Get your Free Credit Score
Check Now
Get the Best Business Loan Offer 
*Offers are from Paisabazaar's partner Banks & NBFCs.
Khadi and Village Industries Commission (The full form of KVIC) plans, promotes, organizes and implements programs for the development of Khadi and other village industries in rural areas nationwide. KVIC also helps in building up reserve of raw materials for supply to producers. The commission focuses in creation of common service facilities for processing of raw materials, such as semi-finished goods. KVIC has also helped in creation of employment in Khadi industry.
° Loan Amount for Manufacturing Sector: Maximum Rs. 25 lakh
° Loan Amount for Business and Service Sector: Maximum Rs. 10 lakh
KVIC loan can be availed by the following entities:
Prime Minister’s Employment Generation Programme (PMEGP) was launched in 2008 to replace The Rural Employment Generation Programme (REGP) scheme. Ministry of MSME launched PMEGP which is a credit linked subsidy program. The prime reason for launching this scheme is to create employment in rural and urban areas across the nation.
Under PMEGP, the beneficiaries are required to invest their own contribution of certain percentage of the project cost to avail subsidy. Mentioned below is a tabular representation of the amount required to be deposited by the beneficiaries:
| Categories of beneficiaries under PMEGP | Beneficiary’s contribution (of project cost) | Rate of Subsidy (of project cost) |
| Area (location of project/unit) | Urban/Rural | |
| General Category | 10% | 15%/25% |
| Special (including SC / ST / OBC /Minorities/Women, Ex-servicemen, Physically handicapped, NER, Hill and Border areas etc. | 5% | 25%/35% |
Note: The maximum cost of the project/unit admissible under manufacturing sector is Rs. 25 lakh.
The maximum cost of the project/unit admissible under business/service sector is Rs. 10 lakh.
The balance amount of the total project cost will be provided by Banks as term loan
Launched in 2005, SFURTI is a Scheme of Fund for Regeneration of Traditional Industries Ministry of MSME. The primary objective of SFURTI is to organize the traditional artisans and industries into groups to make them competitive and provide them with long-term sustainability. The financial support provided under SFURTI for any specific project shall be subject to maximum of Rs 8 crore. Institutions of the Central and State Governments and semi-Government institutions, Non-Government organizations (NGOs), Panchayati Raj institutions (PRIs), etc. can apply for this scheme.
Read: SFURTI Scheme – Funding Details, Objective and Full Form
The Interest Subsidy Eligibility Certificate (ISEC) Scheme is the major funding source for the Khadi programme. This scheme is applicable for all registered institutions of KVIC. This scheme was introduced to mobilize funds from banking institutions to bridge the gap in the actual fund requirement and its availability from budgetary sources. Under this scheme, funding is provided at a concessional rate of interest of 4% per annum for working capital purposes as per the requirements.
Market Promotion Development Assistance (MPDA): This scheme is launched to provide services like market promotion and development assistance for Khadi industries. The aim of this scheme is to ensure increased earnings for artisans.
Under the former MDA scheme, financial assistance was distributed amongst Artisans (25%), selling institutions (45%) and producing Institutions (30%). It goes 20% for selling institutions and 40% for both artisans and producing institutions.
Khadi Reform and Development Programme (KRDP) is formed for employment generation, enhancing the earning of artisans and ensuring the positioning of Khadi considering the present needs of Khadi industry. The main focus of this scheme is on Repositioning of Khadi and linking to market requirements, providing selective subsidy and enhanced remuneration.
Honey Mission aims to improve the livelihoods of the rural communities. It works around five dynamics that include:
MDA scheme is promotion assistance for development of Khadi which is paid at 20% on production. Approximately 25% of MDA is paid to the institution from which 25% is given to artisans as incentive and 30% is offered to institution for production and 45% for marketing purposes. Under MDA scheme, financial assistance of 25% is reserved for payment among weavers and spinners as an additional incentive through their post/bank office account.
KVIC also implements various other promotional activities for the development of different village industries, such as handmade paper, polymer, agro and chemical based, bee-keeping and other forest related activities. KVIC loans are offered by various financial institutions at attractive interest rates.
Just after its establishment, KVIC took over All India Khadi and Village Industries Board. KVIC operates via its network of zonal offices located in Delhi, Bhopal, Bangalore, Kolkata, Mumbai (HO) and Guwahati.
The interest subsidy scheme offered by KVIC shall be applicable to specific loans offered by financial agencies. Loans raised by KVIC for disbursement as capital investment and working capital loans are offered by:
Nice experience !! I think everone should try atleast comparing loan deal from paisabazaar as they are the best.
You guys are brilliant. made it so easy for me to take business loan at really low interest rate with easy EMIs and nominal processing fee. Thanks a lot.
I got the best deal from SBI to start my own Salon. Thanks Paisabazaar for making me choose the best deal available.
Thanks !! What an experience. Experienced staff and good customer care people...got loan from HDFC in very less time.
Was not very happy after getting a business loan from ICICI bank, as the interest rate was high but my score was below 700. I could have gone to any NBFC.
Running a garmet store is never easy after lockdown. I was in loss. Wanted loan to start a grocery store. Great that i got of from Bajaj Finserv with the help of paisabazaar.
