Regardless of the size, every retail shop may need a business loan at some point or the other. The good news is that it has become easy to avail small business lending loans that help shop owners further their business.How to get a business loan? Read further to find out.
Business Loans For Retail Shop
Why Do Shops Need Loans?
Some may apply for a shop loan to open their first retail shop. Other reasons include expansion plans, adding additional stock, redesigning, or maintenance of the store.
Where to Apply for a Retail Store Business Loan?
Wondering where can shops apply for loans? Applying for business loans for retail shops from a bank or NBFC is a common way to get additional business funds.
● Banks: Almost every bank offers business loans for small businesses. Their requirements and rules are not stringent, which encourages small shop owners to apply for a loan.
● NBFCs: Shop owners can also turn to Non-Banking Financial Companies (NBFCs) if they wish to apply for business credit. They offer loans for private businesses like home improvement shops, kirana shops, clothing stores, to name a few.
Why Apply for a Business Loan?
Some benefits business loans for shops include:
- Quick Approval: Small business loans for retailers are approved quickly, and the processing requires less paperwork.
- Low Interest Rates: Micro Business loans have low-interest rates, which allows the borrowers to pay back with ease.
- Instant Disbursal: Small business loans are disbursed within a few hours of application. Small business loans aim to provide quick financial support to small businesses, making it the perfect option for shop owners looking for retail business loans.
- Flexible Tenure: Business loans for small businesses have flexible tenures to allow shop owners to pay back with ease. You can choose a tenure that is suitable for you.
- Flexible Repayment: The shop owners can repay in monthly, quarterly, or half-yearly installments. They can also convert the installments and pay a higher amount in certain months based on their profits.
All these benefits of business loans for shops make them a very attractive option for shop owners.
Eligibility Criteria for a Kirana Store Loan
Since these loans are accessible to everyone, the eligibility criteria are not tough. Yet, how to get business loans for shops?
1. You should be over 23 years but under 58 years of age.
2. You must be an Indian citizen with valid documentation.
3. The business should be legal.
4. The turnover of the proposed shop should comply with the lender’s requirements.
5. If the loan is being applied for an established shop, then the last few years’ profits should comply with the lender’s requirements.
Documents Required to Apply for Retail Store Business Loan
1. Business documents like ownership certificates
2. PAN card of the business
3. Bank statements of the previous year
4. Applicant’s address proof like Aadhar card
These are the basic requirements. If the lender requests for any other documents, you must furnish them.
How to apply for a business loan?
It’s simple. Pay1 has partnered up with leading lending
organisations that help you get a loan that suits you perfectly. Applying for a business loan is quick and easy and does not take more than a
few minutes. We offer secure applications and transactions.
So, if you are looking for a kirana store loan to expand your business, get in touch with Pay1 to help you secure the right loan for you.
Want to become a Pay1 Retailer? We have exciting services for you on our Pay1 Merchant application.