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.
