About KVIC Scheme: Is there any culture everyone believes that? The answer is no. Because the views of each person differ. However, the life of everyone depends on agriculture. There is no doubt this culture is hugely accepted worldwide.

India mainly depends on cultivated income. Now things have changed. But the time when this nation got freedom it was totally different. It was the toughest phase for the nation. The problems like poverty, malnutrition, unemployment were taking a toll on the nation. Battling against these problems was the test for the government. Hence, many new schemes and plans came to place. So, to fight each problem several plans declared by the government. Some of them are for a shorter period and some others for the long term. The key focus is on boosting the economy of the nation.

Introduction To KVIC Scheme

This is the ambitious scheme of the government to help the nation. The newborn nation was looking for moving onward. We considered each step towards the progress as a big move in that stage. Because the nation was new with the new structure, rulers, etc. The government announced this scheme in the year 1956.

The KVIC scheme was formed as a statutory body. It was formed under the KVIC Act of 1956. The scheme aims at nursing in the employment sector. In addition, it aims to uplift the rural part of the nation. The rural area is an integral part of the country. Why it is important is more than 70 percent of people live in the rural parts. So, the rise in the standard of living of rural people will help the overall growth economy.

The KVIC full form is Khadi and Village Industries Commission. It is formed as a zenith body under the Ministry of MSME. The word khadi has its own importance.  Because this term related to freedom fighters. In the year 1920, Mahatma Gandhi started the swadeshi movement. Under this, it promotes the use of domestic products. As a result, the usage of hand-woven fabrics making increased. This was used as a form of rebelling against the British.  They were using a small wheel to get the fabrics.

Features of KVIC Scheme

The scheme itself is one of the long-term plans. It is operational from 1956. And still, people are getting help from this scheme. Certainly, to lost this much time it must have good features. So, let us look into those details.


This scheme provides the most vital aspect. That is a promotion for the products. Promotion is the major in the four ‘P’ s of marketing. It doesn’t matter if the product is excellent. Without this ‘P’ products will not find the buyer. But the big problem for rural industries is they can’t afford to make huge promotions. This is one of the reasons for rural industries’ failure.  Under this scheme, the promotion will be given.


The planning is another vital thing in getting success. The big companies have this main advantage. Because they will have separate sections to plan. Hence this assist also make available in this scheme. This project gives a perfect plan of action to get maximum efficiency. As a result, industries will live long.


Firstly the main downside of rural industries is the lack of organization. Under this scheme, this problem also was taken care of.


However, having a great plan and other things will not work until implementing these. Hence under this scheme, it gives help in implementing the plans. The extra guidance will be given to achieve this.

Raw Material Reserve

The main thing is the raw materials. The supply of raw material is the required thing. Hence it creates a reserve for the materials. So, whenever there is a shortage of the materials it helps the units. The effective management of this also a key point of this project. In short, it ensures that there will be no shortage of raw materials. This helps to make the product without the breaks.

Credit facility

To start anything capital is the basic need. Without money, many things will not happen. Thousands of people have many great ideas. But to execute any plan money is required. This scheme helps to meet that need. So, here talent meets the right capital. As a result, jobs will bloom.

The scheme is working on subsidies. This scheme is a credit-linked subsidy provided to boost employment in youths of the country. With this, it is aiming at giving a boost to the economy. The subsidy amounts will reach the candidates through the banks. As a result, the misuse of the funds will be stopped.

These are the main features of this scheme. This helps the village industries massively. In addition, the funds will meet the right people.

Benefits of KVIC Scheme

Employment Creation

The main aim of the Khadi Gram Udyog is to create jobs. By providing the credit it creates jobs. As a result, jobs will generate in rural areas. Many new ventures will start and so the jobs along with that. As a result, rural people will get the benefits of this scheme.

Till today the jobs created till today were more than 21 lakhs. This program has able to achieve its goals. More than 21 lakh people getting advantage of this plan. So, the numbers are kept on increasing.

Sustainable Employment

There are many more plans planned to create employment options. The creation of mere one-time jobs is not helpful. The constant jobs are important for the people. The jobs formed under this project are long term jobs in nature. Hence it creates a sense of security for the people.

Stoppage of migration

Certainly in the nation, we can see a big variance in the living population in cities and rural. As per the 2011 census, in cities 69 percent of people living. On the other hand, only 31 % of people are living in rural areas. The important thing is there is a big difference in the area. The rural region is more, and cities have less. Even in this state cities have more population. The root cause of this problem is employment.

The people from rural areas dwell in cities. They do the migration in the search of jobs. The cities provide more jobs. As a result, people leave their villages and settle in cities. Thus, by providing jobs in rural areas help to counter this big problem. With the creation of jobs in villages, people live there, and migration will reduce.

Support for artisans

This nation is the home of plenty of artisans. Till the rule of British this land known for its crafty works. Large scale industries led to the destruction of small industries. As a result, many artisans lost their jobs.

