About this education scheme
The Interest Subsidy Eligibility Certificate (ISEC) Scheme offers loans at 4% interest to khadi institutions. There is no last date for application. Apply offline through the financing bank.
The Interest Subsidy Eligibility Certificate (ISEC) Scheme supports khadi institutions by providing loans at a lower interest rate. It is run by the Ministry of Micro, Small and Medium Enterprises.
The scheme aims to help these institutions meet their working capital needs.
By offering loans at 4% interest, it reduces the financial burden on khadi institutions and promotes the khadi sector.
Benefits at a glance
| Scheme name | Interest Subsidy Eligibility Certificate (ISEC) Scheme (ISEC) |
|---|---|
| Launched by | Ministry Of Micro, Small and Medium Enterprises |
| Benefit | The Interest Subsidy Eligibility Certificate (ISEC) Scheme offers loans at 4% interest to khadi institutions. |
| Benefit type | In kind (goods, services or support, not cash) |
| Category | Education |
| Level / State | Central · All India |
| Official portal | msme.gov.in (link at the end of this page) |
Key facts
| Scheme type | Central Sector Scheme |
|---|---|
| Scheme for | Infra |
| Application mode | Offline |
| Last date | Ongoing (no last date notified) |
| Age | No lower limit to 80 years |
Who can apply (quick check)
- 👤All genders
- 🎂Age 0 to 80 years
- 💼Student
- 📝Offline
Quick check from official data. Full conditions are in the Eligibility section.
इंटरेस्ट सब्सिडी एलिजिबिलिटी सर्टिफिकेट (ISEC) योजना खादी संस्थानों को 4% ब्याज पर ऋण प्रदान करती है। आवेदन के लिए कोई अंतिम तिथि नहीं है। वित्तीय बैंक के माध्यम से ऑफलाइन आवेदन करें।
The Interest Subsidy Eligibility Certificate (ISEC) Scheme offers loans at 4% interest to khadi institutions.
What you receive
- Loans at a concessional interest rate of 4% per annum.
The difference between the actual bank interest rate and 4% is paid by the Central Government. This subsidy is reimbursed to the bank through the Khadi and Village Industries Commission (KVIC).
Who qualifies
- The applicant must be a khadi institution.
- The applicant must have a valid Khadi Certificate.
- The applicant must have a sanctioned khadi programme.
- The applicant must be registered with KVIC or State KVIBs.
Who is not eligible
- No specific exclusions mentioned, but generally, non-khadi institutions are not eligible.
Papers to keep ready
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Registration walkthrough
- Apply to the financing bank for working capital.
- Submit the Interest Subsidy Eligibility Certificate issued by KVIC.
- The bank will sanction the working capital loan based on the requirement.
- The bank will raise a reimbursement claim for interest subsidy.
- The subsidy amount is reimbursed through KVIC.
To check the status of your application, contact the designated authority responsible for the scheme implementation.
Real-life examples: are you eligible?
A quick way to gauge your eligibility: find the profile nearest to yours.
Every case differs. Confirm your eligibility on the official portal before applying.
- Not having a valid Khadi Certificate.
- Applying without a sanctioned khadi programme.
- Failing to register with KVIC or State KVIBs.
- Submitting incomplete documents.
- Not applying through the correct financing bank.
Frequently asked questions
What is the ISEC Scheme?
It provides concessional loans at 4% interest to khadi institutions.
How can I apply for the ISEC Scheme?
Fill out the application and submit it to the financing bank.
Who is eligible for the ISEC Scheme?
Khadi institutions with a valid Khadi Certificate and sanctioned programme.
What is the benefit of the interest subsidy?
It lowers the interest rate on loans for khadi institutions.
Is there a specific income limit for eligibility?
Yes, but check the official notification for details.
Can I apply after taking an education loan?
Yes, if you meet the eligibility criteria.
How is the interest subsidy paid?
It is reimbursed directly to the bank by KVIC.
How do I track my application status?
Contact the designated authority for updates.
Submit your application yourself on the official portal; it costs nothing. Treat anyone demanding money to "get you approved" as a scam.
- Guidelines msme.gov.in (PDF)
tsmpb.in is not affiliated with any government department. Apply only on the official portal and never pay anyone for an application.
First draft prepared with editorial AI tools; every fact verified against the official notification and rewritten by our team.
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