Personal Interest Subsidy Scheme
Uttarakhand State Khadi and Village Industries Board · Central government
Uttarakhand State Khadi and Village Industries Board scheme gives interest subsidy on bank loans up to ₹5 lakh to 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 was introduced in 2016 by the Uttarakhand State Khadi and Village Industries Board, under the Government of Uttarakhand. It is aimed at encouraging entrepreneurship and supporting economic activity in the state's rural areas.
The scheme is meant for people who want to set up small-scale industries based on locally available raw materials and the entrepreneurial capacity of their communities. Under it, bank-financed projects of up to ₹5.00 lakh receive financial assistance, which lowers the initial capital burden and reduces ongoing operational costs.
This support is intended to help rural residents, particularly educated unemployed youth and women, move from being job-seekers to job-creators, contributing to local economies and sustainable development. The scheme reflects Uttarakhand's focus on self-reliance and the revival of village industries, so that financial constraints do not stand in the way of viable entrepreneurial ventures in remote areas.
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
- Age of the applicant must fall within 18 to 45 years. - Applicant must hold permanent resident status in Uttarakhand. - Applicant must be an educated unemployed youth who has crossed the age limit for government service, or must have undergone training at an Industrial Training Institute (ITI) or a Polytechnic. - Applicant must be a woman seeking self-employment. - Applicant must have completed Vocational Education at the 10+2 level with Village Industries as a subject. - The project must be set up in a rural area.
How to apply
- **Go to the official website:** Start at the Uttarakhand State Khadi and Village Industries Board's official site, `http://www.ukvib.org`. This portal is the main source of information about the scheme. - **Find the scheme page:** On the homepage, find the “Schemes” section in the menu and click it. Inside, choose the link for the "Personal Interest Subsidy Scheme" (http://www.ukvib.org/details.php?pgID=sb_9) to reach detailed information and application resources. - **Download the forms:** On the scheme page, download the application documents you need. These usually consist of the main Application Form (PDF) and a Claim Form (PDF), both required — the first to start your application, the second to claim the interest subsidy later. - **Complete and submit the forms:** Fill in every section of the Application Form accurately, covering your personal background, the project you propose, and your financial requirements. Attach all supporting documents needed, including proof of residency, age, education/training, project proposal, and bank details. - **Submit to the District Office:** Hand in the completed application form with all required documents at your District Village Industries Office. These local offices handle the initial processing and verification of applications.
How applications are assessed
Applications filed with the District Village Industries Offices are first screened in detail. A local committee — drawn from Uttarakhand State Khadi and Village Industries Board officials and, where applicable, other district administration representatives — examines each application to check eligibility, judge whether the proposed project is viable, and establish that raw materials are available locally.
Applicants who clear this stage receive assistance in applying to a bank, which then assesses the project's financial feasibility. Selection for the interest subsidy depends on two subsequent approvals: the bank sanctioning the project loan, and the department thereafter granting final sanction of the interest differential.
Frequently asked questions
What is the maximum project cost covered under this scheme?
The scheme supports bank-financed projects costing up to ₹5 lakh, with the subsidy granted against the interest payable on that loan.
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 who have crossed the age limit for government service), individuals trained by an Industrial Training Institute (ITI) or a Polytechnic, women seeking self-employment, and those who have passed Vocational Education at the 10+2 level with Village Industries as a subject.
Where must the project be established?
The scheme requires the proposed project to be set up in a rural part of Uttarakhand, with the aim of supporting local development.
How does the application process work?
Applying for this scheme is largely an offline process: download the Application and Claim Forms from the Uttarakhand State Khadi and Village Industries Board's official website, complete them, attach the required supporting documents, and submit the whole set to your local District Village Industries Office for processing.
What type of businesses are supported by this scheme?
The scheme is intended for entrepreneurs who wish to establish industries built around locally available raw materials and their own working or resource capacity, with a primary focus on village industries and small-scale manufacturing in rural areas.
Is prior business experience required?
The scheme is aimed mainly at educated unemployed youth and those seeking self-employment, so prior business experience is not a strict requirement; the emphasis is on an applicant's potential and use of local resources.
What documents are typically required for application?
Although the scheme does not name them individually, applicants would ordinarily need identity and residency proof (including a Uttarakhand domicile certificate), age proof, educational or training certificates, a detailed project proposal, bank account details, and any further forms the application kit specifies.
Sectors
- Agri Food Rural
- Manufacturing Industrial
- Rural Development
- Selfemployment
- Youth Entrepreneurship
- Women Empowerment
- Village Industries
- Uttarakhand
Intended beneficiaries
- Rural Communities
Details last verified on 16 September 2026. Source: the issuer's published information.