Khadi Gramodyog Vikas Yojana: Khadi Vikas Yojana
Ministry of MSME · Central government
The KVIC–MSME umbrella scheme funds Khadi institutions and artisans with production subsidies, interest subvention, and infrastructure support.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- ₹80,000 – ₹25,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Released against milestones
About this scheme
The Khadi Vikas Yojana operates as an umbrella initiative within the Khadi Gramodyog Vikas Yojana, administered by the Khadi and Village Industries Commission (KVIC) under the Ministry of Micro, Small and Medium Enterprises (MSME), Government of India. Its stated purpose is to strengthen the Khadi sector through coordinated assistance to Khadi institutions and individual artisans, covering financial aid, infrastructure development, interest subvention on bank loans, and marketing support.
The scheme addresses the viability of Khadi products through direct production subsidies, which lower costs and encourage output. A key feature is the interest subsidy, under which KVIC bears the difference so that institutions pay only a minimal rate on their borrowings. Support is also extended for constructing worksheds, improving working conditions, and upgrading weaker institutions. Marketing infrastructure, including the renovation of sales outlets, receives attention, alongside quality assurance, exhibition participation, science and technology interventions, and the creation of Centres of Excellence for Khadi.
Who can apply
- Eligible business forms
- Private limited company, Limited liability partnership, One person company, Partnership firm, Sole proprietorship
- Udyam registration
- Not specified
- MSME registration
- Not specified
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Not restricted
- Applicant must be a Khadi artisan or Khadi Institution registered with KVIC or KVIB. - Age must be between 18 and 55 years. - Must hold a valid Aadhaar card or other government-issued ID. - Only one person per family is eligible. - Applicant must not have previously availed benefits from any other government scheme for the same purpose. - Preference is given to applicants from SC/ST, women, unemployed youth, and BPL categories. - Beneficiaries may be identified and recommended by KVIC, KVIBs, NGOs, DICs, FPOs, or existing Khadi Institutions.
How to apply
- **Step 1: Access the Portal**: Go to the official KVIC website to begin your application for the scheme. - **Step 2: Register Online**: On the portal, select the 'Online Registration of Khadi Institutions' option to start the registration procedure. - **Step 3: Provide Information**: Fill out the application form with all necessary institution details, such as its name, location, registration type, authorised person's information, artisan count, and current infrastructure. Verify that every entry is correct before submitting the form. - **Step 4: Obtain Login Details**: Once the initial form is submitted successfully, a unique Username, Password, and Unique ID will be sent to your registered email and mobile number. Save the acknowledgment for your records. - **Step 5: Sign In and Submit Documents**: Use the credentials provided to access the applicant portal. Then, upload all required supporting files, including the registration certificate, artisan list, workshed details, and organisational bylaws. - **Step 6: Review and Certificate Issuance**: The KVIC office will examine your application and the documents you have uploaded. If approved, your Certificate of Registration (CoR) will be issued online and can be downloaded from the portal.
How applications are assessed
The assessment for the Khadi Vikas Yojana operates through an online submission and validation workflow. Applicants, whether individual artisans or institutions, file their forms and supporting documents via the KVIC portal. The KVIC office then conducts a detailed review of the submitted data, covering institutional registration, artisan particulars, and compliance with the stated eligibility norms. Once this verification concludes favourably and the application receives approval, the Certificate of Registration (CoR) is granted.
The screening procedure may give weight to applicants from SC/ST, women, unemployed youth, and BPL categories, provided a quota or preference framework is active. The scheme text explicitly notes this prioritisation, which could shape the order of processing or selection where such a system exists.
Frequently asked questions
What is the primary objective of the Khadi Vikas Yojana?
The scheme provides financial assistance, infrastructure development, interest subsidy, and marketing support to Khadi institutions and artisans, aiming to improve their productivity and market presence.
Who is eligible to apply for this scheme?
Khadi artisans or Khadi Institutions registered with KVIC or KVIB qualify, provided applicants are aged 18–55, hold a valid ID, and have not received benefits from other government schemes for the same purpose.
What kind of financial assistance is available?
The scheme subsidises Khadi production by up to 35% of prime cost, lowers the effective interest rate to 4% through interest subvention, and offers financial assistance of up to ₹1.2 lakh for artisan worksheds and up to ₹25 lakh for institutional and marketing infrastructure.
How can Khadi Institutions apply for the scheme?
Applications are submitted online via the KVIC portal, where institutions must register, provide the necessary details, and upload documents. After verification, a Certificate of Registration (CoR) is issued.
Is there any age restriction for individual artisans?
Yes, individual Khadi artisans must be aged between 18 and 55 years to qualify for benefits under the scheme.
Sectors
- Agri Food Rural
- Manufacturing Industrial
- Khadi
- Artisans
- Msme
- Rural Development
- Handloom
- Subsidy
- Infrastructure
Details last verified on 3 August 2026. Source: the issuer's published information.