For working capital, credit at a concessional interest rate of 4% p.a. under the ISEC scheme which is made available for institution requirement.
The actual rate and the 4% is paid by Central Government through KVIC to the lending banks.
Government of India has approved to join separate parts of the scheme for Khadi and Ployvastra as to make possible with the seamless release of subsidy interest to the institution.
For the implementation during XII plan period for approving continuation of the scheme.