December 30, 2022
Swathi v prabhu

KVIC- objectives, features, scheme, and eligibility

Khadi village industries commission or more commonly known as KVIC was established in the year 1956 and is a statutory body implemented by the parliament of India. It was credited with the planning, promotion, organization, and implementation of the program for the development of Khadi and other village industries in the rural areas along with agencies engaged in rural development.

The organization was constituted under the small, micro, and medium enterprises aimed to build up a reserve of raw materials for supplying to the producers. These producers are connected with the Khadi and village industries in India with other agencies such as PMEGP, ISEC, and CGTMSE where rural development is necessary.

Let us understand a bit more about this commission

The objectives of KVIC

 First, let us understand the main purposes or the reasons why the Khadi village and industrial commission were established. The following objectives of this commission are as follows:-

1. Promotion of Khadi in rural India. Khadi is a crude material fabric, either cotton, silk, or fleece, which is hand spun or woven into a fabric. Its significance arrives during the fight for independence when mahatma Gandhi popularized this fabric as a way to avoid foreign goods

2. To provide training to artisans in these industries

3. The main objective of this commission is to provide employment. This is the social aim.

4. The economic aim of this commission is to produce saleable articles  

5. To encourage research studies in production techniques/equipment in Khadi or aspects of the village industries sector

6. To build self-reliance and a strong community spirit

7. To provide financial help through funds and schemes such as CGTMSE, PMESP, and ISEC, or to guide individuals in creating, developing, or operating a Khadi village.

The commission is trying different methods and ways to achieve the following objectives within a specific time frame.

Features of KVIC

Some of the important features of the KVIC are:-

1. Rate of interest- the interest rate depends on the business requirements and profile of the individual

2. Business loans-  the loans offered under this scheme are governed by the PMEGP under these criteria for a particular MSMEs

3. The maximum loan amount offered under this scheme to the manufacturing sector is Rs.25 lakhs

4. The maximum loan amount offered under this scheme to the business and service sector is Rs.10 lakhs

5. The repayment tenure is around 3-7 years. Including the 6 months moratorium period.

Margin lock-in for 3 years, to be later adjusted with the KVIC loan amount.

Interest rate subsidy scheme under KVIC

The interest rate subsidy scheme offered under the KVIC scheme applies to specific business loans offered by financial institutions like CGTMSE. The business loans offered under this scheme apply to certain specific institutions such as:-

1. The institution was registered under the societies registration act of 1860

2. The cooperative societies registered under the cooperative societies act of 1912:

3. Charitable trusts working for religious purposes or public welfare

4. Financial institutions such as scheduled or non-scheduled banks, nationalized banks, cooperative societies, state financial cooperation, or industrial development banks.

Who are eligible to avail of the KVIC loan?

 The eligibility criteria for individuals to avail of loan facilities under the KVIC scheme are as follows:-

1. Individuals who are a minimum of 18 years or above. And who has passed the 8th class, with a certificate

2. Self-help groups

3. Registered and cooperative societies

4. Charitable trusts

And many more entities are entitled to avail of KVIC loan facilities.

Schemes under KVIC

1. Prime minister’s employment generation program- PMEGP

The PMEGP is a credit-linked subsidy program launched in the year 2008. The primary aim of this scheme is to develop employment rates across urban and rural India.

Under the PMEGP scheme, individuals must invest a certain percentage of the cost of the project to avail of the subsidy.

2. The scheme fund under the fund for regeneration of traditional industries ministry- SFURTI

SFURTI is a scheme that was launched in the year 2005, with the primary objective of categorizing traditional artisans and industries into groups and providing long-term sustainability via financial support.

The central government, state government, non-government organizations, and Panchayati raj institutions are all eligible to apply for this scheme

3. Khadi reform development program- KRDP

KRDP was formed with the purpose of enhancement towards employment generation, improving the earnings of artisans, and making sure the presence of Khadi in the market is seen.

4. Market promotion development assistance- MPDA

The MPDA was established to provide market development and assistance to Khadi industries. This initiative aims to ensure increased earnings for the artisans.

These are some of the schemes launched for the promotion or sustainability of Khadi in the market.


1. What are the functions of KVIC? 

The KVIC is charged with the planning, promotion, organization, and implementation of programs for the development of Khadi and other village industries in the rural areas in coordination with other agencies engaged in rural development wherever necessary. 

2. Who can apply for KVIC?

Any adult beneficiary above 18 years is eligible for financing under PMEGP. 

3. What is the difference between KVIC and KVIB?

Khadi and Village Industries Commission (KVIC) is the nodal implementing agency at the national level. KVIC, Khadi & Village Industry Boards (KVIB), and District Industry Centers (DIC) are the implementing agencies in the States. 

4. How can I get a KVIC certificate?

The prospective Khadi Institutions can apply online for registering their institution and issuance of Khadi Certificates. The online application can be accessed through the KVIC website or and click on “Khadi Institutions Registration Sewa”


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