Kerala State Industrial Development Corporation Ltd. (KSIDC), an industrial and investment promotion agency of the Government of Kerala has been involved in various Startup initiatives like Business Incubation Centres, mentoring sessions for young entrepreneurs, seed funding for innovative start-ups etc. The Innovative finance scheme was launched as part of YES (Young Entrepreneur Summit 2014) initiative. Under the scheme, innovative ventures are given seed fund by way of soft loan upto 90% of the project cost or Rs.25 lakhs whichever is lower. The seed fund assistance will be sanctioned as Soft Loan for a period of three year at the prevailing RBI bank rate as on the date of sanction of financial assistance. The company can either repay the loan or covert it to equity limited to19% on mutual agreed terms with in 3 years from the date of disbursement.
• Provided to Start-Ups with innovative ideas.
• Projects shall be commercially viable and should have potential scalability.
Nature of assistance:
• 90% of project cost or Rs. 25 lakhs , which ever is lower.
• Soft loan for a period of three year, convertible to equity on mutually agreed terms
• To meet the fund requirements in the initial stages of the venture.
• For product development and/ or marketing etc.
• Simple interest at RBI Bank Rate
• Convertible into equity at valuation price based on professional valuation on mutually agreed terms within three years; or
• Repayable with interest in 2 years after 1 year moratorium.
Procedure for Applying Seed Fund Assistance at KSIDC
The eligible companies can also submit online application through KSIDC portal Online Application