List of Best Business Ideas in Kerala

Kerala, God’s own country, is popular for tourism and picturesque sites. At the same time, it has great potential for businesses. Blessed with diverse natural resources, the state provides excellent business opportunities to profit. The state's high literacy ensures a constant supply of trained manpower. Moreover, Kerala is well-connected to other parts of India through road, rail, and air.

If you’re running a business in this beautiful state and are eager to explore new opportunities, here’s a list of the top business ideas in Kerala. If you need financial support, a Business Loan from Hero FinCorp can provide the much-required funding.

List of 10 Best Business Ideas in Kerala

Here are some good business ideas in Kerala to give you a quick start:

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1. Agarbatti Making

Agarbatti making is a low-investment business with minimal raw materials, machinery, and labor. Kerala has a high demand for incense sticks, as people widely use them in temples, homes, shops, and offices.

2. Spice Farming

You may grow various spices locally in Kerala, including clove, pepper, cardamom, ginger, and turmeric. Since spices are required in every kitchen across the globe, it is one of the most successful business ideas in Kerala.

Read Also- Best Small Business Ideas for Rural Areas, Villages, Small Towns in India

3. Tea Production

Kerala has plenty of tea plantations that generate a profitable income. You may also have a decent business by starting a tea production business or selling authentic tea leaves online or offline.

Read Also: 10 Best Easy Business Ideas to Start in India

4. Coconut-Based Products

Coconut is a local staple of Kerala that is produced state-wide. If you are looking for a nearly zero-hassle business in Kerala with minimal investment, explore the business of coconut-based products, including virgin coconut oil, coconut sugar, coconut flour, coconut snacks, and coconut-based skincare and beauty products. Sell them online or offline to build a reputable business.

5. Handicraft Products

Many artisans in Kerala craft fine items from wood, straw, coconut fiber and shells, metal, paper mache, etc. To make a business, buy unique products at decent prices from these artisans and sell them across the globe.

6. Homestay Hospitality

Kerala is a popular tourist destination owing to its lush greenery, backwaters, and cultural heritage. Setting up a homestay can be one of the most lucrative small business ideas in Kerala, and it can be done with minimal investment. Offer authentic local experiences to your guests to become popular among travelers.

7. Online Saree Shop

Most women in Kerala and other Indian states wear sarees regularly. These attires reflect Indian versatility, integrity, and heritage. Kasavu sarees are the state’s iconic sarees of royal origin. You may start an online saree shop and cater to the Indian and international demand.

Read Also- 10 Best and Easy Business Ideas in India

8. Banana Chips Business

Banana is widely grown in Kerala, and banana chips are popular snacks consumed nationwide. By starting a banana chips business, you can cater to a huge online and offline audience.

Read Also: Small Business Ideas With Low Investment

9. Ayurvedic Products

Ayurveda is an ancient form of Indian medicine, and Kerala is a rich hub for such medicines. Moreover, the state has favorable weather conditions in which to grow most medicinal plants. If you have a basic knowledge of Ayurveda, start manufacturing authentic Ayurvedic products and sell them online or offline. 

10. Grocery Store

Kerala has fertile land where plenty of fruits and vegetables grow. The best business in Kerala is setting up a grocery store and selling organic products. You can sell the products online or offline.

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Factors to Consider Before Starting a Business in Kerala

Factors to consider before starting a business in Kerala include the following:

• Nature of business activities

• Profitability of the business idea

• Choice of ownership form from sole proprietorship, joint stock company, or partnership

• Capital required for the business establishment and operations

• Business location according to the access to power, labor, market, and raw materials

• Unit size according to the technical, financial, marketing, and managerial facilities

• Machine and equipment requirements

• Tax implications, including VAT, service tax, excise duty, etc.

• Human resources

• Initial operations and marketing requirements

How Business Loans Help You Expand Your Business in Kerala?

A Business Loan from Hero FinCorp provides the required funds to expand your existing business in Kerala. Here is how it helps:

• Loan amount from Rs 3 Lakh to Rs 40 Lakh

• Online loan procedure

• Competitive interest rates

• Flexible repayment terms of up to 60 months

• No collateral requirement

• Quick loan processing

Read Also: How to Get 10 Lakh Business Loan?

How to Apply for a Business Loan?

Here is a stepwise guide to apply for Business Loan online at Hero FinCorp:

Step 1: Visit the Business Loan page on the Hero FinCorp website.

Step 2: Click ‘Apply Now’ to fill in the required fields and provide the necessary documents.

Step 3: Specify the desired loan amount and tenure.

Step 4: Receive a reference number for future use.

Step 5: A representative will contact you for further details.

Step 6: After verification, you will receive a customized loan offer.

Step 7: Accept the loan offer to get disbursal to your bank account.

Conclusion

The most viable business option is one that aligns with your interests and passion. Once you've successfully run a business in Kerala for five years, Hero FinCorp can support your growth with a Business Loan to help expand operations.

You can access an unsecured loan of up to Rs 40 lakh with competitive interest rates and a flexible repayment tenure of up to 60 months, designed to cater to your business's specific needs.

Frequently Asked Questions

1. Which business is most profitable in Kerala?

Setting up a coconut-based business is one of the most profitable business ideas in Kerala. Coconuts are abundant in the state, resulting in minimal production and shipping costs.

2. What types of loans are available for new businesses in Kerala?

Both secured and unsecured Business Loans are available for new businesses in Kerala. Small businesses with at least five years of experience can easily obtain an unsecured loan. However, businesses active for less than five years can apply for a Personal Loan or a Loan Against Property.

3. How important is location when starting a business in Kerala?

Location is of utmost importance when starting a business in Kerala. Your location should be easily accessible to your suppliers, customers, labor, and all others involved in the industry.

4. Can I get a loan to start a business in Kerala?

You may not get an unsecured Business Loan to start a business in Kerala. You should run the business successfully for at least five years to obtain an unsecured Business Loan from Hero FinCorp. However, you can use a Personal Loan to start a company based on your income and employment.

5. How can I utilize Kerala’s cultural heritage in my business?

To utilize Kerala's cultural heritage, start a business related to sarees, handicrafts, coconuts, spices, banana chips, Ayurveda, etc. Alternatively, set up a homestay hospitality business and treat your guests with the culture of Kerala.