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Sreeram Viswanath

Expert

Published on: Jun 24, 2026

Kerala Loan Scheme For Startups

Innovation by startups fuels a nation’s progress. Startups as provide employment opportunities and generate revenues much needed by a nation. The Kerala Government considering the importance of new enterprises has introduced a loan scheme for startups that focuses on startups created by entrepreneurs belonging to the Other Backward Classes (OBC) community. The Kerala Government through this scheme, intends to promote entrepreneurship and self-employment opportunities in the state and empower the budding youth to create job opportunities at the local level. The scheme was implemented by the Kerala State Backward Classes Development Corporation (KSBCDC), under the authority of the State Government.

Features of the Scheme

The following are the salient features of this scheme:

  • OBC applicants in the rural areas will be entitled to a loan of Rs.5 lakhs at an interest rate of 6%.
  • OBC applicants in the urban areas will be entitled to a loan of Rs.10 lakhs at an interest rate of 7%.
  • The repayment period of the loan will extend up to 84 months, i.e., seven years.
  • Either 20% of the loan scheme or a maximum amount of Rs.2 lakhs would be provided as a subsidy.
  • The loan is to be repaid excluding the subsidy amount.

Eligibility

The applicant should be in conformity with the following specifications to qualify for the scheme:

  • The applicant must be a resident of Kerala.
  • The applicant must belong to the OBC community.
  • Candidates from the rural areas, whose annual income is limited to Rs. 98,000.
  • Candidates from the urban areas, whose annual income is limited to Rs. 1,20,000.
  • The applicant must have pursued professional courses such as BE, B. Tech, MBBS, BDS, BHMS, etc.
  • The applicant should be within the age of 40.

How to Apply?

Let’s examine the process of applying for this scheme:

Step 1:- Visit the Official Website    Visit the official website of the Kerala Backward Classes Development Corporation –/ApplicationSE.aspx Step 2:- Fill in the Details Enter the necessary details in the form and click on the ‘submit’ button. The applicant will be notified of the status or on any further acts of compliance; after which the registration will be completed.
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Frequently Asked Questions

Common questions about Kerala Loan Scheme for OBC Startups.

The Kerala Loan Scheme for Startups is available to applicants who belong to the Other Backward Classes (OBC) community, reside in Kerala, have an annual income within the specified limits (Rs. 98,000 for rural areas and Rs. 1,20,000 for urban areas), and have completed professional courses like BE, B.Tech, MBBS, BDS, or BHMS. Additionally, the applicant should be within the age of 40.
For applicants from rural areas, the scheme offers a loan of Rs. 5 lakhs at an interest rate of 6%. For applicants from urban areas, the loan amount is Rs. 10 lakhs with an interest rate of 7%.
The repayment period for the loan under the Kerala Loan Scheme for Startups is up to 84 months, which is seven years.
Yes, the scheme provides a subsidy component. Either 20% of the loan amount or a maximum of Rs. 2 lakhs will be provided as a subsidy, and the loan is to be repaid excluding the subsidy amount.
The Kerala Loan Scheme for Startups aims to promote entrepreneurship and self-employment opportunities in the state, empowering the budding youth to create job opportunities at the local level. The scheme focuses on startups created by entrepreneurs belonging to the OBC community.
The Kerala Loan Scheme for Startups is implemented by the Kerala State Backward Classes Development Corporation (KSBCDC), under the authority of the State Government.
To apply for the scheme, visit the official website of the Kerala Backward Classes Development Corporation, fill in the necessary details in the form, and click on the 'submit' button. The applicant will be notified of the status or any further acts of compliance, after which the registration will be completed.
The Kerala Loan Scheme for Startups is designed specifically for startups created by entrepreneurs belonging to the OBC community. The loan amount and subsidy are intended to support the establishment and growth of new enterprises.
No, the Kerala Loan Scheme for Startups is exclusively for applicants who belong to the Other Backward Classes (OBC) community and meet the specified eligibility criteria.
The article does not mention a specific deadline for applying for the Kerala Loan Scheme for Startups. However, it is advisable to check the official website or contact the concerned authorities for the latest information on application deadlines or any updates to the scheme.