Lecithin, a byproduct of refining process of vegetable oils, has multifaceted functionality in foods and other industries. Presently, it is produced at large industrial scale due to absence of an appropriate small-scale processing unit for thiS purpose Present study focused at exploring the possibility of producing lecithin from crude soybean and rapeseed oil using a simple equipment appropriate for laboratory scale. A commercially available small milk boiler was modified for this purpose and tested for its suitability.Results indicated that soy lecithin production of 3.2, to 4.8% could be obtained at water addition levels of 2 to 6% while the yield of rapeseed lecithin was 1.2 to 1.7%. The soy lecithin was found to contain 32–35% oil as compared to 30% oil in rapeseed lecithin. Lecithin removal resulted in considerable reduction in phosphorous content indicating enhanced level of oil purification. Bleaching improved the lecithin colour. While soy lecithin, thus obtained, can be used in foods, the taste and flavour of rapeseed lecithin limits its use as livestock and poultry feeds. The economic analysis revealed the tested unit, if scaled-up can profitably be adopted at the small-scale oil mills prevalent in rural India.