Seed Fund Scheme - Kerala Startup Mission

The Government of Kerala has launched the Seed Fund Scheme to give early-stage startups a financial boost. Managed by the Kerala Startup Mission (KSUM), this program provides a soft loan of up to ₹15 lakh to help innovative technology ventures grow. The goal is to promote new businesses, create jobs, and attract private investment, strengthening Kerala’s startup ecosystem.

The loan comes with a 6% simple interest rate and is disbursed in tranches. Startups get a 12-month moratorium before repayment begins, and the loan is repaid in 36 monthly installments. Prepayment is allowed without penalty. The funds can be used for product development, customer development, marketing, scaling, testing, consultancy, IPR protection, and manpower costs. Founder salaries, capital asset purchases, and patenting expenses are not covered.

Beyond money, the program connects startups with KSUM representatives and expert committees, offering potential mentorship and strategic guidance. The scheme focuses on product and technology startups, aiming to build a high-tech entrepreneurial landscape in Kerala.

• Up to ₹15 lakh soft loan at 6% interest.
• 12-month moratorium; repay in 36 monthly installments – no prepayment penalty.
• Funds can be used for product development, marketing, testing, consultancy, IPR, and manpower.
• Must be a DPIIT-recognised Kerala startup (LLP or Pvt Ltd) with an active KSUM ID.
• Preference for product/technology startups at prototype or MVP stage.
• Loan disbursed in tranches based on progress reports.

To apply, your startup must:

• Be registered in Kerala as an LLP or Private Limited Company.
• Have an active KSUM Unique ID.
• Hold DPIIT (formerly DIPP) registration and an 'Active' or 'Active Compliant' status with the Ministry of Corporate Affairs (MCA).
• Be working on an innovative product or technology (service startups and trade/commerce SMEs are generally excluded).
• Be at the prototype or MVP stage (the product should be beyond the ideation phase with a testable version).
• Have no pending dues with any government agency, KSUM, or other incubators in Kerala.
• Not be blacklisted by any government agency in India.
• Have directors with a CIBIL score preferably above 750 (since this is a loan).

Seed Fund Scheme - Kerala Startup Mission is open to startups at the product and revenue stage. The programme is targeted at startups registered in Kerala. Applicants should be registered as llp and private limited. Applicants must hold DPIIT (Startup India) recognition.

Seed Fund Scheme - Kerala Startup Mission accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.

Eligible startups receive:

• Up to ₹15 lakh as a soft loan at 6% simple interest per annum.
• A 12-month moratorium before repayment starts.
• Repayment in 36 monthly installments.
• No prepayment penalty.
• Funds disbursed in tranches: typically half upfront, with the remainder released after submitting an interim progress report and utilisation certificate.
• Use of funds for: product development, customer development, marketing, scaling, testing, consultancy, IPR issues, and manpower costs.
• Potential access to insights, strategic guidance, and mentorship through KSUM representatives and expert committees.

Seed Fund Scheme - Kerala Startup Mission is offered by Kerala Startup Mission, a government body. As a government-backed debt / loan, it is publicly funded and open to eligible startups across India. You can verify current details and timelines on the provider's official website before applying.

1. Online Application: Submit a comprehensive online seed application form with a detailed Business Profile and Seed Proposal via the KSUM website.
2. Initial Evaluation Call: Engage in an evaluation call and pitch with KSUM representatives to assess basic viability.
3. Final Pitch to Seed Expert Committee: Present an in-depth pitch to a committee of industry experts who evaluate innovation, business model, team, and impact.
4. Documentation and Agreement: Selected startups provide legal, financial, and operational documents and sign agreements for tranche-based disbursal.

Before you apply to Seed Fund Scheme - Kerala Startup Mission, keep these documents ready — note the program-specific requirements at the top:

• DPIIT (Startup India) recognition certificate — mandatory for this program
• Certificate of incorporation showing your startup is registered as llp and private limited
• A pitch deck or short business plan describing the problem, product and traction
• Company registration documents and PAN
• Founder identification (PAN / Aadhaar) and brief profiles
• Recent financial statements or projections
• Product details — a demo, prototype or working link if available

Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.

Seed Fund Scheme - Kerala Startup Mission is best suited for product and revenue-stage startups in India seeking non-dilutive funding of ₹15L. Because DPIIT recognition is mandatory, it is aimed at startups already registered under Startup India. If that describes your startup, review the eligibility criteria above before applying.