Khadi and Village Industries Commission (KVIC)

The Khadi and Village Industries Commission (KVIC) is a statutory organisation established by the Government of India in 1957 under the Khadi and Village Industries Commission Act. It operates under the Ministry of Micro, Small and Medium Enterprises and works to promote rural development through traditional industries. 

KVIC’s mission is to create sustainable jobs in villages by encouraging the production of khadi, hand-spun fabrics, and other locally made goods. It supports artisans and small producers with training, financial aid, and marketing assistance, helping them compete in wider markets while preserving India’s cultural and craft heritage.

The Khadi and Village Industries Commission (KVIC) strengthens India’s rural economy by empowering artisans, promoting sustainable village industries, and building self-reliant communities through its key objectives:

Promoting Sustainable Khadi Production

KVIC encourages the use of Khadi as a symbol of eco-friendly living and self-reliance. It supports artisans in producing high-quality, sustainable fabrics that reflect India’s cultural and environmental values.

Boosting Growth of Village Industries

The commission helps small and traditional industries grow by providing financial aid, resources, and guidance. These industries create employment, stimulate rural economies, and reduce dependence on urban areas for livelihood.

Creating Rural Employment Opportunities

KVIC generates jobs for artisans, weavers, and skilled workers in rural and semi-urban regions. Its initiatives help communities achieve economic stability and contribute to India’s broader development goals.

Preserving India’s Traditional Crafts

A vital objective of KVIC is to safeguard India’s heritage of handcrafts and indigenous skills. By modernising production while maintaining authenticity, it ensures these traditions remain relevant and profitable.

Expanding Market Reach for Rural Products

KVIC builds strong marketing networks to promote Khadi and village industry products both in India and abroad. This exposure helps rural entrepreneurs increase sales, brand recognition, and long-term sustainability.

Providing Financial Support to Entrepreneurs

The organisation offers easy access to funding through loans and grants for individuals and small enterprises. This support helps rural entrepreneurs start or expand their businesses confidently and sustainably.

Empowering Women in Rural Communities

KVIC focuses on increasing women’s participation in rural industries by offering training and financial aid. This empowerment enhances family incomes and strengthens community development at the grassroots level.

The Khadi and Village Industries Commission (KVIC) strengthens rural India by empowering artisans, promoting traditional crafts, and driving sustainable livelihoods through the following key functions:

• Designs and executes new projects and schemes to expand employment and rural industrial development

• Plans and implements national programmes aimed at the growth and modernisation of Khadi and village industries

• Provides financial assistance through grants, loans, and subsidies to help artisans and small enterprises grow

• Coordinates with government bodies and development agencies to ensure effective execution of rural initiatives

• Promotes marketing opportunities for Khadi and village products through exhibitions, fairs, and sales networks

• Builds partnerships with domestic and international agencies to increase market access and brand visibility

• Encourages research, innovation, and skill development to improve productivity and quality in the KVI sector

• Conducts training programmes to enhance technical knowledge and address production challenges

• Maintains an efficient supply of raw materials and creates shared facilities for processing and manufacturing

• Enforces quality standards to preserve authenticity and prevent the sale of counterfeit products

KVIC runs several key programmes that help you start small businesses, upgrade traditional skills, and create steady income opportunities in rural areas:

Prime Minister’s Employment Generation Programme (PMEGP)

The PMEGP scheme supports you in setting up a new micro-enterprise with a credit-linked subsidy that reduces your overall loan burden. It helps you gain easier access to bank finance and encourages self-employment in both rural and urban areas.

Honey Mission

The Honey Mission promotes beekeeping as a low-cost and profitable activity that supports rural households. It raises income for farmers and Adivasi communities while improving crop pollination and supporting environmental balance.

SFURTI (Scheme of Fund for Regeneration of Traditional Industries)

SFURTI strengthens traditional industries by organising artisans into clusters and giving them access to better tools, training, and market support. It helps you improve product quality, adopt new technology, and sell your goods to wider markets.

Rebate on Interest for Women Entrepreneurs

This scheme encourages women to start or expand small units in khadi and village industries by offering a rebate on loan interest. It reduces the financial load on women borrowers and supports greater participation in rural enterprise activities.

Khadi Reform and Development Programme (KRDP)

KRDP aims to raise the income of spinners and weavers by modernising production systems and improving product appeal. It also supports growth in village industries such as honey, herbal products, handmade paper, agro-foods, and leather.

Interest Subsidy Eligibility Certificate (ISEC)

The ISEC scheme helps registered khadi institutions access working capital at a concessional interest rate of 4%. The government pays the remaining interest directly to the bank, making it easier for producers to manage cash flow.

To apply for a KVIC loan, you need to meet certain basic requirements set under the Prime Minister’s Employment Generation Programme (PMEGP):

• The applicant must be an Indian citizen above 18 years of age

• There is no income limit for those applying for financial assistance under this scheme

• For manufacturing projects costing above ₹10 Lakhs or service projects above ₹5 Lakhs, the applicant must have passed at least Class VIII

• Financial support is available only for new projects approved specifically under the PMEGP scheme

• Self-Help Groups, including those from Below Poverty Line (BPL) families, can apply if they have not received benefits from any other government scheme

• Institutions registered under the Societies Registration Act, 1860, are eligible to apply

• Production cooperative societies and charitable trusts can also seek assistance under KVIC loans

• Existing units that have already availed subsidies under any other central or state government scheme are not eligible for fresh assistance

You can apply for a KVIC loan online by following a simple step-by-step process that helps you complete your application quickly and without confusion:

1. Visit the official PMEGP portal to begin your online loan application

2. Create your user account by verifying your Aadhaar details and generating a login ID and password

3. Log in to the portal and fill in your basic personal, business, and bank details

4. Upload all required documents, including your photo, Aadhaar card, certificates, and project report

5. Complete the scorecard section and check that all the information entered is correct

6. Save your entries and proceed to the final submission page

7. Submit your application and note the application ID sent to your registered email address
    

If needed, you can track your application status on the portal until the loan is approved and the subsidy is processed.

The Khadi and Village Industries Commission helps you build a stable livelihood by supporting traditional skills, rural enterprises, and small business growth. With access to schemes like the KVIC loan, you can secure funding, training, and market support to start or expand your venture. Whether you are scaling a rural unit or exploring a business loan to launch a new commercial project, these opportunities guide you towards self-reliance and long-term economic confidence.