Keralam Priyadarshini Self Employment Loan Scheme

Scheme Introduction: A Brief Overview

The Keralam Priyadarshini Self-Employment Loan Scheme is a new interest-free loan scheme of the Kerala State Backward Classes Development Corporation (KSBCDC) for women entrepreneurs from the state's Other Backward Classes (OBC) communities. Under this scheme, the Corporation provides loans of up to ₹5 lakh with full interest subvention, so eligible women do not have to bear the interest burden on the loan. The scheme carries the name "Priyadarshini" in memory of former Prime Minister Indira Gandhi, and it works under the Backward Classes Welfare Department of the Government of Kerala.

The government launched this scheme to achieve social empowerment through the economic empowerment of women. Its main objective is to help OBC women start new production units or expand their existing ones, so that more women can become self-reliant entrepreneurs in the manufacturing sector. The scheme also aims to strengthen grassroots economic development by supporting small, women-led enterprises across Kerala. 

According to the Department, nearly 80 percent of the ₹272 crore loans that the Corporation has sanctioned to 18,377 people under the present government went to women, and the Priyadarshini scheme builds further on this focus.

The Priyadarshini Self Employment Loan Scheme specifically targets women who already run, or want to set up, a manufacturing unit registered under MSME Udyam. An applicant must belong to the state OBC list, must be below 60 years of age, and her annual family income must not exceed ₹5 lakh. KSBCDC gives preference to widows, divorced women, and unmarried women above the age of 40. The assistance comes as a loan, not a grant, which means the beneficiary must repay the principal amount as per the Corporation's terms. Interested women can visit their nearest KSBCDC district or sub-district office to get complete information about the scheme, learn the application process, and fill out the application form.

In addition to the Kerala Government’s Keralam Priyadarshini Self Employment Loan Scheme, the Central Government is also implementing two major schemes to support entrepreneurs in starting their own ventures. The Pradhan Mantri Mudra Yojana provides collateral-free loans to non-corporate, non-farm small and micro enterprises, while the Prime Minister’s Employment Generation Programme offers financial assistance for setting up new micro-enterprises in both rural and urban areas. Interested applicants can check the complete details of these schemes here.

Latest Update: 

KSBCDC invited applications for the scheme through an official notice on 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 the Priyadarshini Self-Employment Loan for women entrepreneurs in the MSME sector at the second edition of "Samagra 2026" held in Palakkad. The event targeted the disbursement of loans worth ₹100 crore to about 10,000 beneficiaries under various KSBCDC schemes, including the Priyadarshini loan, the Jeevandhara Senior Secure Loan, micro-credit loans and education loans.

Scheme Benefits

The Priyadarshini Self Employment Loan Scheme provides a range of valuable benefits to eligible women entrepreneurs belonging to the Other Backward Classes (OBC) category.

• Loan up to ₹5 lakh: Women can receive a maximum loan of ₹5 lakh for their manufacturing enterprise.
• Interest-free loan: KSBCDC provides full interest subvention, so the beneficiary does not pay interest on the loan.
• Support for new units: Women can use the loan to set up a new production unit.
• Support for expansion: Women who already run a production unit can use the loan to expand it.
• Priority for vulnerable women: Widows, divorced women, and unmarried women above 40 years get preference.
• Market support: KSBCDC organises exhibitions, such as the seven-day exhibition planned at Palakkad, where beneficiaries can display and sell their products.

Note: ₹5 lakh is the maximum limit. The actual loan amount may vary from applicant to applicant. The concerned authority has not yet released the repayment period and instalment details officially.

Eligibility Requirements

An applicant must meet all the following conditions to apply under the Priyadarshini Self-Employment Loan Scheme.

• The applicant must be a woman and a permanent resident of the State 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 an enterprise in the manufacturing sector.
• The enterprise must have MSME Udyam Registration.

Preference Categories

KSBCDC gives preference to the following groups of women.

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

Required Documents

To apply under the Priyadarshini Self Employment Loan Scheme, applicants are required to submit the following documents along with their application:

• Income certificate
• Ration card
• Aadhaar card
• Caste/community certificate
• Project report (if applicable)
• Security documents

Steps to Apply

The application process for KSBCDC loans is offline, and applicants need to submit the prescribed form at the nearest KSBCDC office. You can follow the process given here to apply.

• Visit your nearest KSBCDC district or sub-district office.
• Ask for the prescribed application form for the Priyadarshini Self-Employment Loan Scheme.
• Enter your personal details, family income, community, enterprise details, and the loan amount you need.
• Attach copies of all required documents and Udyam Registration details.
• Submit the completed form with documents at the KSBCDC office.
• The office completes the data entry of your application.
• After successful verification, the Corporation sanctions the loan as per its rules.

Relevant Links

• Keralam Priyadarshini Self Employment Loan Scheme Details
• Kerala State Backward Classes Development Corporation (KSBCDC) Portal
• Government of Kerala Portal

Contact Information

• Kerala State Backward Classes Development Corporation (KSBCDC) Helpline Number:
  • 471-2577539
  • 471-2577540
• Kerala State Backward Classes Development Corporation (KSBCDC) Helpdesk Email: [email protected]