Call us : +91 9846399200 | Email us : cfs@cochinfin.com

About Business Loans

 

Flourishing India requests effectively accessible business loans. From the assortment of business loans in India today, SME Business Loan frames a significant part for engaging the business network in India towards more prominent development and magnificence.

Businesses need sufficient measure of venture to subsidize for start-up uses or pay for business expansions. For such purposes, organizations take out business loans for their budgetary help. It is an obligation which a company is committed to pay back inside a particular residency as indicated by the terms and states of the allowed loan. New company loans can be taken for an assortment of basic prerequisites like beginning up another firm, business extensions, seller and merchant financing etc.The significant advantage of business loans in India is that it doesn’t require any insurance or security and the vast majority of the banks authorize business loans with negligible pre-installment charges. Another advantage is that in the event that there is a disappointment of reimbursing the loan, at that point the business proprietor won’t exclusively confront the weight of punishments yet the entire company will be exchanged so as to clear the business loan.

As a business proprietor, you’re continually searching for chances to develop your business. Yet, when they do emerge, you need the fundamental assets to really exploit them. What’s more, presently, with Business Loans, you can develop your business or grow without exasperating your own ventures or applying for different loans. Likewise, this Loan could likewise enable you to use chances to expand your business or reserve your next task, with administrations and arrangements modified to your needs.

By profiting these loans, you can engage yourself monetarily which consequently encourages you proceed with your day by day tasks, grow your business resources, buy new plant and hardware, manufacture better framework, fulfill your supply-needs better and with substantially less stress.

 

Business Loan is a great option when it comes to expanding your existing Business or starting something new of your own. There are some salient features of Business Loan which you should know before applying for one, which includes the following
  • Funding upto 80% of property valuation.
  • Fixed Interest Rate
  • Flexible Repayment tenure
  • Loan Amount
  • Minimal Paperwork and Fast Processing

 

Working capital loan

A working capital loan is a loan that is taken to finance a company’s everyday operations. These loans are not used to buy long-term assets or investments and are, instead, used to provide the working capital that covers a company’s short-term operational needs.

Uses of working capital loan

  • Procure raw materials
  • Purchase inventory
  • Pay for overhead costs like electricity, rent, salaries and other utilities
  • Finance blocked payments from debtors
  • Pay suppliers in advance
  • Maintain a healthy level of cash

 

Term loan

A term loan is a monetary loan that is repaid in regular payments over a set period of time. Term loans usually last between one and ten years, but may last for long in some cases. A term loan usually involves an unfixed interest rate that will add additional balance to be repaid.

  • Term loans are Secured Loans. The asset that is purchased using the term loan amount, will serve as a primary security and other assets of the company will be serving as collateral security.
  • The loan has to be repaid within the fixed term regardless of the firm’s financial situation.
  • The interest rate on the loan is charged after evaluating the credit risk of the proposal, the loan amount and tenure for which the loan is taken. The interest rate will be subject to a minimum lending rate. The rate is negotiated between borrowers and lenders at the time of distributing the loan.
  • The lender will ask the borrower not to raise additional loans and to repay the existing loans and maintain a minimum asset base.
  • Term loans can be converted into equity according to the terms and conditions that have been laid out by the lender.
  • Commitment fee is charged on the unutilized loan amount.

 

Required Documents

PROPRIETORSHIP
  • 3 years ITR .computation and Balance sheet
  • One year bank statement (S B a/c, C A a/c, O D a/c )
  • local body licenses/ GST regi, MSME, Pollution, food and safety, export and import license (submit if you have)
  • Loan sanction letter
  • Loan track (starting to till date)
  • Business profile
  • Rental agreement (shop , godown )
  • Other loan details, loan track, loan closing letter
  • Photo , Pan card ,election card , Driving License Ration card (h/w)
  • GST monthly return(april2019 to till months)
  • Two year GST. Annual return
COMPANY/ PARTNERSHIP/TRUST
  • Company memorandum and articles / Partnership deed/ trust deed
  • Registration certificate
  • pan card
  • Three years ITR ,computation and Balance sheet
  • One year bank statement (S B a/c, C A a/c, O D a/c )
  • Local body licenses/ GST regi, MSME, Pollution, food and safety, export and import licence……etc (submit if you have)
  • Business profile
  • GST Annual return (2018 march – 2019 march)
  • GST Monthly return (2019 Aril to till month)
  • Two year ITR, Computation, one year bank statement(Directors/ partners/ trust)
  • Directors: other loan details, loan track, loan closing letter
  • Photo , Pan card ,election card , Driving License (directors/ partners/ trust)
  • Loan sanction letter
  • Term loan statements(starting to till date)

