What is the ISEC Scheme?

Eligibility criteria may vary, but generally, Indian citizens pursuing professional or technical courses with a family income within specified limits are eligible for the scheme.

How can I apply for the ISEC Scheme?

To apply for the ISEC Scheme, you need to fill out the official application form and submit it along with the required documents to the designated authority responsible for implementing the scheme.

Who is eligible for the ISEC Scheme?

Eligibility criteria may vary, but generally, Indian citizens pursuing professional or technical courses with a family income within specified limits are eligible for the scheme.

What is the benefit of the interest subsidy?

The interest subsidy reduces the financial burden on education loans by providing a subsidy on the interest charged during the moratorium or study period.

Can I apply for the ISEC Scheme after taking an education loan?

Yes, you can apply for the ISEC Scheme even if you have already taken an education loan, provided you meet the eligibility criteria and other requirements.

Is there a specific income limit for eligibility?

Yes, there are specified income limits for eligibility. These limits may vary depending on the scheme's guidelines and implementing authority.

Are there any exclusions from the ISEC Scheme?

Some exclusions may apply, such as non-eligible courses, non-Indian citizens, loans exceeding the specified amount, and individuals already availing of similar financial assistance schemes.

How is the interest subsidy disbursed?

The interest subsidy is typically disbursed directly to the loan account of the eligible student through the designated bank.

Can I track the status of my ISEC Scheme application?

Yes, you can inquire about the application status by contacting the designated authority responsible for the scheme implementation.

Where can I find more information about the ISEC Scheme?

You can refer to the official government portals, and scheme websites, or contact the implementing authority for detailed information regarding the ISEC Scheme.

Interest Subsidy Eligibility Certificate (ISEC) Scheme

By Expertie Editorial Team · Expertie editorial desk

Overview

About ISEC

The Interest Subsidy Eligibility Certificate (ISEC) Scheme is a working-capital financing route for khadi institutions, run by the Khadi and Village Industries Commission (KVIC), a statutory body under the Ministry of Micro, Small and Medium Enterprises. KVIC introduced it in May 1977 to help khadi and polyvastra producing institutions raise funds from banks, filling the gap between what these institutions need and what budgetary sources can release.

The benefit is delivered as an interest subsidy rather than a cash grant. An eligible institution pays only 4% interest on the working-capital loan it takes from a bank. Where the bank charges more than 4%, the Central Government meets the difference through KVIC, so the higher market rate does not fall on the institution.

The scheme is meant for khadi institutions that hold a valid khadi certificate and a sanctioned khadi programme, and that are registered with KVIC or with a State Khadi and Village Industries Board. The certificate lets an institution approach a bank for credit, but it does not guarantee a loan: the bank keeps the final decision to sanction or reject the amount, and the subsidy applies to the loan actually drawn.

Sources: Khadi and Village Industries Commission (KVIC) – ISEC Scheme · myScheme – Interest Subsidy Eligibility Certificate (ISEC) Scheme · IndiaFilings – Interest Subsidy Eligibility Certificate (ISEC) Scheme

Who runs it

Provider

Ministry Of Micro, Small and Medium Enterprises

Central Government

Central Sector Scheme

At a glance

Key details

Level	Central
Scheme type	Central Sector Scheme
Category	Education & Learning
Beneficiaries	Business Entity
Benefit type	In Kind
Application mode	Offline

Calendar

Important dates

Across all open application cycles.

Important dates by cycle
Cycle	Stage	Date

Who can apply

Eligibility criteria

The applicant must be a khadi institution.
The applicant must have a valid Khadi Certificate.
The applicant must have a sanctioned khadi programme.
The applicant must be registered with Khadi and Village Industries Commission (KVIC) or State Khadi and Village Industries Boards (KVIBs).

What you get

Award & benefits

Interest Subsidy: Loans available at a concessional interest rate of 4% per annum for working capital. - Subsidy Support: The difference between the actual bank interest rate and 4% is paid by the Central Government through the Khadi and Village Industries Commission (KVIC). - Funding Support: Helps bridge gap between required funds and budgetary allocation. - Sector Coverage: Applicable for khadi and polyvastra sector only.

What to prepare

Documents required

Aadhaar Card.

Income certificate.

Caste certificate.

Bank account statement.

Step by step

How to apply

1
Apply offline
See the official links below for the application portal.

Source

Official links

Scheme Details Guidelines myScheme (Government of India)

Questions

ISEC – FAQ

Disclaimer

Scheme details are compiled from myScheme, the Government of India’s official scheme-discovery platform, and are reproduced without alteration. Amounts, deadlines and eligibility change between cycles — always confirm on the official links above before applying. Expertie does not process applications or charge fees.

AICTE - Grant For Augmenting Infrastructure In North Eastern Region Access to Knowledge for Technology Development and Dissemination (A2K+) AlCTE - Distinguished Professional Scheme ASEAN-India Research Training Fellowship INAE Travel Grant Scheme for Engineering Students from IITs/NITs/Govt. Approved Engineering Colleges/Institutions other than AICTE AICTE - Scheme For Promoting Interests, Creativity And Ethics Among Students

Interest Subsidy Eligibility Certificate (ISEC) Scheme(ISEC)