Soft Loan Scheme for Women Entrepreneurs — Frequently Asked Questions
Answers to the questions founders most often ask about Soft Loan Scheme for Women Entrepreneurs — who qualifies, the funding amount, required documents and how the application works.
Frequently asked questions
What is the primary purpose of the Soft Loan Scheme for Women Entrepreneurs?
This scheme, managed by the Kerala Startup Mission, provides a soft loan as working capital to women entrepreneurs in Kerala. Its main goal is to help them implement projects and execute works for which they have secured purchase orders from government departments or Public Sector Undertakings within Kerala.
What is the maximum funding amount available through this scheme?
Eligible startups can receive a soft loan of up to ₹15 Lakhs. This amount is capped at 80% of the total value of the secured purchase order from a government entity or PSU.
What are the repayment terms for the soft loan?
The soft loan comes with a 6% simple interest rate. Recipients are required to repay the full amount within one year or upon the complete settlement of the project, whichever occurs first.
Which types of startups are eligible to apply for this loan?
The scheme is open to women entrepreneurs whose startups are registered in Kerala as either a Limited Liability Partnership (LLP) or a Private Limited company. An active KSUM Unique ID and DPIIT registration with 'Active' or 'Active Compliant' status are also mandatory.
Does the scheme support all types of businesses?
No, the scheme specifically targets startups working on an innovative product or technology. It generally does not extend support to service-oriented startups or Small and Medium-sized Enterprises (SMEs) that are primarily involved in trade and commerce.
Is DPIIT registration a mandatory requirement for this scheme?
Yes, having DPIIT registration with an 'Active' or 'Active Compliant' status with the Ministry of Corporate Affairs (MCA) is a crucial eligibility criterion for this government-backed startup support.
Does the Kerala Startup Mission take equity in the startups receiving this loan?
No, this is a soft loan scheme, which means it is a form of repayable financial assistance. The Kerala Startup Mission does not take any equity or ownership stake in the startups that receive funding through this program.
How are the loan funds disbursed to the startups?
The loan amount is disbursed on a milestone-based system. An initial advance payment is provided, with subsequent installments released upon the satisfactory completion of project milestones, as certified by the client.
Where can I find more information or apply for this scheme?
You can find more information and apply for the Soft Loan Scheme for Women Entrepreneurs on the official Kerala Startup Mission website at https://startupmission.kerala.gov.in/schemes/women-soft-loan.
What is the application deadline for Soft Loan Scheme for Women Entrepreneurs?
Soft Loan Scheme for Women Entrepreneurs runs on a rolling basis with no fixed deadline — applications are accepted on an ongoing basis. Check the official site to confirm the window is currently open.
Who offers Soft Loan Scheme for Women Entrepreneurs?
Soft Loan Scheme for Women Entrepreneurs is offered by Kerala Startup Mission, a government body. It is provided as non-dilutive funding.
How do I apply for Soft Loan Scheme for Women Entrepreneurs?
Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.