The Interest Subsidy Eligibility Certificate (ISEC) is available for Khadi Institutions, under the scheme of The Ministry of Micro, Small and Medium Enterprises (KVIC), which undertakes the funding of khadi programmes by khadi institutions. It collects the funds from the banking sector to fill the gap between the availability of funds from budgetary sources and the actual fund needed.
Features of ISEC
The features and benefits of the programme are listed below:
- The interest rate is 4% per annum for the working capital which is provided to institutions.
- The difference in the 4% and the actual lending rate is paid to the lending banks by the Central Government through the Khadi and Village Industries Commission (KVIC).
- A unified scheme to provide the release of the interest subsidy to the institutions has been approved by the government for khadi and Polyvastra.
Interest Subsidy Eligibility
Khadi institutions with a sanctioned khadi programme and those having valid khadi certificate registered with the state Khadi or KVIC and the Village Industries Boards (KVIB) also they are engaged in the khadi and polyvastra sector only those are eligible to apply his subsidy scheme.
ISEC Registration Process
Khadi institutions are willing to apply for working capital to the financing bank. They have to apply with the help of the ISEC certificate that is issued by the KVIC. The financing bank will then raise the claim for compensation to the nodal bank based on the working capital that is issued.
Here we listed the benefits and procedure to apply for this subsidy scheme issued and sanctioned by the government. So if anyone can have the documents and willing to they can apply soon.