Govt. of Kerala has introduced the soft loan scheme for women entrepreneurs to provide financial assistance for executing the purchase orders received from Government Department or Public Sector Undertaking. Soft Loan against Purchase order will be given on the same terms as the seed loan of Startup mission. i.e; simple interest at the rate of 6% per annum. The amount of loan is limited to 80% of the Purchase order and disbursement is as an advance against the milestone payment agreed by the client. The repayment period of the loan is 1 year or completion of project with full settlement whichever is earlier.
The Startup shall ensure the proper delivery of the product/service specified in the purchase order and the disbursement from the second instalment will be based on satisfactory completion of the milestone as certified by the client.
A startup can apply the scheme along with the copy of the Purchase order received from the Government Department or Public Sector Undertaking.
○ The applications received under the scheme will be processed separately on a fast track model based on the recommendation of the committee with the following members:
■ Manager (Finance), Kerala Startup Mission
■ Assistant General Manager (Finance) / Chief Finance Officer - Kerala
Financial Corporation / Kerala State Industrial Development Corporation / IT parks
■ Secretary & Registrar, Kerala Startup Mission
○ The selected Startup will sign an agreement with the Kerala startup Mission before availing the benefit.
○ A personal guarantee needs to be executed by the Women founder for availing of the loan
1. The women co-founder should have a majority stake in the startup.
2. The startup should be a registered company in Kerala as an LLP or Pvt. Ltd company
and should have an active registration with KSUM at the time of application.
3. The startup company has DIPP registration and an ‘Active’/ ‘Active Compliant’ status with MCA. Applications with ‘Active Non-compliant’ have chances to be rejected and this (Form INC 22A) should be done before fund disbursements are made.
4. The startups shall not have any other pending dues with any of the Government agencies, KSUM, Other incubators in the state and shall not be blacklisted by any Govt. agency in India.
5. The startup director should have a good CIBIL Score, preferably more than 750.
6. The client shall be a Government Department or Public Sector Undertaking.
Impact of Scheme
Seed Loan of Rs.15 Lakhs against the purchase order