The Scheme is applicable to all viable village industry projects set up in rural areas.

The eligible agencies under the scheme are (i) individuals(rural artisans/entrepreneurs) for projects upto Rs.10 lakhs and (ii) Institutions, Co-operative Societies, Trusts registered with KVIC/KVIB for projects upto Rs.25 lakhs.

25 percent of the project cost upto Rs.10.00 lakhs and upto Rs.25.00 lakhs rate of Margin money will be 25 percent of Rs.10.00 lakhs plus 10 percent of the remaining cost of the project.

In case of weaker section beneficiary viz. SC/ST/OBC/Women/Physically Handicapped/Ex-servicemen and Minority Community beneficiary/Institutin and for Hill, Border and Tribal areas, North Eastern Region, Sikkim, Andaman and Nicobar Islands, Lakshadweep, Margin Money grant will be at the rate of 30 percent of the project cost upto Rs.10.00 lakhs and above this amount upto Rs.25 lakhs it will be 10% of the remaining cost of the project.

Under the Scheme, the borrower is required to invest his own contribution of 10 per cent of the project cost. In case of SC/ST and other weaker section borrowers, the contribution will be 5 per cent of the project cost.

Banks will sanction 90 per cent of the project cost in case of general category borrowers and 95 per cent of the project cost in case of Wearker Section beneficiary/Institutions and disburse full amount of the loan.

KVIC will place a lumpsum deposit of Margin Money in advance with the Coporate office of each bank or a Nodal Branch designated by the Banks in Savings Bank Account in the name of KVIC. After Sanction of the credit facility by the Bank branches, eligible amount of Margin Money will be kept in Term Deposit of 2 years in the name of the borrower at the Bank Branch which sanctions the loan to the borrowers which will be first available for adjustment by banks to the borrowers loan account after a period of two years from the date of disbursement of loan. Banks would furnish quarterly progress report of adjustment of Margin Money directly to KVIC.