MSME Loan in Kochi

Kochi is the largest metropolitan city in Kerala and is often referred to by its district’s name, Ernakulum. The city is also known as the commercial, industrial, and financial hub of Kerala, with the highest GDP in the entire state. Several prominent tech-companies are situated here, such as V-Guard and TELK, contributing heavily to its overall economic development.

While the established companies can easily finance their operations, organisations in their nascent stages often face working capital shortfalls due to lengthy cash cycles. These establishments can consider an MSME loan/SME loan in Kochi to finance their operations.

Why An MSME Loan In Kochi?

Any SME/MSME in Kerala wanting to make it big in Kochi has to rely on debt financing alongside equity capital. An MSME loan caters to the financial needs of these organisations. There are several government-backed schemes enterprises can avail, like PMEGP, Coir Vikas Yojana, and CLSS for Technology Upgradation.

However, these schemes might not be that beneficial to companies in dire need of funds because of the prolonged disbursal period. Small-scale industries in Kerala can approach a bank/NBFC to avail funds in that case since disbursal is comparatively faster.

Advantages Of MSME loan/SME Loan In Kochi

Here are the benefits of availing a business loan from financial institutions in Kochi –

  1. Ease Of Access

Typically, such financing options are easily accessible, owing to their quick application and approval. Following a successful submission of a loan application and related documents, borrowers can get approval within 24-72 hours.

  1. Meeting Urgent Needs

Entrepreneurs can meet their urgent financial requirements more promptly with a loan for MSME Kerala offered by banks and NBFCs.

  1. No Restriction On Usage

There are no restrictions on the usage of funds availed via this financing method. Resultantly, entrepreneurs can manage an array of business requirements, such as financing working capital, upgrading equipment, etc.

  1. Repayment Flexibility

Additionally, repayment options associated with this financial product also further increases a debtor’s convenience. Entrepreneurs can make part-payments or foreclose their loan as and when it suits them to minimise their repayment burden.

  1. Retaining Control

Unlike sourcing funds from venture capitalists, which may require one to give up the control of a business, availing this financial product does not entail any such formality. Entrepreneurs can retain control of their business and its day-to-day operations with an MSME/SME loan. However, enterprises may need to share their revenue projections and business plans while applying for credit.

Along with these, MSME loans/SME loans in Kochi from various financial institutions are usually collateral-free. Hence, borrowers are not required to pledge any asset to avail funds for their business. The loan amount and other associated terms will depend on the fulfilment of eligibility criteria.

But, lending institutions have their own set of shortcomings. Companies ought to be thoroughly aware of these issues before applying.

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What Are The Downsides Of Bank Loans For MSMEs In Kochi?

Although the specific features of lending institutions vary, there are a few common disadvantages of an MSME loan/SME loan in Kochi offered by banks and NBFCs.

  1. Stringent Documentation And Eligibility

Financial institutions ask for audited financial documents, projections of business revenues alongside a slew of other documents. Moreover, the applicant must have a CIBIL score of 750 or above, the business vintage should be 2 years or more, and the enterprise must boast an annual turnover of Rs. 25 lakhs or higher. Thus, it becomes difficult for new enterprises to avail funding in Kochi from private financiers.

  1. Lengthy Repayment Tenure

The repayment tenure for MSME/SME loans in Kochi can be up to 180 months or 15 years. Since a business owner has several responsibilities on their shoulders, paying a monthly instalment for years can become an additional burden in that respect.

  1. High Rates Of Interest

SME loan interest rates are considerably high because they are not secured by collateral. Organisations without a significant cash inflow can, thus, find it challenging to service an MSME/SME loan in Kochi.

Hence, it may be wise to switch your search from ‘MSME loan providers near me’ to a gold loan. A gold loan enables entrepreneurs to circumvent these shortcomings while ensuring optimal financial support.

Furthermore, with lenders like Rupeek, the convenience of a borrower also increases. The favourable repayment terms, low-interest rates, coupled with the quick fund disbursal and high loans quantum also helps individuals to fund an array of requirements.

Additionally, our presence in prominent areas of Kochi lets us reach our customers within 30 minutes.

Where To Avail Rupeek’s Services In Kochi?

The areas in Kochi where we are operational are,

  • Perumbavoor
  • Infoparkkochi
  • Kalamassery
  • Kakkanad
  • Aluva
  • Willingdon Island
  • Muvattupuzha
  • Tripunithura
  • Mattancherry
  • Airport Road
  • Palarivattom
  • Kumbalangi

With our doorstep loan service, our representative visits your home or office to complete the entire loan process. Get an MSME loan/SME loan in Kochi against gold from Rupeek with just a few clicks.

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Benefits of Gold Loan over MSME/SME loan.
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Comparision Parameters MSME / SME Loan Gold loan
Interest Rate 2.39% .79%
Monthly Interest Amount
Eligibility & Documentation More Documents Needed Only KYC Needed
Processing Time & Disbursement 2 days to 1 week Within a day
Required Gold Weight -
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Frequently asked questions

  1. How to apply for government schemes for MSMEs?

You can apply for government schemes if you are registered under the Udyog Aadhaar Memorandum.

  1. What are the documents required for MSME registration?

Documents required to complete an MSME registration are the Aadhaar card, rent agreement, property papers, company registration certificate, additional licences, and company PAN card.

  1. Which bank is best for MSMEs in Kochi?

There are several financial institutions that extend loans to MSME/SMEs. The bank that works best for one enterprise may not suit another. Thus, it’s imperative to check factors like eligibility criteria, interest rates, tenure, loan amount, documents required, and repayment options before applying for an MSME loan/SME loan in Kochi.

  1. How much loan can an MSME/SME get?

In general, banks and NBFCs offer MSME loans up to Rs. 50 lakhs in Kochi. Government schemes like MSME loan in 59 minutes extend a sum of up to Rs. 5 crores to eligible enterprises.

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