Kerala Loan Scheme for Startups

Kerala Loan Scheme for Startups

Home » Learn » Government Initiatives » Kerala Loan Scheme for Startups

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.


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 –

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.

Post by Sreeram Viswanath

IndiaFilings is India's largest online compliance services platform dedicated to helping people start and grow their business, at an affordable cost. We were started in 2014 with the mission of making it easier for Entrepreneurs to start their business. We have since helped start and operate tens of thousands of businesses by offering a range of business services. Our aim is to help the entrepreneur on the legal and regulatory requirements, and be a partner throughout the business lifecycle, offering support at every stage to ensure the business remains compliant and continually growing.