The bad thing is the famous handicraft of the nation is disappeared. As a result, thousands of people lost their jobs. The introduction of the Khadi Gram Udyog scheme gave hope for all the artisans. This scheme helps for the revival of famous arts and handicrafts. The project nurses and gives jobs for artisans. These kinds of jobs need small support to grow. And that support is provided from this scheme.

The scheme chiefly supports Khadi crafts. Hence the artisans find the support they truly deserve. So, it helps to increase the Khadi cloth productions.

Building the Khadi Brand

The Khadi Gram Udyog promotes the usage of Khadi. Khadi is an Indian homespun fabric. The artisans weave the cloths by using cotton. The cotton cloths are healthier than other fabrics. Hence it good for humans and also for the environment. In Khadi Gram Udyog these fabrics are promoted. In every state, it has Khadi boards. It encourages people to use Khadi clothes.

Now the Khadi brands have become famous. The youths also using these garments in day to day life. Now Khadi clothes are available online platforms. This has increased the demand for Khadi products. So, this change in marketing plan changes things on a big scale.

These are the main benefits of the scheme. Truly Khadi Gram Udyog helps to revive the old golden days of rich fabrics. So, it matters more.

More About KVIC Scheme


It has H.Q. in New Delhi. And it is supported by six zonal offices. Those are situated at Bhopal, Bengaluru, Kolkata, Mumbai, New Delhi, and Guwahati. In addition, this has other 29 offices across the nation. These offices help to implement the programs.


To have a better understanding it is essential to know the key terms.


This word was famous in the freedom movement. It has used as a weapon in the Swadeshi Movement. The meaning is hand – woven or hand-spun cloth. It is formed using the common Charka or a wheel. The raw materials are silk, cotton, and wool.

Village Industry

It denotes the production centers in rural areas. But as per the standard definition, it can be defined as any industry located in rural India. And with a fixed capital investment of rupees one lakh rupees per weaver.

KVIC Scheme Details

The KVIC is actually a bunch of schemes. Under this, there are a lot of schemes launched. They are as follows.


This PMEGP scheme is the replacement of two other schemes. Those two are REGP and PMRY. Firstly, both schemes are aiming at creating jobs.

Interest Subsidy Eligibility Certificate (ISEC)

It acts as a bridge between the banks and the beneficiaries. It mobilizes funds from banks to fill the gap of funds.

Scheme of Fund for Regeneration of Traditional Industries (SFURTI)

This SFURTI scheme also aims to create jobs. The primary focus under this plan is for cluster development involving Khadi and Village industries products. In addition, it is the nodal agency for the KVIC scheme.

Market Promotion Development Assistance (MPDA)

This aims to augment the income of artisans. It allocates the funds to three types of receivers. So, artisans and producers will get 40 percent each and the seller gets 20 percent.

Khadi Reform and Development Program (KRDP)

This aims at growing the income of artisans. In addition, it focuses on creating jobs.

KVIC Scheme Loan Details

Amount of Loan

The manufacturing sector will get a maximum of 25 lakh rupees of credit. The service sector can get up to 10 lakh rupees. It is fixed for both urban and rural areas.


The self-investments vary from place to place.  Self-investment for the units to be established in the plain area is a maximum of 1 Lakh. For the hilly areas, it is a maximum of 1.5 lakhs. That means the per capita investment is fixed.

There is an exception in the rules in certain things. There is a letup for people belonging to SC/ST, women, Physically challenged, ex-defense personnel and border areas. For example, the self-share of the project cost is 10 % for the general category. And it is 5% for special categories. The subsidy from the government for the general category in urban areas is 15%. For rural, it is 25%. For the special category, in urban it is 25%.  And for rural, it is 35%.

Loan Tenure

The tenure loan has a repayment of 3 to 7 years. The moratorium is 6 months in all banks. The rate of interest in a range of 11 to 12 % PA.

Eligibility Criteria for KVIC Loan-PMEGP Loan

The age of the individual must be of 18 years or above. They should have completed class VIII exams in schools. The size of the project must meet the criteria. The criteria for manufacturers over 10 lakhs and over 5 lakhs for the service sector.

There is no income ceiling that is relevant for the loan. The loan is only for new ventures and for those ventures who have not availed benefits from other schemes.

Documents Required for KVIC Scheme

The required forms are as follows.

All KYC documents of the borrower required including Aadhar, PAN, EPIC, etc. The caste certificate is a must. A claim for the subsidy. A form showing the project costs.

Procedure for KVIC Loan Application

KVIC application form

KVIC application form

One must visit the official website to fill online application. The filling of the application form is simple. This consists of 3 parts.

Firstly, personal details are to be filled in the form.

In the second phase, needs to enter all the information pertaining to scheme status including the desired loan amount with the bank account details. And lastly, submission of the documents in digital form.


In short, the Khadi Gram Udyog is a very important scheme for the government. Firstly the creation of jobs and boosting the rural economy are the prime objectives. As a result, the scheme is adding the artisans from 1956 onwards. Hence it enriched many lives.  The application process and getting the benefits are easiest in this scheme. So, we hope it will help the upcoming generation as well.

Website: http://www.kvic.gov.in/kvicres/index.php