Soft Loan Scheme for Women Entrepreneurs
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Quick Answer
Soft loan for women entrepreneurs in Kerala with government/PSU project orders.
- Funding amount
- Up to ₹15 Lakhs
- Funding type
- Debt
- Provider
- Kerala Startup Mission
- Application deadline
- Rolling
- Eligible stage
- Revenue
- Location
- Kerala
About this loan
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.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Create a free account to view.
Grant providers
Kerala Startup Mission (KSUM) Kerala Startup Mission (KSUM) is the nodal agency of the Government of Kerala for promoting entrepreneurship and incubation activities across the state. Established in 2006, KSUM functions as the implementing body for the Kerala Technology Startup…
Learn moreBenefits & Funding
- Amount
- Up to ₹15 Lakhs
- Fund type
- Debt
- Equity
- Equity-free
- Repayment
- Repayable
What You Get
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.
- Disbursement
- Milestone Based
- Duration
- 12 months
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications are submitted through the KSUM portal by women-led startups holding a secured purchase order from a Kerala government department or PSU. Eligibility is assessed against KSUM's startup criteria and the nature of the purchase order. Approved applicants receive up to ₹15 lakh disbursed in milestone-linked tranches tied to project execution progress.
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
What is the Soft Loan Scheme for Women Entrepreneurs?
This scheme provides a soft loan up to Rs. 15 Lakhs as working capital to women entrepreneurs in Kerala for implementing works and projects received from government departments or Public Sector Undertakings in Kerala.
What are the repayment terms of the loan?
The soft loan has a 6% simple interest rate and must be repaid within one year or upon completion of the project with full settlement, whichever is earlier.
What are the key eligibility criteria for this scheme?
Applicants must be women entrepreneurs, and their startup must be a registered LLP or Pvt. Ltd. company in Kerala with an active KSUM Unique ID and DIPP registration. The startup should be working on an innovative product or technology.
How is the loan amount disbursed?
The loan amount is limited to 80% of the Purchase Order value. Disbursement occurs as an advance against milestone payments, with subsequent installments based on satisfactory completion of milestones as certified by the client.
Are there any restrictions on the type of startup that can apply?
Yes, the scheme generally does not provide funds for service startups or SMEs primarily involved in trade and commerce. Startups must be focused on an innovative product or technology.
Sources
Data on this page is compiled from official program and provider references.
