Women startups in Kerala can now avail of soft loans to ensure working capital

Soft loans lined up for women startups by the KSUM are to the tune of Rs 15 lakh

The startup scenario in Kerala is growing in leaps and bounds. Over the years, companies which the state government has nurtured and mentored have blossomed into larger enterprises that are renowned in the global arena.

The startup culture hasn’t seen a pause though, with more efforts being channelled towards creating startup companies that deal with various industrial verticals.

Now, in an effort aimed at encouraging startups by women entrepreneurs, the Kerala Startup Mission (KSUM) has rolled out a new soft loan scheme exclusively for women start-ups. The soft loans that are lined up for women-led startup ideas are to the tune of Rs 15 lakh.

KSUM is the nodal agency of the Kerala Government for entrepreneurship development and incubation activities in the state.

Soft loans to ensure working capital

This amount aims at providing working capital to the women-led startups so that they can implement works and projects received from the government departments and public sector undertakings (PSUs) operating in the state.

As per the plan, the beneficiary women-led startup firms will be eligible for a loan amount of up to 80 per cent of the purchase order. The amount will be disbursed as an advance against the milestone payment agreed by the client.

The loan will carry an interest of six per cent and has to be repaid within one year or on completion of project with the full settlement, whichever is earlier, a KSUM source revealed.

Startups having an active certification from the Department for Promotion of Industry and Internal Trade (DPIIT) and KSUM Unique ID can apply for the loan, the source added.

Co-founders of women startups can also apply for the loan provided they have a majority stake in the venture which is registered in Kerala. Loan applications can be made at the Kerala government’s startup mission website.

Women startups can avail other loans too

It may be noted that this is not the only KSUM loan scheme that offers priority to women entrepreneurs. The earlier announced loan schemes include the Seed Revolving Fund Scheme and Seed Fund Scheme.

While the Seed Revolving Fund Scheme is an interest-free scheme solely for Scheduled Caste (SC) women, the Seed Fund Scheme comes with a loan offer at an interest rate of six per cent.

The seed revolving loan comes with an upper limit of Rs 10 lakh and a moratorium of one year. Repayment can be made in 24 EMIs up to Rs 5 lakh and 36 EMIs for above Rs 5 lakh.

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