Summary of the Scheme
Name of Scheme	Keralam Priyadarshini Self Employment Loan Scheme
Benefits	Interest-free loan up to ₹5 lakh
Beneficiary	Eligible OBC women entrepreneurs
Nodal Agency	Kerala State Backward Classes Development Corporation (KSBCDC)
Subscription	Subscribe here to get Update Regarding Scheme
Mode of Apply	Offline

Keralam Priyadarshini Self Employment Loan Scheme 2026: Interest-Free Loan up to ₹5 Lakh for Women

The Kerala Government has introduced the Keralam Priyadarshini Self Employment Loan Scheme to promote entrepreneurship and financial independence among women belonging to Other Backward Classes (OBC) communities. Under this scheme, eligible women entrepreneurs can receive an interest-free loan of up to ₹5 lakh through the Kerala State Backward Classes Development Corporation (KSBCDC).

The scheme provides financial assistance to women who want to establish new manufacturing or production units or expand their existing enterprises. The government provides full interest subvention, meaning eligible beneficiaries do not have to bear the interest burden on the loan.

Women applying under the scheme must be permanent residents of Kerala, belong to the state’s OBC list, be below 60 years of age and have an annual family income of up to ₹5 lakh. The enterprise must be engaged in the manufacturing sector and have MSME Udyam Registration.

Applications are submitted offline through the nearest KSBCDC district or sub-district office. Widows, divorced women and unmarried women above 40 years of age receive preference under the scheme.

Keralam Priyadarshini Self Employment Loan Scheme 2026: Overview

Particulars	Details
Scheme Name	Keralam Priyadarshini Self Employment Loan Scheme
State	Kerala
Launched By	Government of Kerala
Implementing Agency	Kerala State Backward Classes Development Corporation (KSBCDC)
Department	Backward Classes Welfare Department
Beneficiaries	Eligible OBC women entrepreneurs
Maximum Loan Amount	₹5 lakh
Interest Rate	Interest-free for eligible beneficiaries through full interest subvention
Annual Family Income Limit	₹5 lakh
Age Limit	Below 60 years
Business Type	Manufacturing and production units
Registration Requirement	MSME Udyam Registration
Application Mode	Offline
Official Website	https://ksbcdc.com/

What Is the Keralam Priyadarshini Self Employment Loan Scheme?

The Keralam Priyadarshini Self Employment Loan Scheme is a women-focused financial assistance programme implemented by the Kerala State Backward Classes Development Corporation (KSBCDC) under the Backward Classes Welfare Department of the Government of Kerala.

The scheme aims to achieve social empowerment through the economic empowerment of women. It provides interest-free loans of up to ₹5 lakh to eligible women belonging to Kerala’s Other Backward Classes communities.

The financial assistance can be used to establish a new manufacturing or production unit or expand an existing enterprise. The scheme is intended to help women become self-reliant entrepreneurs and strengthen small-scale women-led businesses across Kerala.

The scheme is named Priyadarshini in memory of former Prime Minister Indira Gandhi.

According to the department, nearly 80% of the ₹272 crore in loans sanctioned to 18,377 people by the Corporation under the present government went to women. The Priyadarshini scheme builds on this focus by providing further financial support to women entrepreneurs.

It is important to understand that the assistance is a loan, not a grant. Beneficiaries must repay the principal amount according to the Corporation’s applicable terms.

Latest Update: Priyadarshini Loan Distribution 2026

KSBCDC invited applications for the Priyadarshini Self Employment Loan Scheme through an official notice dated 5 September 2026.

On 3 October 2026, Minister for Scheduled Castes, Scheduled Tribes and Backward Classes Welfare K.A. Thulasi launched the state-level distribution of Priyadarshini Self-Employment Loans for women entrepreneurs in the MSME sector.

The launch took place during the second edition of Samagra 2026, held in Palakkad.

The event targeted the distribution of loans worth ₹100 crore to approximately 10,000 beneficiaries under various KSBCDC schemes, including:

• Priyadarshini Self Employment Loan.
• Jeevandhara Senior Secure Loan.
• Micro-credit loans.
• Education loans.

Objectives of the Scheme

The major objectives of the Keralam Priyadarshini Self Employment Loan Scheme are:

• To promote economic empowerment among OBC women.
• To encourage women to establish their own manufacturing businesses.
• To provide financial assistance for expanding existing production units.
• To create self-employment opportunities for women.
• To support small-scale women-led enterprises across Kerala.
• To encourage entrepreneurship among economically vulnerable women.
• To strengthen grassroots economic development.

Benefits of the Priyadarshini Self Employment Loan Scheme

Eligible women entrepreneurs can receive the following benefits:

1. Interest-Free Loan: Eligible applicants can receive loans with full interest subvention, so they do not have to bear the interest burden.
2. Loan up to ₹5 Lakh: The maximum loan assistance available under the scheme is ₹5 lakh.
3. Support for New Businesses: Women can use the loan to establish new manufacturing or production units.
4. Expansion of Existing Units: Existing women-led manufacturing enterprises can use the financial assistance to expand their operations.
5. Priority for Vulnerable Women: Widows, divorced women and unmarried women above 40 years of age receive preference.
6. Market Support: KSBCDC organises exhibitions where beneficiaries can display and sell their products.

Important: The ₹5 lakh amount is the maximum loan limit, not a guaranteed amount for every applicant. The actual loan depends on the applicant’s proposal and the Corporation’s approval. The repayment period and instalment details have not been specified in the supplied information.

