Good News| Credit Guarantee Trust Fund for PMEGP Bank Loan, Micro & Small Enterprises (CGT SME)
Credit Guarantee Trust Fund for PMEGP Bank Loan, Micro & Small Enterprises (CGT SME)
Interest Subsidy Eligibility Certificate (ISEC)
The Interest Subsidy Eligibility Certificate PMEGP Bank Loan (ISEC) Scheme is an
important mechanism of funding khadi programme undertaken by PMEGP Bank Loan, by khadi institutions.
It was introduced to mobilise funds from banking institutions for filling the gap between the actual fund requirements and availability of funds from budgetary sources.
Nature of assistance
Under the PMEGP Bank Loan ISEC Scheme, credit at a concessional rate of interest of 4% per annum for working capital, is made available as per the requirement of the institutions.
The difference between the actual lending rate and 4% is paid by the Central Government through KVIC to the lending banks.
Who can apply?
The Khadi institutions, having valid Khadi certificate and sanctioned khadi programme.
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.
How to apply?
The Khadi institutions will apply to the financing bank for working capital along with the ISEC certificate issued by KVIC.
Based on the working capital sanctioned, financing bank will raise the reimbursement claim to the nodal branch for the differential interest rate over and above 4%.
Whom to contact Dy. CEO, KVIC
Ph: 022-26710021
Email: kvicecr[at]gmail[dot]com
