| BANKS/NBFCs | INTEREST RATES | LOAN TENURE | PROCESSING FEES |
| Standard Chartered Bank | 15%-18% (p.a) | 1-4 Years | Upto 2% |
| Deutsche Bank | 16%-18% (p.a) | 1-4 Years | Upto 2% |
| HDFC Bank | 15%-18% (p.a) | 1-4 Years | Upto 2% |
| ICICI Bank | 15%-18% (p.a) | 1-4 Years | Upto 2% |
| Kotak Mahindra Bank | 15%-18% (p.a) | 1-4 Years | Upto 2% |
| Axis Bank | 15%-18% (p.a) | 1-4 Years | Upto 2% |
| RBL | 15%-18% (p.a) | 1-4 Years | Upto 2% |
| IDFC First bank | 15%-18% (p.a) | 1-4 Years | Upto 2% |
| Yes Bank | 16%-18% (p.a) | 1-4 Years | Upto 2% |
| Aditya Birla Finance Limited | 16%-19% (p.a) | 1-4 Years | Upto 2% |
| Tata Capital | 16%-19% (p.a) | 1-4 Years | Upto 2% |
| Hero Fincorp Ltd | 16%-19% (p.a) | 1-4 Years | Upto 2% |
| Bajaj Finance ltd | 16%-19% (p.a) | 1-4 Years | Upto 2% |
| NeoGrowth | 16%-19% (p.a) | 1-4 Years | Upto 2% |
| U Gro | 16%-19% (p.a) | 1-4 Years | Upto 2% |
Business Loan in Cochin: Kochi (colonial name Cochin) is a vibrant city located on the southwestern coast of the Indian peninsula in the incredibly beautiful and prosperous state of Kerala, nicknamed “God’s Own Country.” Its strategic importance has been emphasized over the centuries by its nickname “Queen of the Arabian Sea”. Unofficially, Cochin is also called the gateway to Kerala. The economy of Kochi is diverse and dynamic, with contributions from various sectors. Business loans in Cochin are easily available to boost the economy of the city.
Economy of Cochin
For centuries, Cochin was a very important trading post on the west coast of India, opening the way for trade with China, Portugal, the Netherlands, and England. Today, Cochin is a bustling industrial center with industries ranging from shipbuilding to handicrafts, petrochemical refining and spice trading. Fertilizers and Chemicals Travancore Limited (FACT) is India’s first major fertilizer manufacturing plant.
Cochin is also home to many large and small industries including Indian Rare Earths, Hindustan Machine Tools, Premier Tires, Ogale Glass Works, Carborandum Universal, Hindustan Insecticides, Travancore Forest Industries, Travancore Cochin Chemicals, Asoka Textiles, and Indian Aluminum Company. , Cominco Binani Zinc, Periyar Chemicals, Standard Potteries, Kerala Agro Machinery Corporation, Modern Bakeries, Kerala Electricals and Allied Engineering Company (Mamala), Traco Cable Company (Irimpanam), Transformers and Electricals (Angamaly), Travancore Rayons (Perumbavoor) and Periyar. Cable (karukuti).
Purpose of Business Loan in Cochin
- If you think your business has grown enough and is currently expanding, purchasing land for a coffee plantation or leasing property to expand your coffee processing business is an opportunity you don’t want to miss.
- You can purchase/lease/replace new equipment or lease equipment to improve the production or operations of your banana chip manufacturing plant. You can avail business loans for the same purpose.
- Small businesses, such as handcrafted chocolate businesses and coconut-based businesses, often lack working capital for day-to-day operations. They can take out short-term business loans until their assets generate enough income to meet their operating needs.
