Soft Loan Scheme for Women Entrepreneurs

The Soft Loan Scheme for Women Entrepreneurs, run by the Kerala Startup Mission (KSUM), provides working capital to women-led startups in Kerala that have secured purchase orders from state government departments or Public Sector Undertakings. KSUM is a state government agency that supports Kerala's startup ecosystem through funding, infrastructure, and mentorship. This scheme helps women entrepreneurs execute projects tied to government contracts by bridging their immediate working capital needs.

Eligible startups can receive a soft loan of up to ₹15 lakh, capped at 80% of the purchase order value. The loan carries a simple interest rate of 6% and must be repaid within one year or upon full project settlement, whichever comes first. Disbursement is milestone-based: an advance payment is made initially, followed by subsequent tranches linked to satisfactory completion of project milestones, certified by the client. The funds are meant for executing works and delivering products or services against the government/PSU order.

The scheme focuses on startups with innovative products or technology. It is generally not intended for service startups or SMEs in trade and commerce. The startup must not have any pending dues with government agencies, KSUM, or other Kerala incubators, and must not be blacklisted by any Indian government agency. The startup director should preferably have a CIBIL score above 750, as the loan is repayable.

• Soft loan up to ₹15 lakh for women-led Kerala startups.
• Loan capped at 80% of a secured government/PSU purchase order.
• Interest rate of 6% simple interest per annum.
• Milestone-based disbursement with client certification.
• Startup must have DPIIT registration and an active KSUM Unique ID.
• Open for LLPs and Private Limited companies in Kerala.

To apply, you must be a woman entrepreneur leading a startup that is registered as a Limited Liability Partnership (LLP) or Private Limited company in Kerala. The startup must hold an active KSUM Unique ID and have DIPP (DPIIT) registration with an 'Active' or 'Active Compliant' status with the Ministry of Corporate Affairs. Your startup should be working on an innovative product or technology—service startups and SMEs in trade and commerce are generally not eligible. Additionally, the startup must not have any outstanding dues with any government agency, KSUM, or other incubators in Kerala, and must not be blacklisted by any Indian government agency. The startup director should preferably have a CIBIL score of more than 750, reflecting good financial discipline.

Soft Loan Scheme for Women Entrepreneurs is open to startups at the revenue stage working in ai saas enterprise and deeptech electronics robotics. 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.

Soft Loan Scheme for Women Entrepreneurs 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.

• Soft loan up to ₹15 lakh, capped at 80% of a secured government/PSU purchase order.
• Milestone-based disbursement: An advance payment followed by tranches upon satisfactory completion of project milestones, certified by the client.
• Low interest rate: 6% simple interest per annum.
• Repayment term: Within one year or upon full project settlement, whichever is earlier.
• Working capital for project execution: Funds can be used to implement works and deliver products/services against the government/PSU contract.

Soft Loan Scheme for Women Entrepreneurs 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.

Applications are submitted through the KSUM portal by women-led startups that hold a secured purchase order from a Kerala government department or PSU. KSUM then assesses eligibility based on its startup criteria and the nature of the purchase order. Approved applicants receive the loan in milestone-linked tranches tied to project execution progress.

Before you apply to Soft Loan Scheme for Women Entrepreneurs, 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.

Soft Loan Scheme for Women Entrepreneurs is best suited for revenue-stage ai saas enterprise and deeptech electronics robotics 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.