Central government · Khadi and Village Industries Commission

KVIC Market Development Assistance and Interest Subsidy Eligibility Certificate for khadi institutions KVIC MDA and ISEC

Support for registered khadi institutions, a production-linked grant shared with spinners and weavers, and bank loans at 4% interest with KVIC paying the rest.

Last updated on

Status
Open
Run by
Khadi and Village Industries Commission, Ministry of MSME
Official website (external site)

What you get

  • Market Development Assistance of 30% of the prime cost of khadi production, paid by DBT and shared 30% to artisans, 10% to other workers, 40% to the producing institution and 20% to selling institutions
  • ISEC lets registered institutions borrow from banks and pay only 4% interest, with KVIC paying the difference as interest subsidy

Who can apply

  • Businesses that are already running.
  • Open to businesses in handicrafts and manufacturing.
  • Only for khadi and village industry institutions registered with KVIC or a state KVI Board
  • Individual owners cannot apply directly. Spinners and weavers get their share through the institution.

Where to apply

In person, KVIC office or Kerala Khadi and Village Industries Board

In Kerala, for khadi institutions registered with KVIC or the Kerala Khadi and Village Industries Board. PIB says 30 khadi institutions in Kerala run KVIC programmes across 594 villages.

Figures you may see elsewhere

The KVIC home page gives MDA as 30% of prime cost with 30% going to artisans. The older KVIC MDA page says 25% of the assistance goes to spinners and weavers. The home page is shown.

Worth knowing

KVIC's site lists both as current schemes, updated 4 November 2026, but states no current approval period. ISEC dates from May 1977 and MDA from 1 April 2010.

Where we found this

An independent guide by The Company of Four, not a government website. Schemes change often, so check every detail on the official website before you apply. Links marked ↗ open external websites that we do not run, and we are not responsible for their content. Seen something out of date? Tell us and we will look into it.

Related

External website

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