible courses, non-Indian citizens, loans exceeding the specified amount, and individuals already availing of similar financial assistance schemes.
How is the interest subsidy disbursed?
The interest subsidy is typically disbursed directly to the loan account of the eligible student through the designated bank.
Can I track the status of my ISEC Scheme application?
Yes, you can inquire about the application status by contacting the designated authority responsible for the scheme implementation.
Where can I find more information about the ISEC Scheme?
You can refer to the official government portals, and scheme websites, or contact the implementing authority for detailed information regarding the ISEC Scheme.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Aadhaar Card
- Income certificate
- Caste certificate
- Bank account statement