| 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% |
The second largest city in Tamil Nadu, Coimbatore is one of the most industrialised cities in Tamil Nadu and is known as the textile capital of South India or the Manchester of the South. Coimbatore existed even before the 2nd or 3rd century AD. Karikalan, the first of the early Cholas.
The awesome dark soil in Coimbatore has done wonders for their agricultural industry. Believe it or not, the cotton plantation was so strong that it basically kickstarted the whole famous textile industry in the city. The economy of Coimbatore is diverse, with contributions from various sectors. Avail business loan in Coimbatore to boost city’s economy.
Economy of Coimbatore
Coimbatore is also famous for foundries, automobile industry, textile machinery, spare parts, motor pumps, wet grinders and various engineering products and services. The development of hydroelectric power at the Pikara Falls in 1930 brought about a cotton boom in Coimbatore.
Coimbatore has numerous small, medium and large textile mills. There are also textile research institutes such as Central Institute of Cotton Research (CICR) – Southern Regional Research Institute, South India Textile Research Association (SITRA) and Sardar Vallabhbhai Patel International School of Textiles and Management. Coimbatore region is famous for the quality of cotton and dyed fabrics. The city is the second largest software producer of the state after Chennai.
The city’s IT and BPO industry has received a major boost with the launch of TIDEL Park and other IT parks planned in and around the city. Ranked first among world outsourcing cities. Coimbatore is one of the largest gold jewellery manufacturing centers in India.
The city is home to many jewelry manufacturing companies and jewelers. Several jewellery retail chains are based in Coimbatore or have their manufacturing bases in Coimbatore. Coimbatore has emerged as one of the most trusted outsourcing destinations in the auto component industry. Auto component manufacturers in Coimbatore include Robert Bosch GmbH, PRICOL, Craftsman Automation and Roots Industries.
Purpose of Business Loan in Coimbatore
- When you sense your business is on the up-and-up, grabbing some land or renting a space to expand your auto parts manufacturing is a chance you really don’t wanna pass on. You can avail business at this point.
- If you’re looking to step up your game in pump manufacturing, think about getting some new gear – either buy, rent, or swap out the old stuff. And hey, you can always snag a business loan for that.
- For big players like Electrical and Electronics Industries to score those hefty loans, having a solid credit record is key. Hence taking Business Loan and repaying it on time is mandatory for the industries.
Types of Business Loans in Coimbatore
There are various types of Business Loans offered in Coimbatore, 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 Coimbatore
To avail a Business Loan in Coimbatore, 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 Coimbatore
The documents required for a Business Loan in Coimbatore 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 Coimbatore:
| 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 Coimbatore
The interest rates on a Business Loan in Coimbatore can vary from lender to lender. However, here is an overview of the interest rates and charges on various types of business loans in Coimbatore:
| 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 Coimbatore
| 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 Coimbatore through OneNDF
The process of applying for a Business Loan in Coimbatore 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 Coimbatore.
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
How long does it take to get approval for a business loan for Auto component manufacturing?
The approval times for business loans in the auto component manufacturing industry can vary, ranging from days to weeks. The duration depends on factors such as the lender and the required documentation. OneNdf, being the perfect loan marketplace, can assist you in obtaining a loan with the shortest possible tenure.
What industries in Coimbatore are eligible for business loans?
Business loans are available in Coimbatore for a wide range of industries, encompassing manufacturing (such as shoes, electrical components, hardware products, cranes, hoists, and lifts), services, and trading.
Are collateral or guarantors required for business loans in gold jewellery making?
The necessity for collateral or a guarantor when obtaining a business loan for gold jewellery manufacturing depends on the loan type and amount.
Is there a specific credit score requirement for Electrical and Electronics Industries to secure business loan in Coimbatore?
While credit score requirements can vary, having a solid credit record is crucial for obtaining hefty loans in industries like Electrical and Electronics. Maintaining a good credit history by repaying business loans on time is mandatory for industries seeking substantial financial support.
Can startups in Coimbatore with less than 2 years of business vintage apply for business loans through OneNDF?
While traditional lenders typically favor businesses with a minimum operational history of 2 years, startups in Coimbatore with less than 2 years of business vintage can explore alternative funding options. By connecting with OneNDF, startups can gain valuable insights into tailored financing solutions that align with their specific business circumstances.
