Overview of KVIC
Key Aspect
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Details
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Full-Form of KVIC
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Khadi Village and Industries Commission
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Year of Founding
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1957
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Commission Type
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Statutory Body
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Ministry Oversight
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Ministry of MSMEs
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Incorporation of
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All India Khadi and Village Industries Board
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Official website
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https://www.kvic.gov.in/
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Key objectives of KVIC
Promotion of Khadi:
The Khadi and Village Industries Commission (KVIC) is dedicated to revitalizing Khadi as a symbol of sustainability and eco-conscious living. Beyond being a fabric, Khadi represents a lifestyle rooted in self-reliance and environmental responsibility—values that KVIC actively promotes through its various programs and initiatives.
Development of Village Industries:
In addition to supporting Khadi, KVIC fosters the growth of a wide range of village industries by offering Khadi loans. These include agro-based, small-scale, and traditional craft sectors, which generate economic opportunities and improve livelihoods in rural communities across India.
Employment Generation:
KVIC plays a significant role in creating employment, particularly in rural and semi-urban areas, by promoting Khadi and village industries. Through its support of traditional crafts and enterprises, the commission contributes to India’s socio-economic development and helps sustain jobs for artisans, weavers, and skilled workers.
Preservation of Traditional Skills:
A core objective of KVIC is to protect and rejuvenate India’s rich heritage of traditional skills and craftsmanship. By making these practices economically viable, KVIC not only preserves cultural traditions but also enhances the income of local artisans and craftspeople.
Market Promotion:
To increase the market presence of Khadi and village industry products, KVIC facilitates marketing support and builds strong market linkages both domestically and internationally. This helps rural entrepreneurs expand their reach, gain recognition, and access wider customer bases.
Financial Assistance:
KVIC provides financial aid to individuals, institutions, and organizations involved in Khadi and village industries. This support addresses funding challenges and fosters entrepreneurship, empowering rural communities to start and grow sustainable enterprises.
Functions of KVIC
The Khadi Village and Industries Commission performs the following functions:
Planning, promoting, organizing, and implementing programs for the development of Khadi and Village Industries (KVI).
Coordinating with various agencies engaged in rural development for initiatives related to Khadi and village industries.
Maintaining a reserve of raw materials to facilitate the supply chain.
Establishing common service facilities for processing raw materials.
Assisting in the marketing of KVI products through artisans and other channels.
Establishing connections with multiple marketing agencies for product promotion and sales.
Encouraging and supporting research and development in the KVI sector.
Addressing challenges associated with KVI products through research studies and capacity enhancement.
Providing financial assistance to individuals and institutions involved in Khadi and village industries.
Ensuring compliance with product standards to prevent the production of counterfeit products.
Proposing and implementing projects, programs, and schemes for the development of Khadi and village industries.
Role of Khadi Village Industries Commission in the economy
Here are some of the roles of KVIC in the development of the Indian economy:
Employment generation
KVIC plays an important role in generating employment in India.
In 2021-22, KVIC provided jobs to over 4.5 lakh people both directly and indirectly.
Income generation
KVIC helps generate income in rural areas. The income from village industries improves the livelihood of rural populations.
In 2021-22, KVIC generated revenue exceeding Rs. 3,000 crores.
Exports
KVIC promotes the export of khadi and village industry products.
In 2021-22, KVIC exported products worth over Rs. 200 crores.
Preservation of traditional handicrafts and textiles
KVIC helps preserve India's traditional handicrafts and textiles.
It provides skill development training to young people, creating opportunities for entrepreneurship and self-employment.
In 2021-22, KVIC trained over 1 lakh artisans and weavers.
KVIC also provides financial and marketing support to artisans and weavers.
Sustainable development
KVIC encourages the use of renewable energy sources and promotes eco-friendly practices in khadi and village industries.
In 2021-22, KVIC used over 100 MW of renewable energy for its operations.
Departments of the Khadi and Village Industries Commission
The departments of the Khadi Village Industries Commission (KVIC) include:
Board of directors
The board of directors is the main decision-making authority of KVIC. It consists of 15 members, including the chairman and vice-chairman. The board is responsible for creating policies and strategies for the growth of village industries.
General manager
The general manager serves as the chief executive officer of KVIC, overseeing the implementation of the board's policies and strategies. The general manager is supported by a team of officers and staff.
Zonal offices
Zonal offices are situated in major cities across India and provide financial and marketing support within their specific regions.
State offices
State offices are established in every state of India and are responsible for coordinating the activities of zonal offices and district offices.
District offices
District offices are located in all districts of India, offering direct support to village industries within their local areas.
