Personal loan in Kochi – Kochi is known as the “Queen of Arabian Sea” due to its natural beauty and geographic location. Its name is derived from the word ‘Koyil,’ which means Fort in Tamil. The city is historically significant and known as the Gateway to Kerala. It is a major tourist destination, with the lure of shopping, including foreign brands, which are not readily available elsewhere in India. The central aspect of Kochi is its diverse population and cosmopolitan culture. Moreover, it has been the home to multiple ethnicities and communities.
The city has been recognized as one of the Fastest-growing cities in India and is also known as Kerala’s financial, commercial, and industrial capital. With a 93% literacy rate, it has the 3rd highest per capita income making it a home to some of the biggest business houses in the country. It is also the base for many multinational companies which have Indian operations. Being a prominent place in Kerala, if you plan to start your own business or expand your existing one, then Kochi is the right place.
Personal Loan In Kochi
To start or expand your business requires a lot of capital investment. And if you are worried about your financial resources, then a personal loan in Kochi is the best option to instantly cover all your business requirements. Moreover, banks and financial institutions offer you personal loans without any collateral, which makes them more accessible and convenient for you to access. You can get a personal loan in Kerala and use it for your business requirements, such as launching your business, expanding your business operations, purchasing new equipment, etc. So what are you waiting for? Apply for a personal loan using one of the largest aggregators, “Buddy Loan,” and get your loan approved at low-interest rates.
Why Is Personal Loan For Business The Right Option In Kochi?
Here are a few situations where you can apply for a personal loan to cover your business needs.
Starting your own business:
You can create a business, but sustaining it in a competitive market is challenging. It needs constant research, innovation, and an eye for upgradation. Hence, availing of a personal loan will help you handle all those expenses and bring your business idea a profitable one.
Expanding your existing business:
You might want to grow your current company when it’s showing consistent profits to acquire more customers. However, it requires a huge capital investment when you want to up-scale your business, expand the operations, launch a new product in the market, etc. Therefore, you can quickly meet this vast capital expenditure by applying for a personal loan.
Procurement of new machinery:
With the constant technological change and heavy competition in the market, you have to upgrade the machinery and the products according to the current market demand. Hence, to overcome competitors and sustain in the market, getting personal loan will help you smoothly handle the cost of new equipment.
Managing inventory is procuring raw materials, getting the materials from suppliers, storing the finished product, warehousing, and transporting the finished goods to the ultimate consumers. So you apply for a personal loan to cover the expenses incurred in managing the inventory.
Human Resource Management:
To run a successful business, the company must have skilled employees. But the cost of recruiting, training, and mentoring talented employees requires a lot of capital. Hence, a personal loan can help you manage such costs efficiently.
Every business needs a strategic marketing plan to promote its product or services and establish its brand. However, it requires planning, budgeting, and implementation, which comes with a cost. To fulfill those expenses, a personal loan will be a benefit.
Benefits Of Getting A Personal Loan In Kochi
|All-Purpose Loan||You can get a personal loan for various monetary needs such as vacation plans, wedding expenses, medical emergencies, business expansion, etc.|
|Flexible Tenure of Repayment||The repayment period ranges from 6 months to 60 months. And you can choose the tenure and repay your loan through EMIs according to your budget.|
|Instant Loan disbursal||With a digital process, your loan amount will get approved and disbursed instantly within a few hours.|
|No collateral||When you are applying for a personal loan, you need not submit any collateral or assets as security as it is an unsecured loan.|
|Minimum documentation||A personal loan only requires minimum documents such as Aadhar Card, PAN card, and bank statements for verification.|
|Paperless process||Personal loans gain popularity as it is accessible online. Hence, you need not visit banks to apply for a loan.|
Eligibility Criteria Of Personal Loan For Business
Before you apply for a personal loan, check if you meet the following eligibility criteria:
|Age||24 to 70 years.|
|Business Tenure||The business must be registered and established with high profits and ROI for a minimum of three years.|
|Business Type||New entrepreneurs, SMEs, MSMEs, Manufacturers, etc|
|Business Turnover||Annual turnover of INR 12 lakhs and more|
|Debts||The business must not have any pending debts in past years|
|Credit Score of the owner||Must have a credit score above 750|
|Sl. No.||Particulars||Documents required|
|1||Proof of Identity||Aadhar Card, PAN Card, Driving License, Passport|
|2||Proof of Address||Aadhar Card, Electricity Bill, Water Bill, Passport|
|3||Proof of Income||Bank statement for the past 3 months
Salary Slips of 3 months
Income Tax Returns for the last 3 years
Balance Sheet and Profit & Loss Statements for the last 3 years audited by a CA.
Don’t Forget This Before Applying For A Personal Loan in Kochi
Credit Score: You must have a credit score above 750 to be eligible for a personal loan. A high score indicates a good repayment history and creditworthiness, and a good rating also helps you get personal loans at lower interest rates. Hence, if you want to make the most out of your score, you can check your credit score using Buddy Score.
Loan amount: You might fall into a debt burden and miss out on repaying your debts on time if you apply for a loan more than you require, consequently affecting your credit score. Therefore, plan and take out the loan amount according to your needs.
EMI: You must repay your loan monthly EMIs before the stipulated time. So, it is better to calculate the EMI you must pay before applying. You can use EMI calculators from various websites and compare the interest rates offered by other lenders. This way, you can choose the lender who offers you the lowest rate making your repayment much more manageable.
Relationship with the lender: If you have already taken a loan from the bank or lending institution, the lender will be ready to offer you loans without documents. And when you have a good relationship with your lender, you can also get your loans at lower interest rates.
Debt-to-Income ratio: Generally, the debt-to-income ratio shows whether you can manage your debts with your current monthly income. So, lenders expect you to have the Debt-to-Income ratio be less than or equal to 50%.
Additional Charges: Check with your lender if you have to pay additional charges such as GST of 18% and processing fees to know the actual expenses on your loan.
In a business and commercial hub like Kochi, there are a lot of opportunities to start or grow your business. However, managing the expenses to sustain your business might be hectic due to heavy competition. In such situations, you can use a personal loan to cover the costs your business incurs smoothly. Moreover, you can apply for a personal loan at low-interest rates using Buddy Loan to protect your business needs. Last but not least, check your credit score using Buddy Score and know your creditworthiness before you apply for a loan.
How can I apply online for a personal loan?
You can apply for a personal loan online using Buddy Loan, the largest loan aggregator. It helps you have a hassle-free process when applying for a personal loan. Moreover, you can quickly get loans at low-interest rates and with minimum documents.
Why is a credit score necessary for a personal loan?
A credit score shows your credit history and repayment history. And having a high score indicates that you can repay the loan on time. Hence, lenders expect you to have a score above 750 to get your loan approved.
Will I get a tax benefit for a personal loan if I use it for my business?
Yes, the interest paid on your loan amount is exempt from taxation as it’s an expense, not revenue. However, the principal amount is not tax-exempt.
When can I use a personal loan for my business?
You can use your loan to launch your new business, expand your existing one, manage inventory, purchase new equipment, etc.
How can I repay the loan amount for a personal loan?
You can repay your loan amount through monthly EMIs and choose the tenure period starting from 6 months to 60 months.