Seed Loan is a loan from Kerala Startup Mission for the startup must be registered in Kerala as an LLP or Private Limited Company with an active KSUM Unique ID and DIPP registration,…. It provides Upto 15 Lakhs, for pan-sector early-revenue funding. Applications are open on a rolling basis. Last verified against the official page on 22 September 2026.
Key facts
| Amount / benefit | Upto 15 Lakhs |
|---|---|
| Provider | Kerala Startup Mission |
| Where | Kerala |
| Stage | Early Revenue, Prototype |
| Sector | Pan-sector early-revenue funding |
| Deadline | Rolling / always open |
| Maximum seed support | Up to Rs 15 lakh |
| Interest rate | 6% simple interest per annum |
| Moratorium period | 12 months |
| Repayment tenure | 36 monthly installments after moratorium |
| Prepayment | Allowed without penalty |
| Disbursement | In tranches — typically about half upfront, remainder after an interim progress report, utilisation certificate, and committee review |
| Nodal agency | Kerala Startup Mission (KSUM) |
What is Seed Fund?
The Seed Fund Scheme (Seed Support Scheme) is run by Kerala Startup Mission (KSUM). It gives startups registered in Kerala seed funding as a loan against purchase orders, for startups on an innovative product or technology moving from prototype/MVP toward market traction, to promote new ventures, jobs, and private investment in the state.
The fund covers product development, testing and trials, test marketing, mentoring, professional consultancy, IPR issues, and operational manpower — not founders' salaries, costly assets, or patenting. Support goes up to Rs 15 lakh, set by the Seed Support Expert Committee on milestones, monitoring norms, and repayment provisions. It is a soft loan at 6% simple interest, with a 12-month moratorium and repayment over 36 monthly installments after; prepayment is allowed without penalty.
Delivery runs through an online application (Business Profile plus Seed Proposal), a one-to-one KSUM evaluation call around Day 15, and a final pitch before the Seed Expert Committee around Day 30, after which selected startups sign agreements. Funds are disbursed in tranches — about half upfront, the rest after an interim progress report and utilisation certificate.
Who is eligible for Seed Fund?
The startup must be registered in Kerala as an LLP or Private Limited Company with an active KSUM Unique ID and DIPP registration, working on an innovative product or technology (not a service business or a trade/commerce SME), with no pending dues or blacklisting against government agencies.
You qualify if:
- You qualify if your startup is registered in Kerala as an LLP or Private Limited Company with an active KSUM Unique ID
- You qualify if your startup has DIPP registration and an 'Active'/'Active Compliant' status with the MCA
- You qualify if your startup is working on an innovative product or technology, generally at the prototype/MVP stage
- You qualify if your startup has no pending dues with government agencies, KSUM, or other state incubators, and is not blacklisted by any Indian government agency
- You qualify if the startup director has a good CIBIL score, preferably above 750
You are not eligible if:
- Your startup is a service business, or an SME working in trade and commerce — the seed fund is generally not given for these
- Your MCA status is 'Active Non-compliant' (Form INC 22A not filed); such applications risk rejection and this must be resolved before any disbursement
- Your startup has pending dues with government agencies, KSUM, or other state incubators, or is blacklisted by any Indian government agency
How much does Seed Fund give, and in what form?
Upto 15 Lakhs.
How to apply for Seed Fund
- Submit the online seed fund application through the KSUM website, completing both parts — Business Profile and Seed Proposal — and upload all required documents (incomplete forms are rejected)
- Attend a one-to-one evaluation call with KSUM representatives (around Day 15); submit any additional documents the committee requests along with a Final Pitch PPT covering the fund utilisation plan and project milestones
- Present the final pitch before the Seed Expert Committee (around Day 30); if selected, submit all required documents and sign the necessary agreements with KSUM
- Receive fund disbursement in installments once the expert committee's recommendation is processed, subject to fund availability
Frequently asked questions
Who is eligible to apply for the Kerala Startup Mission Seed Fund?
Startups registered in Kerala as an LLP or Private Limited Company, with an active KSUM Unique ID and DIPP registration, working on an innovative product or technology and generally at the prototype/MVP stage. Service businesses and SMEs in trade and commerce are generally not eligible. The startup must have no pending dues with government agencies, KSUM, or other state incubators, must not be blacklisted, and the director should preferably have a CIBIL score above 750.
What is the maximum seed funding amount under the KSUM Seed Fund Scheme?
The upper limit of seed support is Rs 15 lakh. Every application is first reviewed by KSUM and then placed before the Seed Support Expert Committee, which decides the actual amount based on the startup's milestones, monitoring norms, and repayment provisions — so approved amounts can be lower than the ceiling.
What can the KSUM seed fund be used for?
It can fund product development, testing and trials, test marketing, mentoring, professional consultancy, IPR-related issues, and manpower for day-to-day operations. It explicitly cannot be used to pay founders' salaries, to purchase costly assets, or to cover patenting expenses.
What are the repayment terms of the KSUM Seed Fund Scheme?
The seed fund is a soft loan carrying 6% simple interest per annum. Startups get a 12-month moratorium before repayment begins, after which the principal and interest are repaid over 36 monthly installments. Prepayment is allowed at any time without penalty.
How is the KSUM seed fund disbursed once a startup is selected?
Disbursement happens in tranches rather than as a lump sum. Typically about half the sanctioned amount is released first, after the startup submits the required documents; the remaining amount follows only after the startup submits an interim progress report and a utilisation certificate, and the expert committee reviews them.
Related programmes
Browse similar loan programmes. See all kerala startup and msme schemes. CapEasy handles this under Working-capital loan advisory.
Source and verification
Official programme page: startupmission.kerala.gov.in. Last verified 22 September 2026. 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.