Personal Interest Subsidy Scheme
Uttarakhand State Khadi and Village Industries Board · Central government
Uttarakhand Khadi Board scheme subsidises interest on bank loans up to ₹5 lakh for rural entrepreneurs setting up industries.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Up to ₹5,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
About this scheme
The Personal Interest Subsidy Scheme, introduced in 2016 by the Uttarakhand State Khadi and Village Industries Board under the Government of Uttarakhand, supports individuals seeking to establish small-scale industries that use local raw materials and community enterprise. It provides financial assistance through bank-financed projects up to ₹5.00 lakh, reducing initial capital requirements and ongoing operational costs.
The scheme targets rural residents, particularly educated unemployed youth and women, helping them move from job-seekers to job-creators. It contributes to local economies and sustainable development while addressing financial barriers for entrepreneurial ventures in remote areas. The initiative reflects the state's focus on self-reliance and the revival of village industries.
Who can apply
- Eligible business forms
- 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
- Uttarakhand
- Applicant must be aged between 18 and 45 years. - Applicant must be a permanent resident of Uttarakhand. - Applicant must be an educated unemployed youth who is no longer eligible for government service due to the age limit, or must be trained by an Industrial Training Institute (ITI) or a Polytechnic. - Applicant must be a woman interested in self-employment. - Applicant must have passed Vocational Education (10+2 level) with Village Industries as a subject. - Applicant must establish the project in a rural area.
How to apply
- **Access the Official Portal:** Start by going to the official website of the Uttarakhand State Khadi and Village Industries Board at `http://www.ukvib.org`. This site acts as the central source of scheme-related information. - **Locate the Scheme:** On the homepage, use the menu to open the “Schemes” section. From there, choose the link marked "Personal Interest Subsidy Scheme" (http://www.ukvib.org/details.php?pgID=sb_9) to view scheme particulars and application materials. - **Obtain the Forms:** On the scheme page, download the required application documents. These generally comprise the main Application Form (PDF) and a Claim Form (PDF), both needed to begin the process and later to request the interest subsidy. - **Complete and Assemble the Forms:** Fill in every part of the Application Form with precise information on your personal details, the proposed project, and the funds sought. Attach all necessary supporting paperwork, including evidence of residency, age, educational or training qualifications, the project outline, and banking information. - **Deliver to the District Office:** Hand in the finished application form and its accompanying documents to the District Village Industries Office in your area. These offices handle the first-stage review and validation of submissions.
How applications are assessed
Applications are first screened at the District Village Industries Offices. A local committee, drawn from the Uttarakhand State Khadi and Village Industries Board and possibly other district administration officials, examines each submission to check eligibility, judge the project's viability, and verify that raw materials are locally obtainable.
Those who pass this stage are assisted with their bank loan applications. The partner banks then assess the financial soundness of each project. The interest subsidy is granted only after the bank approves the loan and the department subsequently sanctions the interest differential.
Frequently asked questions
What is the maximum project cost covered under this scheme?
The scheme supports bank-financed projects up to a maximum cost of ₹5 lakh, with the subsidy applied to the interest on that loan amount.
What is the interest rate an entrepreneur has to pay?
The entrepreneur pays a fixed 4% interest on the bank-financed project cost, while the government subsidises the remaining interest up to a maximum of 10%.
Who is eligible to apply for this scheme?
The scheme is open to permanent residents of Uttarakhand aged 18 to 45, including educated unemployed youth (particularly those above the government service age limit), ITI or Polytechnic-trained individuals, and women seeking self-employment. Those who have completed Vocational Education (10+2 level) with Village Industries as a subject are also eligible.
Where must the project be established?
The project must be located in a rural area of Uttarakhand to qualify for the scheme, with a focus on supporting local development.
How does the application process work?
The application process is primarily offline: download the Application and Claim Forms from the Uttarakhand State Khadi and Village Industries Board’s official website, complete them with all required supporting documents, and submit them to your local District Village Industries Office for processing.
What type of businesses are supported by this scheme?
The scheme supports entrepreneurs establishing industries that use locally available raw materials and match their working or resource capacity, with a focus on village industries and small-scale manufacturing in rural areas.
Is prior business experience required?
The scheme is aimed at educated unemployed youth and those seeking self-employment, so prior business experience is not a strict requirement. It prioritises potential and the use of local resources.
What documents are typically required for application?
Applicants typically need proof of identity and residency (Uttarakhand domicile certificate), age proof, educational or training certificates, a detailed project proposal, bank account details, and any other documents listed in the application kit.
Sectors
- Agri Food Rural
- Manufacturing Industrial
- Rural Development
- Selfemployment
- Youth Entrepreneurship
- Women Empowerment
- Village Industries
- Uttarakhand
Intended beneficiaries
- Rural Communities
Details last verified on 3 August 2026. Source: the issuer's published information.