Khadi and Village Industries Development Scheme

- The Khadi and Village Industries provide important opportunities of non-farming employment to the rural people.
- In the budget for 1995-96, a proposal was made for beginning a new scheme under which the Khadi and Village Industries Commission (KVIC) was to be provided Rs. 1000 crore on a consortium basis through banking system.
- KVIC grants loans to Khadi and Gramodyog units directly or through state level khadi and village level boards (KVIE).
- Centre and the State Governments provide guarantees on loans given by commercial banks to Khadi and Village Industries Board.