The Khadi and Village Industries Commission (KVIC) is a statutory body established by an Act of Parliament (No. 61 of 1956, as amended by act no. 12 of 1987 and Act No.10 of 2006. In April 1957, it took over the work of the former All India Khadi and Village Industries Board.
Why did KVIC come into force?
The KVIC is authorized to establish and maintain separate organizations for the purpose of carrying out any or all of the above matters besides carrying out any other matters incidental to its activities.
The broad objectives that the KVIC has set before it is…
• The social objective of providing employment.
• The economic objective of producing saleable articles.
• The wider objective of creating self-reliance amongst the poor and building up a strong rural community spirit.
Features of KVIC
° Loan Amount for Manufacturing Sector: Maximum Rs. 25 lakh
° Loan Amount for Business and Service Sector: Maximum Rs. 10 lakh
- Funding Pattern: Mentioned below in PMEGP Scheme
- Repayment Tenure: From 3 years – 7 years, including 6 months of the moratorium period
- Income Capping: No criteria
- Margin: Lock-in for 3 years in separate account later adjusted with KVIC loan
- Interest Rate: Depends on the applicant’s profile and business requirements
- Loans offered are directed and governed by PMEGP under which is below-mentioned criteria for specific MSMEs:
Eligibility of KVIC
- Individuals of minimum 18 years of age with 8th class pass certificate
- Self Help Groups
- Registered and Co-operative Societies
- Charitable Trusts
Schemes under Khadi and Village Industries Commission (KVIC)
1) Prime Minister’s Employment Generation Programme (PMEGP)
2) Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
3) Interest Subsidy Eligibility Certificate (ISEC)
4) Market Promotion Development Assistance (MPDA)
5) Khadi Reform and Development Programme (KRDP)
6) Beekeeping – The Honey Mission
7) Market Development Assistance (MDA)
Is collateral/security required in KVIC Scheme?
No, any type of collateral/security is not required in KVIC Scheme.