Seed Fund Scheme - Kerala Startup Mission — Frequently Asked Questions
Answers to the questions founders most often ask about Seed Fund Scheme - Kerala Startup Mission — who qualifies, the funding amount, required documents and how the application works.
Frequently asked questions
How much funding is offered?
Startups can receive up to ₹15 lakh as a soft loan.
What is the interest rate and repayment schedule?
The loan carries a 6% simple interest per annum. There is a 12-month moratorium, after which the amount is repaid in 36 monthly installments. Prepayment is allowed without penalty.
Who can apply?
Startups registered in Kerala as an LLP or Private Limited Company, with an active KSUM Unique ID and DPIIT registration. They must be working on an innovative product or technology, generally at the prototype or MVP stage. Service startups and trade/commerce SMEs are typically excluded.
Is DPIIT registration required?
Yes, the startup must have DPIIT (formerly DIPP) registration and an 'Active' or 'Active Compliant' status with MCA.
Does the program take equity?
No, this is a debt-based loan program. No equity is taken from the startup.
What can the funds be used for?
Funds can be used for product development, customer development, marketing, scaling, testing, consultancy, IPR issues, and manpower costs. They cannot be used for founder salaries, capital asset purchases, or patenting expenses.
How is the loan disbursed?
The loan is disbursed in tranches. Usually half is released first after signing the agreement. The remaining amount is released after submission of an interim progress report and utilisation certificate, followed by a review by the expert committee.
What is the application deadline?
The scheme is rolling / always open, meaning you can apply at any time.
How do I apply?
You can apply online through the KSUM website at https://startupmission.kerala.gov.in/schemes/seed-fund by submitting the seed application form with a Business Profile and Seed Proposal.
What documents are needed?
After selection, you will need to provide legal, financial, and operational documents, including a utilisation plan and progress reports. During application, you will need to submit a Business Profile and Seed Proposal.
Who offers Seed Fund Scheme - Kerala Startup Mission?
Seed Fund Scheme - Kerala Startup Mission is offered by Kerala Startup Mission, a government body. It is provided as non-dilutive funding.
← Back to Seed Fund Scheme - Kerala Startup Mission overview