Loan For Shop Purchase

Shop Loan for Shopkeeper

In a country filled with crores of people, the one thing that is essential to keep the population going is quick and easy access to groceries, garments, electricians, pawn, auto shop, renovation, construction etc. In short, kirana stores, medical, mobile, retail, coffee, pharmacy – the unsung heroes that keep our busy lives going. To say the least, the industry still has plenty of opportunities for new entrants, who can leverage the ever-growing demand and set up business to fill the void. There are 2 ways to do so, either rent out a shop or go for a shop purchase to set-up the business. If you are thinking of opening one up, you will probably be looking to get some sort of funding to set up shop, one great way to get funds to start is getting a business loan for shop. The good thing is that today, business loans can be highly tailored to fit your requirements so that you can do business with utmost convenience of funding repayment. A loan for your venture can be of various amounts to suit your need. You can choose your own tenure, and we will provide an affordable interest rate. You can also take out a business loan if you are already an established business and you are looking to expand or just need some working capital for restocking or reordering. Whatever business you are looking to start, there is a loan for it here.

Investment requirements to open up a shop:

To get started on owning a shop, quite a bit of investment is required. One would need to buy a shop, hire manpower, buy stock and also manage the costs related to registering the business. In terms of actual figures, the initial investment could set one back by shop loan – Rs. 1,00,000 to Rs. 5,00,000.

Loan for Retail Business

Retail business can be a lucrative option to bridge the demand supply gap for a particular need in a locality, it’s a great opportunity to earn handsome returns on investment with little tied up capital compared to wholesale business. Due to the rising economy and plenty of government as well as private sector initiatives to promote businesses, the availability of loans has become relatively easier. Entrepreneurs looking to start a new business have multiple options when it comes to loans which are specifically tailored to cater their business needs. Thanks to great strides in technological development, the loan application process has also streamlined and has become more efficient which has resulted in lesser processing time. 

Loan for Shop setup

Setting up a business can be really capital intensive, buying/renting a shop is just scratching the surface of actually setting up a retail business. Once the place of business i.e. shop is in place, then comes the setup. Depending upon the type of line that you’re starting the business in, setting up the shop as per business requirement can be time and capital consuming. For example, for a retail business selling groceries, an appropriate number of shelves, racks, and billing counter, is required. For businesses in retail fashion space, racks for storage, display units, changing room, billing counter, etc may be required to make the shop fit for business. Setting up the shop or making it fit for business is capital intensive as there’s always room to make it even better in terms of looks and functionality, since retail businesses involve a lot of customer interaction in the shop, it is always a good idea to invest in the setup that can attract more business. The entrepreneur can improve the setup on a perpetual basis, i.e. as the business grows, he/she can reinvest profits into making the setup better, or they can create an amazing setup[ before starting the business to make a bigger impact and attract more customers from the get go. This may require capital infusion at the beginning, business owners can opt for a business loan which is a loan for shop setup, the businessperson can infuse capital to ensure better customer footfall to make the business more profitable from the get go.

Business Loan for Shop Features & Benefits:

Business loans are highly customisable today. The loan amount is varied, and the interest rates are set after reading through case to case. You can choose the tenure that’s best for you. Some more features and benefits of having a business loan are:

1. Fast loan processing: Thanks to tech advancement, and constant hard work by the LendingKart team, Today the entire business loan application process is online. This makes the process faster. Everything from the application to the disbursal is done quickly and efficiently. Your loan from LendingKart can get approved in one day. All thanks to seamless and streamlined processes, the loan processing has gotten lightning fast!

2. Fast disbursal: Not only loan processing, LendingKart team understands the need and constantly strives to make even the loan disbursal time shorter. The time for the loan amount to reach your bank account could be as low as 3 days. You no longer have to wait for days after loan approval to get the money disbursed to your bank account.

3. Low-interest rates: Big data and analytics are becoming more commonplace nowadays. It is being incorporated everywhere and is helping companies understand what interest rates should be. This makes the interest rate different from case to case. The applicant’s financial history and record are deciding factors to decide their interest rate. In other words, if you’ve paid your past loans on time, and your profile is free from any negative remarks, chances are that your loan application may attract a better interest rate. Gone are the days of flat interest rates.

4. Flexible repayment: LendingKart understands that no 2 days in business are the same, newer business people may have a hard time managing finances of the business and making sure that repayment is also on time, hence to make it convenient, the applicant can choose to pay off their loan monthly or bi-monthly. There are advantages to both methods. Bi-weekly would mean you would be repaying off the loan quicker.

5. Flexible tenure: Having constraints may be harmful to the way you want to run your business, flexibility in repayment enables the entrepreneur to enjoy freedom of managing business on their own terms. The tenure for your loan is also customizable. You can choose the tenure best suitable for your repayment goals. You can take a conservative or aggressive estimate on your capacity to repay the loan. We offer tenure up to 36 months.

