Khadi Gramodyog Vikas Yojana: Khadi Vikas Yojana
Ministry of MSME · Central government · Verified 3 August 2026
The Khadi Vikas Yojana, a KVIC and MSME umbrella scheme, funds Khadi institutions and artisans with financial aid, production and interest subsidies, and infrastructure support.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Grant size
- ₹80,000 – ₹25 lakh
- Funding type
- Subsidy
- Deadline
- Rolling
- Disbursement
- Released against milestones
About this program
The Khadi Vikas Yojana functions as an umbrella initiative within the larger Khadi Gramodyog Vikas Yojana, administered by the Khadi and Village Industries Commission (KVIC) under the Ministry of Micro, Small and Medium Enterprises (MSME), Government of India. Its stated purpose is to strengthen the Khadi sector through coordinated assistance to Khadi institutions and individual artisans, covering financial aid, infrastructure development, interest relief on bank loans, and marketing support.
The scheme includes direct subsidies on Khadi production to make goods more affordable and stimulate manufacturing. An interest subsidy component ensures institutions pay only a minimal rate on bank loans, with KVIC absorbing the remainder. It also supports the construction of worksheds for artisans, improves working conditions, and helps modernise marketing infrastructure, including renovating sales outlets. Weaker Khadi institutions receive targeted strengthening, while quality assurance, exhibition participation, science and technology interventions, and the creation of Centres of Excellence are also promoted.
Who can apply
- Eligible organisation types
- All nonprofit forms
- 12A registration
- Not specified
- 80G registration
- Not specified
- CSR-1 registration
- Not specified
- FCRA registration
- Not specified
- NGO Darpan ID
- Not specified
- Where the NGO may be based
- Not restricted
- Applicant must be a Khadi artisan or a Khadi Institution registered with KVIC or KVIB.
- Applicant must be aged between 18 and 55 years.
- Applicant must hold a valid Aadhaar card or another government-issued ID.
- Only one person per family is eligible under the scheme.
- Applicant must not have previously received benefits from any other government scheme for the same purpose.
- Preference is given to applicants from SC/ST, women, unemployed youth, and BPL categories.
- Beneficiaries may be identified and recommended by KVIC, KVIBs, NGOs, DICs, FPOs, or existing Khadi Institutions.
How to apply
- Go to the KVIC website and open the official portal.
- Select the 'Online Registration of Khadi Institutions' option on the portal to start.
- Fill in the application form with the institution's name, address, registration type, authorised person's details, artisan count, and existing infrastructure. Confirm the information is correct before saving.
- Once the initial form is submitted, a username, password, and Unique ID will be sent to your registered email and mobile number. Save the acknowledgment for later use.
- Log in with these credentials and upload the required documents, including the registration certificate, artisan list, workshed details, and organisational bylaws.
- The KVIC office will review the application and documents. If approved, the Certificate of Registration (CoR) will be issued online for download.
How applications are assessed
The assessment for Khadi Vikas Yojana runs through an online submission and review workflow. Applicants, whether individual artisans or institutions, file their forms and supporting paperwork via the KVIC portal. The KVIC office then examines the submitted data, covering institutional registration, artisan particulars, and compliance with eligibility conditions. Once this scrutiny concludes favourably and approval is granted, the Certificate of Registration (CoR) is released.
The screening may give weight to candidates from SC/ST communities, women, unemployed young people, and those in the BPL category, where any quota or preference arrangement applies.
Frequently asked questions
What is the primary objective of the Khadi Vikas Yojana?
The scheme provides financial assistance, infrastructure development, interest subsidy, and marketing support to Khadi institutions and artisans, aiming to boost their productivity and market presence.
Who is eligible to apply for this scheme?
Khadi artisans or Khadi Institutions registered with KVIC or KVIB can apply, provided applicants are aged 18 to 55, hold a valid ID, and have not received benefits from other government schemes for the same purpose.
What kind of financial assistance is available?
The scheme subsidises Khadi production by up to 35% of prime cost, lowers the effective interest rate to 4% through interest subsidies, and offers financial assistance of up to ₹1.2 lakh for artisan worksheds and up to ₹25 lakh for institutional and marketing infrastructure.
How can Khadi Institutions apply for the scheme?
Applications are submitted through the KVIC online portal, where institutions must register, provide the required details, and upload documents. Once the submitted information is verified, a Certificate of Registration (CoR) is issued.
Is there any age restriction for individual artisans?
Individual Khadi artisans must be aged between 18 and 55 years to qualify for benefits under the scheme.
Focus areas
- Agri Food Rural
- Manufacturing Industrial
- Khadi
- Artisans
- Msme
- Rural Development
- Handloom
- Subsidy
- Infrastructure
Details last verified on 3 August 2026. Source: the funder's published information.
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