Types of Business Loan in Cochin
There are various types of Business Loans offered in Cochin, some of which include:
| Business Loan Type | Uses |
| Unsecured Business Loans | An unsecured loan is a term loan used to finance long-term or short-term business needs and can be used for Business Expansion/Business Operations.. |
| Working Capital Loans | They are used to finance short-term business needs and can be used for cash flow management, Business Operations, and to fulfil short-term liabilities. |
| Secured Business Loans | They are usually taken against the security of collateral and used for financing long or short-term business needs. They usually have lower interest rates than an unsecured business loan due to collateral security. |
| Loans against Property | Business Loans against Property are taken against the security of commercial, industrial, or residential property and may have a higher loan amount sanctioned based on the market value of the property and the LTV ratio. |
| Equipment Loans | Equipment Loans are usually taken to upgrade machinery or to buy new equipment. |
| Bill Discounting/Invoice Discounting | Bill Discounting is usually used to finance the working capital needs of a business. |
Business Loan EMI Calculator
Eligibility Criteria for a Business Loan in Cochin
To avail a Business Loan in Kochi, the borrower must fulfil the following eligibility criteria:
| Particulars | Requirement |
| Citizenship | The business owner must hold an Indian citizenship. |
| Age | The borrower must be at least 21 years old, and the maximum age must not be more than 65 years old at the time of loan maturity. |
| Business Vintage | The business must be at least 2 years old. |
| Credit Score | Both the promoter and the business must have a good credit score of more than 650. The credit score of co-applicants is also checked wherever applicable. The credit score has a crucial role to play in determining the creditworthiness of the borrower. It determines the limit of the lender’s credit exposure based on the repayment history of the business. |
Documents required for a Business Loan in Cochin
The documents required for a Business Loan in Cochin may vary based upon the type of business loan. However, the following documents are usually sought by banks and NBFCs for a small business loan in Cochin:
| KYC Documents of the owner and the business: The foundation of your journey. For both you and your business, we require: | 1. Personal Identification: PAN Card, Aadhaar Card, Voter’s ID Card, Driving License, etc. 2. Address Proof: Passport, Utility Bills, Lease Agreement, Trade License, etc. 3. Business Legitimacy: GST Registration, UDYAM Registration, Business PAN Card, Licenses issued by Municipalities, Registration certificates from relevant authorities, etc.. |
| Financials: Your economic blueprint, essential for a tailored loan strategy, includes: | 1. Narratives: ITR filings for the last 2 years, complete with Income Computation. 2. Business Health Check: Audited Balance Sheets and Profit & Loss Statements for the last 3 years, certified by a CA. Bank Statements from the last 2 years, revealing your financial journey. 3. License issued by Municipalities, GST Registration Certificate, Registration certificates by appropriate authorities, etc |
| Proof of Ownership or Collateral Documents (In case of secured loans) | 1. Proof of ownership or collateral documents, including property deeds, sale agreements, possession letters, and asset valuation (if applicable). |
Interest rates and Charges on a Business Loan in Kochi
The interest rates on a Business Loan in Cochin can vary from lender to lender. However, here is an overview of the interest rates and charges on various types of business loans in Kochi:
| Business Loan Type | Interest Rate |
| Unsecured Loans | Starting from 16% p.a. |
| Working Capital Loans | Starting from 9% p.a. |
| Secured Business Loans | Starting from 8.85% p.a. |
| Loans against Property | Starting from 8.85% p.a. |
| Equipment Loans | Starting from 9% p.a. |
| Bill Discounting/Invoice Discounting | As per the financial institution |
Interest rates by various banks and NBFCs for Loan Against Property in Cochin
| Banks / NBFCs | Interest Rates | Tenure | Processing Fees |
| HDFC Bank | Starting 8.80% | Maximum 15 years | 0.50% |
| ICICI Bank | Starting 9% | Maximum 15 years | 0.75% |
| Kotak Mahindra Bank | Starting 9% | Maximum 15 years | 0.75% |
| Axis Bank | Starting 9% | Maximum 15 years | 0.50% |
| IDFC Bank | Starting 9% | Maximum 20 years | 1% |
| Standard Chartered Bank | Starting 9% | Maximum 15 years | 0.50% |
| Deutsche Bank | Starting 9% | Maximum 15 years | 0.75% |
| Bajaj Finance | Starting 9.5% | Maximum 15 years | 1% |
| L&T Finance | Starting 9.5% | Maximum 15 years | 1% |
| India Bulls | Starting 10% | Maximum 15 years | 1% |
| RBL Bank | Starting 9% | Maximum 15 years | 1% |
| Hero Fincorp | Starting 10.50% | Maximum 15 years | 1% |
| HDB Finance | Starting 9.5% | Maximum 15 years | 1% |
| HSBC | Starting 9% | Maximum 15 years | 0.50% |
| Shinhan Bank | Starting 9% | Maximum 15 years | 0.50% |
| AU Small Finance Bank | Starting 9.25% | Maximum 15 years | 1% |
How to apply for a Business Loan in Cochin through OneNDF
The process of applying for a Business Loan in Kochi may differ based on the type of business loan availed.
