The Interest Subsidy Eligibility Certificate (ISEC) Scheme is an
important mechanism of funding khadi programme undertaken by khadi
institutions. It was introduced to mobilise funds from banking
institutions for filling the gap between the actual fund requirements
and availability of funds from budgetary sources.
Nature of assistance
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
4% is paid by the Central Government through KVIC to the lending banks.
Who can apply?
Khadi institutions, having valid Khadi certificate and sanctioned khadi
programme.The Institutions registered with the KVIC/State Khadi and
Village Industries Boards (KVIBs) can avail of financing under the ISEC
Scheme, the Scheme supports only the khadi and the polyvastra sector.
How to apply?
Khadi institutions will apply to the financing bank for working capital
alongwith the ISEC certificate issued by KVIC. Based on the working
capital sanctioned, financing bank will raise the reimbursement claim to
the nodal branch for the differential interest rate over and above 4%.