Eligibility Criteria:

We do not have too many eligibility criteria to avail off a business loan. The eligibility criteria for business loans at Lendingkart are:

  • The applicant must be a citizen of India
  • The age of the applicant should be between 21 years and 55 years.
  • Most business loans require a minimum turnover amount. For example, minimum turnover of Rs. 90,000 or more in the months before your loan application.
  • If your business is already established and you are applying for a loan, you must be in operation for more than 6 months
  • The business must not be in the blacklist or excluded list.
  • The location of the business should also not be in the negative location list.

Documents Required:

The basic documents needed for a business loan are:

  • Applicant’s identity proof like a driver’s license, PAN card etc.
  • Applicant’s address proof like a driver’s license, aadhar card etc.
  • Business PAN Card
  • Bank statement of last 6 months
  • Business documents like a sole proprietorship declaration.

Fees and Charges:

Fees and charges that you would have to pay as an applicant on LendingKart are as follows:

  • Interest rate
  • One time processing fee
  • Pre-closure charges
  • Pre-payment charges
  • Overdue EMI interest

The fees and charges that we charge are:

Interest Rates Starting from 1.25% per month
One time processing fee 2-5%
Tenure Up to 2 years
Pre-closure fee Pre-closure charges are applicable as per the lender’s policy
Loan Amount Rs. 50,000 – Rs. 2 crores
Repayment schedule Monthly or Bi-weekly

How to Apply Online Business Loan for a Shop:

The basic application process for an applicant is as follows:

  • Put in your application: Submit an application for your business loan request. You can put in the request online. Some basic details will be asked from you. Once you key in the relevant and correct information in the application and decide to proceed, the application goes in, you might be contacted by a representative for some more details. You will be told of the tenure, interest rates, repayment details etc.
  • Upload documents: If you are applying for a business loan on a digital platform, you will be asked to upload documents online. The documents will be analysed and checked. And if required, further information/documents may be asked. If all goes well, then the loan gets approved.
  • Disbursal: If your loan is approved, the loan amount is disbursed to your account. You would have to wait for a period of 3 days for the loan amount to reflect in your account. All thanks to LendingKart’s quick disbursement process!

Summary

In a bustling country like India, quick access to essential goods like groceries and clothing is vital, making kirana stores and other small businesses crucial. For aspiring shopkeepers, obtaining funding through business loans is an effective way to start or expand their ventures.The setup costs can be significant, covering rent, stock, and infrastructure. Shop loans from LendingKart is a great option with benefits such as flexible repayment plans and interest rates tailored to individual past records. With lendingKart, online applications streamline the loan process, often resulting in lightning quick approvals and disbursals in just three days. Basic eligibility includes being an Indian citizen aged 21-55, with a minimum turnover. Overall, these loans support the growth of local businesses, bridging the demand-supply gap effectively.


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Loan for Shop FAQs:

1. How can I take loan for a shop?

To acquire a loan for purchasing a shop, explore options like commercial shop loans or retail shop loans. Utilize shop loan EMI calculators to estimate repayment plans. Research lenders offering loans for shop buying and use shop loan calculators to determine costs. Compare terms and interest rates to make an informed decision on obtaining a suitable loan for your shop venture.

2. Who is eligible for a business loan?

Anyone seeking financial support for purchasing a shop, whether it’s for retail or commercial purposes, can explore business loans designed specifically for shop acquisition. These loans cater to those looking to buy a shop and often provide features like shop loan EMI calculators to aid in planning. Eligibility criteria may vary, but generally, individuals aiming to secure a shop loan for buying are potential candidates.

3. What is the minimum loan amount offered as a loan for a shopkeeper?

The minimum loan amount offered for shopkeepers seeking a commercial shop loan varies based on factors like the lender, location, and shop’s value. To get an estimate, you can use a shop loan EMI calculator or shop loan calculator. These tools help assess the loan for shop purchases, making it easier for you to find a suitable loan for your retail shop.

4. Will the applicant have to give any collateral?

No, most lenders do not take any security or collateral.

5. Can the loan be pre-closed?

Yes, the loan can be pre-closed. Lenders usually charge a pre-closure charge, but the pre-closure charge can be put in after an EMI payment is done.

6. What are the tenure options available for a business loan?

Loan tenure options are different from lender to lender. Most lenders offer maximum repayment tenure of 36 months.

7. Will my credit score be checked for a business loan?

Yes, your credit score will affect your loan approval. In case you have a low credit score, you could get approved, but at a higher interest rate.

8. Can I get a loan for working capital needs?

Yes, you can apply for a business loan for working capital purposes.

9. Is there any way to speed up the loan application and the approval process of the loan?

You can help your case by submitting all the correct documents and business details for verification purposes.