Property details

  • Document of the property
  • Prior documents
  • Encumbrance certificate for last 30 years
  • Possession and non attachment certificate
  • land tax receipt
  • Building tax receipt
  • Location sketch and certificate
  • Approved Building plan and permit

Business Loans for newly started enterprises can also be considered. Contact us to know more on how to avail business loans.

If you have an existing Loan, we helps you to take over the loan from your current to a new bank with less interest rate based on your eligibility and also helps you to Top up the loan with more amount.

 

Features

All loans are not created equal, Loans has become a great option for people to use.

Faster Loan

Cochin Financial Services helps you to get the loan faster than any other consultants! Starting from document prepartion, our main motto is to get you the money!

Choose amount

All charges are communicated up front in writing along with the loan quotation, and let us know how much money you want and we set strategy accordingly.

Enjoy the best rates

Our loan rates and charges are very attractive. We always get you loan for the best interest rates in the market. Its upto us to get you a hassle free loan.

Decide your tenure

As our loan rates and charges are very attractive, we help the clients to workout on tenure which never become a burden for them. We works for you.

 

Loan Eligibility

  • Limited or Private Limited Company
    Net income of the concern should be more than ₹150,000 per annum for business loan up to ₹1,500,000 and over ₹300,000 for business loan above ₹1,500,000.
  • Partnership or Proprietorship Firm
    A minimum of 25% stake each can be clubbed to the income of the concern
  • Chartered Accountant / Self Employed Professional
    Who possess diploma or degree in any of these discipline like art / craft /profession or Who possess the skill that is considered as a profession from banks perspective shall be considered for any financial assistance. For example: Dental Surgeons, Accountants, Medical Practitioners, Engineers, Craftsmen, Management consultants, Construction contractors etc.

 

 

Frequently Ask Questions

If you have a question that deals with clients, customers or the public in general, there is bound to be a need for the FAQ page.

Your bank will assess your repayment capacity while deciding the home loan eligibility. Repayment capacity is based on your monthly disposable / surplus income, (which in turn is based on factors such as total monthly income / surplus less monthly expenses) and other factors like spouse’s income, assets, liabilities, stability of income etc. The main concern of the bank is to make sure that you comfortably repay the loan on time and ensure end use. The higher the monthly disposable income, higher will be the amount you will be eligible for loan. Typically a bank assumes that about 55-60 % of your monthly disposable / surplus income is available for repayment of loan. However, some banks calculate the income available for EMI payments based on an individual’s gross income and not on his disposable income.

The amount of the loan depends on the tenure of the loan and the rate of interest also as these variables determine your monthly outgo / outflow which in turn depends on your disposable income.

.

You repay the loan in Equated Monthly Installments (EMIs) comprising both principal and interest. Repayment by way of EMI starts from the month following the month in which you take full disbursement.

The longer the tenure of the loan, the lesser will be your monthly EMI outflow. Shorter tenures mean greater EMI burden, but your loan is repaid faster. If you have a short-term cash flow mismatch, your bank may increase the tenure of the loan, and your EMI burden comes down. But longer tenures mean payment of larger interest towards the loan and make it more expensive.

Yes, most banks allow you to repay the loan ahead of schedule by making lump sum payments. However, many banks charge early repayment penalties up to 2-3% of the principal amount outstanding. Prepayment penalty may vary according to the reasons and source of funds – if you obtain a loan from another bank for pre-payment the charges are usually higher than when you pay from your own sources. However, you may credit more than your EMI amount into your loan account on a periodic basis and bring down your interest burden as and when funds are available with you. Most banks do not charge a pre-payment penalty if you deposit more than your EMI payable on a periodic basis. Please check such stipulations while availing the loan.

Get a Quote

Now apply for a Loan online, All you need to do is provide your details below application form.



Need Help? Chat with us