Interest Subsidy Eligibility Certificate (isec) Scheme

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.

1. Interest Subsidy: Receive a subsidy on the interest charged on your education loan, lightening your financial burden.
2. Affordable Education: Pursue professional or technical courses without worrying about high-interest rates, making education more accessible.
3. Flexible Repayment: Enjoy flexible repayment options, allowing you to focus on your studies and career growth.
4. Career Opportunities: With reduced financial stress, you can concentrate on building a successful future and exploring various career avenues.
5. Empowerment: ISEC empowers deserving students to pursue higher education and realize their potential regardless of their economic background.
6. Enhance Skills: Gain knowledge and skills in your chosen field, opening doors to better job prospects and higher earning potential.
7. Supportive Network: Benefit from a supportive community of ISEC recipients, fostering connections and opportunities for collaboration.

1. The Khadi institutions have valid Khadi certificates and sanctioned Khadi programmes.
2. 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.

Offline

1. 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%.