Seed Fund Scheme - Kerala Startup Mission
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Quick Answer
Soft loan of up to Rs. 15 lakhs at 6% simple interest for early-stage Kerala startups building innovative products, from the Kerala Startup Mission.
- Funding amount
- Up to ₹15 Lakhs
- Funding type
- Debt
- Provider
- Kerala Startup Mission
- Application deadline
- Rolling
- Location
- Kerala
About this loan
Early-stage Kerala startups building innovative products can get seed funding up to Rs. 15 lakhs under the Seed Support Scheme of the Government of Kerala, managed by the Kerala Startup Mission (KSUM). It is a soft loan against purchase orders at 6% simple interest per annum. Funds are released in tranches: an initial release, then installments after you submit progress reports and utilization certificates. There is a 12-month moratorium, then you repay in 36 monthly installments. Prepayment is allowed without penalty.
The money can go to product development, customer development, marketing and scaling up. It can also cover testing and trials, professional consultancy, intellectual property rights (IPR) issues and manpower costs.
You must be registered in Kerala as an LLP or Private Limited Company, with an active KSUM Unique ID, DIPP registration and an 'Active' or 'Active Compliant' status with MCA. You need to be working on an innovative product or technology and generally be at the prototype/MVP stage. The scheme prioritizes product and technology startups and typically excludes service startups and SMEs in trade and commerce. You must have no pending dues with any Government agencies, KSUM or other incubators in the state, and must not be blacklisted by any Government agency in India. Directors should preferably have a CIBIL Score of more than 750.
During evaluation and funding you deal with KSUM representatives and expert committees, which may give you access to insights, strategic guidance and mentorship.
Eligibility
See if you're eligible
Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Grant providers
Kerala Startup Mission (KSUM) is the Government of Kerala's nodal agency for entrepreneurship development and incubation, and the body that implements the Kerala Technology Startup Policy. It was founded in 2006, having started as T-TBI, a business incubation centre set up by…
Learn moreBenefits & Funding
- Amount
- Up to ₹15 Lakhs
- Fund type
- Debt
- Equity
- Equity-free
- Repayment
- Repayable
What You Get
Seed funding up to Rs. 15 lakhs as a 6% soft loan, with a 12-month moratorium. Funds support product/customer development, marketing, scaling, testing, consultancy, IPR, and manpower. Benefits also include potential access to insights, strategic guidance, and mentorship through KSUM representatives and expert committees.
- Disbursement
- Tranched
Timelines & Process
Applications
Rolling basis
Selection Process
Applicants submit an online form, followed by an initial evaluation call and pitch with KSUM representatives. A final, in-depth pitch is then made to the Seed Expert Committee for rigorous evaluation and shortlisting.
How to apply
Four steps from draft to disbursement — one action each.
- 1
Draft your application
Answer the form inside the grant tracker — AI drafts each response using your past answers, so you're not starting from a blank page.
- 2
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 3
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 4
Submit on the official portal
Use the official application link and verify all details before final submission.
- 5
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
Who is eligible to apply for the Seed Support Scheme?
Startups must be registered in Kerala as an LLP or Private Limited Company, be working on an innovative product or technology, and generally be at the prototype/MVP stage. They also need an active KSUM Unique ID and DIPP registration.
What is the maximum amount of seed funding a startup can receive?
The upper limit of seed support under this scheme is Rs. 15 lakhs. Each application is reviewed by KSUM and then placed before the Seed Support Expert Committee, which decides the amount based on milestones, monitoring norms, and repayment provisions.
How and for what purposes can the seed fund be used?
The seed fund is primarily for product development, testing, market entry, professional consultancy, IPR issues, and operational manpower. It is not intended for founder salaries, capital asset purchases, or patenting expenses.
What are the repayment terms of the Seed Support Scheme?
The seed fund is provided as a soft loan at 6% simple interest per annum. Startups can avail a 12-month moratorium, after which the amount (with interest) is repaid in 36 monthly installments. Prepayment is allowed without any penalty.
How is the seed fund disbursed to selected startups?
The seed loan is disbursed in tranches. Usually, half the sanctioned amount is released first after submitting required documents. The remaining amount is released after submission of an interim progress report and utilisation certificate, and a review by an expert committee.
Sources
Data on this page is compiled from official program and provider references.
