The Priyadarshini Interest-Free Loan Scheme 2026 is a major financial initiative launched by the Government of Kerala to promote women empowerment and self-employment among backward classes. Introduced as part of the state government’s 100-day action plan, the scheme is specifically designed to help women set up or expand micro and small-scale businesses without the burden of interest. The defining feature of this loan is that it is completely interest-free, meaning business owners only need to repay the principal amount. Eligible applicants can secure financial assistance up to ₹5 lakhs depending on the nature and scale of the proposed business.
The scheme is primarily managed by the Kerala State Backward Classes Development Corporation (KSBCDC) and the Kerala State Women’s Development Corporation (KSWDC). The loan is exclusively meant for women entrepreneurs and women-led Self-Help Groups. Priority is given to women belonging to Scheduled Castes, Scheduled Tribes, and Other Backward Classes. Members working under Kudumbashree CDS units or registered NGOs also receive special consideration.
The funds can be utilized for starting or expanding income-generating ventures in manufacturing, services, or trading sectors, such as tailoring units, catering services, grocery shops, or dairy farming. To apply for the loan, candidates must prepare standard identification and business verification documents, which generally include identity proof like Aadhaar Card or Voter ID, Ration Card, Caste and Income Certificates, a basic Project Report outlining the business plan and estimated setup expenses, and MSME or Udyam Registration if required for the specific business category.
Applications must be processed directly through official channels to avoid financial scams. Interested candidates can verify timelines and submit details by contacting their local KSBCDC district office or regional Kudumbashree office. Official updates and portals can be accessed directly on the KSBCDC Website. This scheme represents a significant step toward financial independence for women in Kerala, providing them with the resources and support needed to turn their entrepreneurial dreams into reality.