Kerala Startup Mission — Seed Grant is a grant from Kerala Startup Mission for startups registered in Kerala as LLP or Private Limited Company with active KSUM Unique ID and active/active-compliant DIPP registration. It provides Up to ₹15 lakhs (₹1,500,000), for product-based innovation · technology startups. Applications are open; confirm the closing date on the official page.
Key facts
| Amount / benefit | Up to ₹15 lakhs (₹1,500,000) |
|---|---|
| Provider | Kerala Startup Mission |
| Where | Kerala |
| Sector | Product-based innovation · technology startups |
| Deadline | Applications open; confirm the closing date on the official page |
| Loan Amount | Up to ₹15 lakhs |
| Interest Rate | 6% simple interest per annum (interest-free for 12-month moratorium) |
| Repayment Period | 36 monthly instalments after 12-month moratorium |
| Processing Timeline | Approximately 30 days from application to final decision |
What is Kerala Startup Mission?
The Seed Fund Scheme from Kerala Startup Mission provides soft loans to early-stage startups for product development, customer development, marketing, and scaling up. Funding is structured as a loan at 6% simple interest per annum with a 12-month interest-free moratorium period, after which repayment occurs over 36 monthly instalments. Disbursement is milestone-based, with funds released upon meeting specified conditions.
A grant is financial support you don’t repay — awarded against eligibility and, usually, agreed milestones or utilisation of funds. The amount and form of support that actually apply to you depend on the programme’s rules and how your application is assessed — they are not fixed for every applicant.
It is aimed at businesses in product-based innovation · technology startups. Like most government programmes, it has its own eligibility conditions, documentation and application window, and these terms are revised from time to time. Because of that, it is worth confirming the current eligibility, amount and deadline on the official programme page before you invest time in applying.
Who is eligible for Kerala Startup Mission?
Startups registered in Kerala as LLP or Private Limited Company with active KSUM Unique ID and active/active-compliant DIPP registration. Must be developing innovative product or technology (not service-based or trading businesses). Directors should maintain CIBIL score preferably above 750. No pending dues with government, KSUM, or other state incubators.
How much does Kerala Startup Mission give, and in what form?
Up to ₹15 lakhs (₹1,500,000).
Seed funds are provided as soft loans at 6% simple interest per annum. Applicants receive a 12-month moratorium period (no interest or principal due). After the moratorium, amounts (with accrued interest) are repaid in 36 monthly instalments. Disbursement occurs in tranches: approximately 50% released after document submission, remaining 50% released after interim progress report and utilisation certificate are submitted and reviewed by the Seed Expert Committee. Funds can be used for product development, testing, trials, test marketing, mentoring, professional consultancy, IPR, and operational staff.
How to apply for Kerala Startup Mission
- Register on KSUM website and obtain active KSUM Unique ID
- Submit online application via KSUM portal (Business Profile & Seed Proposal sections)
- Participate in one-on-one evaluation call (approximately Day 15)
- Present pitch before Seed Expert Committee (approximately Day 30)
- Submit required documents and undergo final evaluation
- Receive approval and execute loan agreement
- Receive first tranche of disbursement
Documents required for Kerala Startup Mission
- Incorporation documents and Certificate of Incorporation
- DIPP registration (active or active-compliant status)
- PAN certificate of company and directors
- Bank account details and passbook (first page)
- CIBIL score report for directors
- Business plan and project proposal
- Balance sheet and financial statements
- Director identification documents
Frequently asked questions
Is this a grant or a loan?
This is a soft loan structured at 6% simple interest per annum with a 12-month interest-free moratorium period, after which repayment occurs over 36 monthly instalments. It is not a grant but a loan product.
When do I need to start repaying the loan?
Repayment begins after the 12-month moratorium period. After this moratorium, the loan amount plus accrued interest is repaid in 36 monthly instalments (3 years).
What can the loan funds be used for?
Approved uses include product development, testing and trials, test marketing, mentoring, professional consultancy, IPR-related expenses, and manpower costs for day-to-day operations. Founder salaries and costly asset purchases are not permitted.
What CIBIL score is required?
Directors should ideally maintain a CIBIL score above 750, though this is a preference rather than an absolute requirement.
Related programmes
Browse similar grant programmes. See all kerala startup and msme schemes. CapEasy handles this under Fundraising advisory.
Source and verification
Official programme page: startupmission.kerala.gov.in. Verification date pending. Government programmes change — confirm current eligibility, amounts and deadlines on the official programme page before you apply. CapEasy is a private consultancy and is not affiliated with any government authority.