Eligibility Criteria for Keralam Priyadarshini Self Employment Loan Scheme

Applicants must fulfil the following conditions:

• The applicant must be a woman.
• She must be a permanent resident of Kerala.
• She must belong to a community included in Kerala’s Other Backward Classes (OBC) list.
• She must be below 60 years of age.
• Her annual family income must not exceed ₹5 lakh.
• She must be engaged in or planning to establish a manufacturing-sector enterprise.
• The proposed or existing enterprise must have MSME Udyam Registration.
• The applicant must fulfil the Corporation’s applicable loan and verification conditions.

Who Gets Preference Under the Scheme?

KSBCDC gives preference to the following categories of women:

• Widows.
• Divorced women.
• Unmarried women above 40 years of age.

Preference does not mean automatic approval. Applicants must still meet the eligibility requirements and the Corporation’s loan-sanction conditions.

Documents Required

Applicants should prepare the following documents before visiting their nearest KSBCDC office:

1. Income Certificate.
2. Ration Card.
3. Aadhaar Card.
4. Caste or Community Certificate.
5. Project Report, if applicable.
6. Security Documents.
7. MSME Udyam Registration details.

The concerned KSBCDC office may ask for additional documents depending on the applicant’s business proposal and loan requirements.

How to Apply for the Priyadarshini Self Employment Loan Scheme?

The application process is offline. Eligible women must visit their nearest KSBCDC district or sub-district office to obtain and submit the prescribed application form.

Follow these steps:

Step 1: Visit the official website of the Kerala State Backward Classes Development Corporation: https://ksbcdc.com/.

Step 2: Locate your nearest KSBCDC district or sub-district office.

Step 3: Visit the office and ask for the application form for the Priyadarshini Self Employment Loan Scheme.

Step 4: Fill in the application form with your personal details, family income, OBC community details and business information.

Step 5: Provide details of your existing or proposed manufacturing unit and the loan amount required.

Step 6: Attach the required documents, including your income certificate, Aadhaar card, community certificate, ration card and Udyam Registration details.

Step 7: Submit the completed application form along with the supporting documents at the concerned KSBCDC office.

Step 8: The office will complete the application data-entry and verification process.

Step 9: After successful verification, the Corporation will consider the proposal and sanction the loan according to its rules.

Applicants should keep the acknowledgement or application reference details provided by the office for future communication.

Loan Amount and Repayment Details

Under the scheme, eligible women entrepreneurs can receive a maximum loan of ₹5 lakh with full interest subvention.

However, applicants should remember the following:

• The assistance is a repayable loan, not a financial grant.
• The beneficiary must repay the principal amount.
• The actual sanctioned loan may be lower than ₹5 lakh.
• The repayment period and instalment schedule have not been officially specified in the information provided.

Applicants should confirm the repayment conditions, security requirements and loan-sanction terms directly with KSBCDC before accepting the loan.

Important Links

Purpose	Link
Scheme Details – Government of Kerala	https://kerala.gov.in/index.php/whatsnewdetailwise/MTc5NTU2MTY3MC4zMg%3D%3D?
KSBCDC Official Website	https://ksbcdc.com/
Government of Kerala Portal	https://kerala.gov.in/
MSME Udyam Registration	https://udyamregistration.gov.in/

Contact Details

Applicants can contact the Kerala State Backward Classes Development Corporation for information about eligibility, application forms, documents and loan processing.

Kerala State Backward Classes Development Corporation (KSBCDC)

• Helpline Number 1: 0471-2577539
• Helpline Number 2: 0471-2577540
• Helpdesk Email: ksbcdc@ksbcdc.com
• Official Website: https://ksbcdc.com/

Applicants can also visit their nearest KSBCDC district or sub-district office for assistance.

Frequently Asked Questions (FAQs)

1. What is the Priyadarshini Self Employment Loan Scheme in Kerala?

The Priyadarshini Self Employment Loan Scheme is a Kerala Government initiative that provides interest-free loans of up to ₹5 lakh to eligible OBC women entrepreneurs for establishing or expanding manufacturing and production units.

2. Who can apply for the Priyadarshini loan?

Women who are permanent residents of Kerala, belong to the state’s OBC list, are below 60 years of age and have an annual family income of up to ₹5 lakh can apply, subject to the business and Udyam Registration requirements.

3. Is the Priyadarshini loan really interest-free?

Yes. KSBCDC provides full interest subvention under the scheme, so eligible beneficiaries do not have to bear the interest burden. However, they must repay the principal amount according to the Corporation’s terms.

4. What is the maximum loan amount under the scheme?

Eligible women entrepreneurs can receive a loan of up to ₹5 lakh. The actual sanctioned amount depends on the proposal and the Corporation’s approval.

5. Can women in trading or service businesses apply?

The supplied scheme information specifically identifies manufacturing and production units as eligible activities. It does not confirm eligibility for trading or service businesses.

6. Who gets preference under the scheme?

Widows, divorced women and unmarried women above 40 years of age receive preference under the scheme.

7. What is the last date to apply?

The supplied information does not specify a final application deadline. Applicants should contact their nearest KSBCDC office to confirm the current application schedule.

8. When did the loan distribution start?

The state-level distribution of Priyadarshini Self-Employment Loans was launched on 3 October 2026 during the Samagra 2026 event in Palakkad.

9. Is the Priyadarshini loan a grant or a loan?

It is a loan, not a grant. Beneficiaries must repay the principal amount according to the Corporation’s applicable repayment terms.

10. What is the repayment period of the loan?

The repayment period and instalment details have not been specified in the information provided. Applicants should confirm these details with KSBCDC before accepting the loan.

11. Is Udyam Registration compulsory?

Yes. The scheme information specifies that the proposed or existing manufacturing enterprise must have MSME Udyam Registration.

12. Where can I apply for the Priyadarshini Self Employment Loan Scheme?

Applications are submitted offline through the nearest KSBCDC district or sub-district office. Applicants can visit https://ksbcdc.com/ for further information.