Khadi Gramodyog Vikas Yojana: Khadi Vikas Yojana
Ministry of MSME · Central government
The KVIC-MSME umbrella scheme funds Khadi institutions and artisans with financial aid, production subsidies, interest relief, 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 functions as an umbrella initiative within the broader Khadi Gramodyog Vikas Yojana. It is administered by the Khadi and Village Industries Commission (KVIC), operating under the Ministry of Micro, Small and Medium Enterprises (MSME), Government of India. The scheme aims to strengthen the Khadi sector by providing varied assistance to Khadi institutions and individual artisans, including financial support, infrastructure development, interest subvention on bank loans, and marketing aid.
Provisions under the scheme are intended to improve the viability and competitiveness of Khadi products. Direct subsidies on production help lower costs and encourage manufacturing. An interest subsidy component reduces the financial burden on Khadi institutions, which pay only a minimal rate on bank loans while KVIC covers the remainder. The scheme also supports the construction of worksheds for artisans, improves working conditions, and assists weaker Khadi institutions in becoming more robust. Marketing infrastructure is modernised through the renovation of sales outlets, alongside measures for quality assurance, participation in exhibitions, science and technology interventions, and the creation of Centres of Excellence dedicated to 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
1. Access the KVIC online portal. 2. Select the 'Online Registration of Khadi Institutions' link to start the process. 3. Provide the institution's name, address, registration type, authorised person's details, artisan count, and existing infrastructure in the application form. Confirm accuracy before saving. 4. Upon form submission, a Username, Password, and Unique ID are sent to your registered email and mobile number. Save the acknowledgment for later use. 5. Log in with these credentials and attach supporting documents, including the registration certificate, artisan list, workshed details, and organisational bylaws. 6. The KVIC office reviews the application and documents. Once approved, the Certificate of Registration (CoR) is issued online for download.
How applications are assessed
Applications under the Khadi Vikas Yojana are processed through an online submission and verification workflow. After an artisan or institution files the application and supporting documents on the KVIC portal, the KVIC office reviews the information supplied. This review covers the institution's registration status, artisan particulars, and compliance with the eligibility conditions. Once the verification is completed and the application is approved, the Certificate of Registration (CoR) is granted.
The screening may give weight to applicants from SC/ST, women, unemployed youth, and BPL categories, where a quota or preference framework 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 boost their productivity and market reach.
Who is eligible to apply for this scheme?
Khadi artisans and Khadi Institutions registered with KVIC or KVIB can apply, provided applicants are aged 18 to 55 years, 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, offers up to ₹1.2 lakh for artisan worksheds, and provides 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 the scheme's benefits.
Sectors
- Agri Food Rural
- Manufacturing Industrial
- Khadi
- Artisans
- Msme
- Rural Development
- Handloom
- Subsidy
- Infrastructure
Details last verified on 7 September 2026. Source: the issuer's published information.