How to get kvic loan: All About KVIC Loan

How to get kvic loan: All About KVIC Loan

According to the KVIC Act of 1956, KVIC is a statutory body that aims to foster economic growth and employment in rural areas of India. By propagating the use of handwoven and home-spun fabrics, Mahatma Gandhi founded the Swadeshi Movement in 1920. To protest at British goods, they shanked them. The method was astonishingly simple. Using a simple charkha, a common Indian implement, Khadi is a hand-made cloth. Learn How to get kvic loan: All About KVIC Loan.

How to get kvic loan: All About KVIC Loan
How to get kvic loan: All About KVIC Loan

According to its full name, KVIC stands for Khadi and Village Industries Commission and this agency was established as an apex agency under the Ministry of Micro, Small and Medium Enterprises to plan, promote, facilitate, organize and aid in the development of Khadi and Village Industries in rural India together with other rural development agencies.

What is KVIC Scheme? 

Located under the Ministry of Micro, Small, and Medium Enterprises, KVIC was formed as an apex body to assist in planning, promoting, facilitating, organizing, and assisting in development of Khadi and Village Industries in rural India in cooperation with other agencies involved in rural development.

Read More | The 5 factors affecting interest rates

Details of the KVIC scheme:

Within the KVIC scheme list are various programs aimed at achieving the commission’s objectives.


The Ministry of MSME created the scheme to replace the Rural Employment Generation Program (REGP) and the Pradhan Mantri Rozgar Yojana (PMRY). In short, the Prime Minister’s Employment Generation Program (PMEGP) creates job opportunities across the country by providing credit-linked subsidy packages.

2. Certificate of Interest Subsidy Eligibility (ISEC):

KVIC Projects involving registered institutions are designed to be the primary source of information. This program mobilizes funds from financial institutions to bridge the budget allocation gap.

3. The Sustainable Fund for Regeneration of Traditional Industries (SFURTI):

Khadi and Village Industries products will be promoted as part of this program. To implement the scheme, KVIC will be the nodal agency.

4. Marketing Promotion Development Assistance (MPDA):

As a means to increase the income of artisans, this program is intended. Financial assistance will be distributed as follows:

  • Artisans: 40%
  • Producer: 40%
  • Seller: 20%

5. KRDP: Khadi Reform and Development Program:

Employing artisans and increasing their earnings are the main objectives of this program. It enables the Khadi to be repositioned under current demographic needs.

Khadi and Village Industries Commission Loan Eligibility Criteria:

Individuals and organizations can receive loans under the PMEGP program if they meet certain eligibility requirements.

1. Anyone over 18 years of age and who has passed the minimum class eight exam:

  • Rs.10 lakh (manufacturing unit).
  • Rs.5 lakh (service unit).

2. Members of Self Help Groups who have only taken one loan in the past.

3. Societies registered with the government.

4. Co-operative producer societies.

5. Trusts for charitable purposes.

6. Sectors eligible for the KVIC loan: The KVIC scheme only provides loans to a few sectors, including Sectors eligible for the KVIC loan: The KVIC scheme only provides loans to a few sectors including:

  • Food processing (Agro-based).
  • Hand-made fibres and paper.
  • Mineral Products.
  • Polymer and chemical products.
  • Forest products.
  • Rural engineering.
  • Biotechnology.
  • Service and textiles.

The following documents are required:

To access the KVIC online applications, you need a variety of documents.

  • The borrower must submit a variety of KYC documents.
  • The community or caste certificate determines eligibility for a particular category.
  • A subsidy claim is made following eligibility.
  • The bye-laws of the organization must be certified.
  • Documentation that demonstrates the rent or lease has not exceeded three years for the shed or premises.
  • Report covering capital expenditures and the working capital requirement for a cycle, with a breakdown of the costs.
  • The controlling office of the bank needs to certify that there is no need for working capital.

The rate of interest for the KVIV loan is:

The interest rate on KVIC and PMEGP loans is the same for MSME enterprises. Many banks charge between 11 and 12% interest rates at the moment. ISEC, however, charges 4% interest rates. Through the “Grants” head of the budget, the commission makes up the difference between this concessional rate and the actual chargeable. Khadi and Polyvastra manufacturers are the only ones eligible for this facility.

Online KVIC Application:

On KVIC’s website,, applications can be submitted online with the following URL: It is a detailed and comprehensive process requiring all personal information, including Aadhaar, date of birth, qualifications, location of the unit, operational information, loan details and details about the bank. To upload the digitized application format, save the application and then upload it. Once the application is submitted, the registered mobile number receives the username and password for future use.

Leave a Reply

Your email address will not be published.