Description

The Interest Subsidy Eligibility Certificate (ISEC) Scheme is an important mechanism of funding khadi programme undertaken by khadi institutions. It was introduced to mobilise funds from banking institutions for filling the gap between the actual fund requirements and availability of funds from budgetary sources.

Nature of assistance

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 4% is paid by the Central Government through KVIC to the lending banks.

Benefits of the ISEC Scheme

The following are the benefits that can be availed under this ISEC scheme.

• Under the ISEC Scheme, credit at the concessional rate of interest is made available as per the requirement of the institutions.
• The institution is required to pay only 4% interest rate. In case, the rate of interest charged by any banks is above 4% that will be paid by the Central Government through KVIC.
• All khadi institutions registered with the KVIC or State Khadi and Village Industries Boards (KVIBs) can avail of financing under the ISEC scheme.

Purpose of the ISEC Scheme

The main purpose of the ISEC scheme is to assist the registered Khadi sectors by filling the gap between the actual requirements of fund and availability of fund from the budgetary resources.

Eligibility Criteria

The industries that are eligible for Interest Subsidy Eligibility Certificate (ISEC) Scheme are explained below:

• The Khadi institutions which hold the valid Khadi certificate and sanctioned khadi programme.
• The Institutions registered with the Khadi and Village Industries Commission
  (KVIC) or State Khadi and Village Industries Boards (KVIBs).
• The Co-operative Societies which is registered under the co-operative societies Act.
• The trusts are created for public purposes that are charitable or religious.