A shop loan can get you the desired loan amount to expand your enterprise further, hire staff, restock, reorder, or renovate the shop. It is ideal for you to get financial support for this purpose and meet your business needs.
To get a loan for a shop, you need to fulfil the eligibility criteria listed below:
You must be a citizen of India
You must be a self-employed individual
Self-employed individuals between 26 - 66 years are qualified
Businesses that are in operation for at least 3 years
Below we have provided a list of common documents required to get a loan to buy a shop.
Complete the application form
Identity proof of the applicant such as Passport, PAN card, Voter's ID card, Driving licence, etc.
Proof of Residence such as Ration card/Telephone Bill/ Lease agreement/ Electricity Bill/ Passport/Trade licence /Sales Tax certificate
Proof of Age: Passport, Photo PAN card, Voter's identity card
Financial Documents such as IT return for the last two years, the latest Bank statements for 6 months, and P & L and balance sheet for the last two years audited by a C.A
Also, make sure you have a good credit score when applying for a shop loan with any bank or financial institution.
It will be far more challenging to get a shop loan if your credit score is low, but it is not impossible. However, the lenders can offer you a loan with less favourable terms, like a higher interest rate or limit on the loan amount. You might also need a co-applicant.
Yes, funds can be used for various purposes, like lease payments, purchasing inventory, equipment, machinery, hiring staff and marketing.
The interest rate can range from 12% - 25% depending on your creditworthiness and is up to the lender’s discretion.