Many banks at times provide small business loans specifically catering to the requirements of MSMEs, however, given the lack of knowledge about business loans offered and the opaqueness in the online business loan application process, small business owners are often unable to get any immediate business finance and end up running from pillar to post to get a business loan in Cochin.
To apply for a business loan on OneNDF, please follow these streamlined steps:
1. Sign-Up Process:
- Click on the “Sign-up” button to begin your journey with OneNDF or Click here
- Enter your mobile number to receive a One-Time Password (OTP) for verification.
2. Business Authentication:
- After signing up, provide your PAN number. This step is crucial for verifying your business identity.
3. Registration and Profile Completion:
- Complete the registration process to build your profile on the platform. A comprehensive profile increases the success rate from initial login to loan sanction.
4. Credit Score Check:
- We will conduct a soft-pull of your credit score. This process does not generate an inquiry, thus not affecting your credit score.
5. Financial Information:
- You can upload the Downloaded ITR for your business (detailed PDF) or you can authenticate the credentials for the ITR portal and we will fetch this information and give you a snapshot . This helps in assessing your business’s financial stability.
6. GST Returns:
- Authenticate the GST credentials. Loans are provided to MSME clients, including both self-employed professionals and non-professional business owners based on their GST returns. ((This information can serve as a quick snapshot to help you understand your business better. It allows you to identify your top suppliers and buyers and monitor your returns effortlessly with just a click, eliminating the need to rely on your accountant for this data.))
7. Banking:-
- Provide banking details for the last 12 months. This helps in analysing your banking turnover and financial transactions.
Upon completing these steps, we will tailor loan offers from lenders that best fit your requirements. Additionally, a comprehensive profile of your business will be created. This profile not only helps you understand your current business health but also provides recommendations on improving key financial ratios to maintain a healthy bottom line.
FAQs
Can I prepay the business loan for Banana Chips manufacturing? Are there any charges for prepayment?
Most lenders allow early repayment of the loan. However, it is important to review the terms and conditions as upfront fees may apply.
Are collateral or guarantors required, if we take business loans for manufacturing of Spices in Cochin?
Depending on how much cash you’re looking to borrow and the rules of the folks lending it, they might ask for something valuable or a friend to vouch for you when you’re getting a business loan
What is the interest rate if we take business loans on a Homemade chocolate Business in Cochin?
Interest rates can be all over the place, and they might stay put or go with the flow. It’s like a mixtape, with the loan amount, how long you’re borrowing, and how much the lender trusts you all playing their part in the song.
Are there specific financial documents required for obtaining business loans for Coconut-based businesses in Cochin?
Lenders typically ask for standard financial documents, including ITR, bank statements, and business financials. However, requirements may vary, and checking with lenders or OneNDF can provide precise document details.
Can startups in Cochin with less than 2 years of business vintage apply for business loans through OneNDF?
Lenders often prefer businesses with a minimum vintage of 2 years. While start-ups may explore other funding options, connecting with OneNDF can offer insights into available fin
