The Soft Loan Scheme for Women Entrepreneurs is an empowering financial initiative by the Kerala Startup Mission (KSUM) to support women-led startups in Kerala. The scheme provides working capital assistance of up to ₹15 lakhs as a soft loan to women entrepreneurs for executing projects or works received from Government Departments or Public Sector Undertakings (PSUs) in Kerala.
With a low interest rate of 6% per annum, this scheme aims to reduce financial barriers for women entrepreneurs and help them build sustainable and scalable business ventures.
Key Benefits of the Kerala Soft Loan Scheme
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Loan Amount: Up to ₹15,00,000 as a working capital soft loan
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Interest Rate: 6% per annum (simple interest)
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Loan Coverage: Up to 80% of the Purchase Order (PO) value
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Repayment Period: 1 year or completion of project (whichever comes earlier)
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Disbursement Method: In installments linked to client-approved milestones
Note: The second and subsequent installments will only be disbursed upon satisfactory completion of project milestones, certified by the client.
Who Qualifies as a Woman Entrepreneur?
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An individual woman or a group of women who initiate, organize, and run a business enterprise.
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In service-based enterprises, at least 51% of the shares must be held by the woman founder(s).
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In startups with equity investment, the majority of shares must be retained by the woman founder(s).
Eligibility Criteria
To apply for the Kerala Soft Loan Scheme, the startup must;
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Be DPIIT-recognized (Department for Promotion of Industry and Internal Trade)
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Possess a valid KSUM Unique ID
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Be registered in Kerala
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Be women-led with a majority stake held by women co-founder(s)
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Have a Government Department or PSU as a client for the project or work order
Note:
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The startup must sign a formal agreement with Kerala Startup Mission (KSUM).
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A personal guarantee from the woman founder is mandatory.
How to Apply – Online Process
Step-by-Step Guide
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Visit the Kerala Startup Mission Official Website
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On the homepage, go to the ‘Women’ section and select ‘Soft Loan Scheme’
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Click on the ‘Apply’ button
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Fill in the application form with accurate details
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Submit the completed form online
Necessary Documents for Application
Make sure you have the following documents ready for upload;
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Udyog Aadhaar / Udyam Registration Certificate
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KSUM Unique ID
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PAN Card Copy
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Memorandum of Understanding (MoU) or company incorporation documents
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Loan details/proposal stating the amount requested and PO value
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Any other documents as requested by KSUM during the evaluation
Frequently Asked Questions (FAQs)
Q: What is the Soft Loan Scheme for Women Entrepreneurs?
A: It’s a scheme by Kerala Startup Mission offering up to ₹15 lakhs in soft loans to women-led startups to execute government or PSU orders.
Q: What qualifies a woman entrepreneur under this scheme?
A: A woman or group of women who own and manage a majority stake (at least 51%) in the startup.
Q: Is DPIIT registration mandatory?
A: Yes, the startup must be recognized by DPIIT and have a KSUM Unique ID.
Q: Can any startup registered outside Kerala apply?
A: No, the startup must be registered in Kerala.
Q: What is the interest rate and repayment period?
A: 6% per annum simple interest, repayable within 1 year or upon project completion, whichever is earlier.
Q: What kind of projects are eligible?
A: Projects/work orders issued by Kerala Government Departments or PSUs.
Q: How can I apply for the loan?
A: Through the Kerala Startup Mission portal, via the online application process.
Sources & References
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Government Orders:
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Dated 21/11/2019
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Dated 16/04/2021
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