ISEC Scheme 2026: Interest Subsidy for Khadi Institutions
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Quick answer
The ISEC Scheme provides a 4% interest subsidy on working capital for Khadi institutions. Eligible institutions can apply through their financing bank with the ISEC certificate. Submit required documents online or offline to receive the subsidy.
At a glance
| Main benefit | 4% interest subsidy on working capital |
| Ministry / department | Ministry Of Micro, Small and Medium Enterprises |
| Level | Central Government |
| Application mode | Offline |
About the scheme
The Interest Subsidy Eligibility Certificate (ISEC) Scheme is a central programme managed by the Ministry of Micro, Small and Medium Enterprises. It provides a concessional interest rate of 4% per annum on working capital for Khadi institutions, bridging the gap between actual lending rates and government support. Institutions with valid Khadi certificates and sanctioned programmes, registered with KVIC or State Khadi Boards, can avail of this subsidy by applying to their financing bank along with the ISEC certificate.
Benefits
- Interest Subsidy: Receive a subsidy on the interest charged on your education loan, lightening your financial burden.
- Affordable Education: Pursue professional or technical courses without worrying about high-interest rates, making education more accessible.
- Flexible Repayment: Enjoy flexible repayment options, allowing you to focus on your studies and career growth.
- Career Opportunities: With reduced financial stress, you can concentrate on building a successful future and exploring various career avenues.
- Empowerment: ISEC empowers deserving students to pursue higher education and realize their potential regardless of their economic background.
- Enhance Skills: Gain knowledge and skills in your chosen field, opening doors to better job prospects and higher earning potential.
- Supportive Network: Benefit from a supportive community of ISEC recipients, fostering connections and opportunities for collaboration.
Who can apply (eligibility)
- The Khadi institutions have valid Khadi certificates and sanctioned Khadi programmes.
- The Institutions registered with the KVIC/State Khadi and Village Industries Boards (KVIBs) can avail of financing under the ISEC Scheme, the Scheme supports only the khadi and the polyvastra sector.
Documents required
- Aadhaar Card
- Income certificate
- Caste certificate
- Bank account statement
How to apply
- 1Apply to the financing bank for working capital along with the ISEC certificate issued by KVIC.
- 2Submit the required documents to the bank.
- 3The bank will raise the reimbursement claim to the nodal branch for the differential interest rate over 4%.
Frequently asked questions
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.
NaukriZila is not a government website. Apply only on the official portal; never pay anyone to apply for a government scheme. Source: myScheme (Government of India)