The Khadi and Village Industries Commission (KVIC) is a statutory body under the Ministry of Micro, Small and Medium Enterprises, Government of India.
It is not a bank.
One of the functions of the KVIC is to provide technical information and financial assistance to the institutions and individuals for development and operation of Khadi and village industries and offer guidance to them in the fields of designs and prototypes etc.
Its head office is located at Mumbai and six zonal offices at Delhi, Bhopal, Bangalore, Kolkata, Mumbai and Guwahati. In addition, the KVIC has offices in all the 29 states of India.
It implements the Prime Minister's Employment Generation Programme (PMEGP) which is a credit-linked subsidy program for creation of employment in both rural and urban area of the country. Under the scheme, the general category eligible candidates are required to invest their own contribution of 10% of the project cost and in the case of special category candidates including SC/ST/OBC /Minorities/ Women, Ex-Servicemen, Physically handicapped, NER, Hill and Border areas etc. the contribution is limited to 5% only. The rate of subsidy is 15% and 25% in urban and rural areas respectively in the case of general category candidates and the same is 25% and 35% in case of special category candidates.
Full details like eligibility criteria, how to apply etc. can be seen on their website - http://www.kviconline.gov.in/
The Bank will sanction 90% of the project cost in case of general category of beneficiary/institution and 95% in case of special category of the beneficiary/institution in the form of a term loan and working capital in the form of cash credit. Normal rate of interest is charged by the banks and the repayment schedule may range between 3 to 7 years after an initial moratorium as prescribed by the concerned bank/financial institution.
Let us encourage each other in sharing knowledge.