Soft Loan Scheme for Women Entrepreneurs

Soft Loan Scheme for Women Entrepreneurs (महिला उद्यमियों के लिए सॉफ्ट लोन योजना)

The “Soft Loan Scheme for Women Entrepreneurs” is an initiative launched by the Kerala Startup Mission aimed at empowering women-led startups. This scheme provides financial assistance through soft loans of up to ₹15 Lakhs, designed to facilitate working capital for executing projects and works contracted by government departments and public sector undertakings in the state of Kerala.

Overview of the Scheme

The Soft Loan Scheme for Women Entrepreneurs (महिला उद्यमियों के लिए सॉफ्ट लोन योजना) serves as a vital resource for female entrepreneurs. It is specifically intended to support women-led startups with financial backing, allowing them to acquire working capital necessary for the execution of various projects approved by governmental bodies.

Definition of Women Entrepreneurs

Women entrepreneurs are recognized as individuals or groups of women who actively establish and manage business ventures. To qualify as a women-led enterprise, at least 51% of the ownership stakes must be held by women, particularly in service-oriented businesses. For enterprises that have received equity funding, maintaining majority ownership with women founders is mandatory.

Key Benefits of the Scheme

• Low-Interest Rate: Women entrepreneurs can avail a soft loan at a nominal interest rate of 6% per annum calculated on a simple interest basis.
• Loan Amount: The loan amount is capped at 80% of the purchase order value, with disbursements made as an advance contingent on milestone payments agreed upon by the client.
• Flexible Repayment Terms: The repayment period spans one year or until the project is completed, whichever comes first.
• Loan Ceiling: A maximum outstanding loan amount of ₹15 Lakhs is permitted under this scheme.

It is crucial for startups to ensure that the products or services specified in the purchase order are delivered accurately. Subsequent disbursements will depend on satisfactory completion of milestones, as certified by the client.

Eligibility Requirements

• The startup must be approved by the Department for Promotion of Industry and Internal Trade (DPIIT) and possess a Unique ID from the Kerala Startup Mission.
• The women co-founder should hold a majority stake in the startup.
• The startup must be registered within the state of Kerala.
• The client must be a government department or a public sector undertaking.

Note: Before availing the benefits, the startup must enter into an agreement with the Kerala Startup Mission. Additionally, a personal guarantee from the women founder is required for the loan application.

Application Process

Steps to Apply Online

1. Submit Application: The application form needs to be filled out and submitted online via the official website of the Kerala Startup Mission, Government of Kerala.
2. Accessing the Scheme: On the homepage, navigate to the ‘Women’ section and select the “Soft Loan” Scheme link.
3. Complete the Form: Click on the ‘Apply’ button and ensure that the application form is filled out completely.
4. Final Submission: Once all details are entered, click the ‘Submit’ button to finalize the application.

Official Reference

For more detailed information about the scheme, please visit the official source: myScheme.gov.in.