Consider the following statements about the…

Consider the following statements about the Interest Subsidy Eligibility Certificate (ISEC):

1. The ISEC Scheme is a mechanism of funding Khadi programme, undertaken by the Khadi institutions.

2. It was introduced to mobilize funds from banking institutions for filling the gap between the actual fund requirements and availability of funds from the budgetary sources.

Which of the statements given above is/are correct?

International Relations Scheme Ai Budget Act Un Bank

Related Scheme	Interest Subsidy Eligibility Certificate (ISEC)
Description	The Interest Subsidy Eligibility Certificate (ISEC) Scheme is an important mechanism of funding the Khadi programme, undertaken by the Khadi institutions. It was introduced to mobilize funds from banking institutions for filling the gap between the actual fund requirements and availability of funds from the budgetary sources.
Nature of assistance	Under the ISEC Scheme, credit at a concessional rate of interest of 4% per annum for working capital, is made available, as per the requirement of the institutions. The difference between the actual lending rate and 4% is paid by the Central Government through the Khadi and Village Industries Commission (KVIC) to the lending banks.

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