Soft Loan Scheme for Women Entrepreneurs

• Women-led Kerala tech startups at revenue stage with DPIIT recognition.

About this scheme

The Soft Loan Scheme for Women Entrepreneurs, implemented by the Kerala Startup Mission (KSUM), offers financial assistance specifically to women-led startups. KSUM, a state government entity, is dedicated to fostering an innovative startup ecosystem within Kerala by providing various support mechanisms, including funding and infrastructure for emerging businesses. This scheme aligns with KSUM's broader mandate to empower specific founder groups and facilitate project execution, ensuring that promising startups can deliver on government contracts.

Under this scheme, eligible startups can avail a soft loan up to Rs. 15 Lakhs. The loan amount is capped at 80% of the value of a secured purchase order from government departments or Public Sector Undertakings in Kerala. This cap ensures the loan directly supports project execution, covering essential working capital needs. Funds are disbursed on a milestone-based system, with an advance payment and subsequent releases tied to the satisfactory completion of project milestones. The loan carries a 6% simple interest rate and requires repayment within one year, or upon full project settlement, whichever occurs first.

This working capital is specifically intended for implementing projects and executing works secured through purchase orders. The scheme aims to support startups in delivering products and services against these government or PSU contracts, bridging immediate financial needs related to project execution. It is designed for those with innovative products or technology, rather than catering to service startups or SMEs primarily involved in trade and commerce. Disbursements are contingent on client certification, emphasizing project accountability and successful execution.

Who can apply

• Applicants must be women entrepreneurs.
• The startup must be a registered company in Kerala, specifically an LLP or a Private Limited company.
• An active KSUM Unique ID is mandatory.
• The startup company must possess DIPP registration with an 'Active' or 'Active Compliant' status with MCA, a key requirement for government-backed startup support.
• The startup must be working on an innovative product or technology, with the scheme generally not for service startups or SMEs in trade and commerce.
• The startup shall not have any other pending dues with any Government agencies, KSUM, or other incubators in Kerala, nor be blacklisted by any Government agency in India.
• The startup director should preferably have a CIBIL Score of more than 750, indicating financial discipline for this repayable loan.

Eligible entity types: LLP, Private Limited

Benefits & funding

• Provides a soft loan up to Rs.
• 15 Lakhs, capped at 80% of a secured government/PSU purchase order.
• Funds are milestone-based, with advance payment, providing working capital to execute projects and deliver products/services against government contracts.

How the application process works

The journey below is informational, compiled from the official program guidelines. Applications are submitted directly with Kerala Startup Mission, in your own name.

1. 1

   Applications are submitted through the KSUM portal by women-led startups holding a secured purchase order from a Kerala government department or PSU.

2. 2

   Eligibility is assessed against KSUM's startup criteria and the nature of the purchase order.

3. 3

   Approved applicants receive up to Rs.

4. 4

   15 lakh disbursed in milestone-linked tranches tied to project execution progress.

Documents checklist 6

• Company Registration Proof (LLP or Private Limited)
• DIPP Registration Certificate (Active Status)
• Official Purchase Order (Kerala Government/PSU)
• Financial Projections for the Project
• Director's KYC (Aadhaar, PAN)
• Director's CIBIL Score Report

Need help getting these in order? IncorpX provides assistance for incorporation, DPIIT recognition, MSME and GST registrations along with document preparation.

Frequently asked questions