KVIC Schemes and Programs
KVIC has implemented various schemes and programs to achieve these objectives. Some notable ones include:
Prime Minister's employment generation programme (PMEGP): This flagship program aims to generate employment opportunities by promoting micro-enterprises. It provides financial assistance for setting up new ventures and expanding existing ones.
Honey Mission: Under this initiative, KVIC promotes bee keeping activities, creating avenues for honey production and related products. This not only boosts the income of bee keepers but also contributes to agricultural pollination. Businesses operating in multiple regions may find it helpful to refer to the GST state code for tax filing across state boundaries.
SFURTI (scheme of fund for regeneration of traditional industries): SFURTI is designed to enhance the competitiveness of traditional industries and artisans. It focuses on cluster development to improve infrastructure, technology, and market access.
Rebate on Interest for women entrepreneurs: KVIC provides a rebate on interest rates for women entrepreneurs engaged in khadi and village industries, encouraging their active participation in economic activities. To stay compliant, entrepreneurs can file their taxes through GST return systems, which ensures smooth operation of their enterprises.
KVIC provides a user-friendly digital platform for individuals and entrepreneurs to access information, schemes, and resources offered by the Khadi and Village Industries Commission (KVIC). Through KVIC online, applicants can explore KVIC loan programs, such as the Prime Minister's employment generation programme (PMEGP), facilitating convenient application processes and tracking. These loans allow aspiring entrepreneurs to establish or expand micro-enterprises, fostering employment and economic development. KVIC's online initiatives streamline access to financial assistance, promoting inclusivity and applying technology to support the growth of khadi and village industries across India.
Features of KVIC
Some of the notable features of KVIC are:
It is a statutory body established by the Khadi and Village Industries Commission Act 1956.
KVIC promotes traditional and rural industries such as Khadi, coir, village oil, sericulture, honey production, and handicrafts.
Provides financial assistance for the establishment and development of village industries through schemes like PMEGP, SFURTI and REGP.
KVIC also provides education, training and guidance to rural entrepreneurs, rural artisans and unemployed youth.
It is primarily focused on promoting non-farming and agro-based activities in rural areas.
KVIC creates employment opportunities and contributes to the growth of the Indian economy
Eligibility criteria for KVIC Loan
The KVIC loan is available to:
Individuals aged at least 18 years with an 8th-grade pass certificate.
Self-Help Groups (SHGs)
Registered and Cooperative Societies
Charitable Trusts, and various other entities.
Documents required for KVIC Loan
Several key documents are required for submitting an online application to KVIC:
KYC documents of the applicant/borrower.
Caste or community certificate, if applicable, to establish eligibility under specific reserved categories.
Subsidy claim form, based on the applicant’s eligibility.
Certified copy of the bye-laws for societies or associations applying.
Lease or rent agreement for the premises or shed, which must be valid and not older than three years.
A detailed project report, outlining total project cost with a clear breakdown of capital expenditure and working capital requirements for one production cycle.
If working capital is not required, a certificate confirming the same must be issued by the bank's controlling office.
Interest rate for KVIC loans
The interest rate for PMEGP loans and KVIC support is aligned with the standard rates applicable to MSME enterprises. Currently, most banks charge interest starting at approximately 1.25% per month. However, under the Interest Subsidy Eligibility Certificate (ISEC) scheme, a concessional rate of 4% is offered. The difference between this subsidized rate and the actual bank interest is covered by KVIC under the "Grants" section of its budget.
This interest subsidy is available exclusively to manufacturers of Khadi and Polyvastra.
How to avail loans from banks under the KVIC scheme
Visit the KVIC website at https://www.kviconline.gov.in/pmegpeportal/jsp/pmegponline.jsp
Complete the online application form provided. Input your personal details including name, Aadhaar Number, date of birth, address, bank information, business particulars, etc.
Save the application after filling it out.
Upload necessary documents such as passport-sized photo, Aadhaar card, population certificate, EDP training certificate, and higher education certificate.
Finally, click on the 'Final Submission of Application to Sponsoring Agency' button.
Upon final submission, an application ID will be generated and sent to your registered email address, confirming the successful submission of your loan application. You can print this page for future reference.
Conclusion
The Khadi and Village Industries Commission (KVIC) plays a pivotal role in driving inclusive economic development, particularly in rural India. By promoting traditional industries, generating employment, and offering accessible business loan options through schemes like PMEGP, KVIC empowers artisans and entrepreneurs to build sustainable livelihoods. For anyone seeking to launch or expand a rural enterprise, KVIC serves as a vital platform for financial support, skill development, and long-term growth.
