Set up and scale your shop with the help of a business loan, with features like minimal documentation and flexible tenures.
Opening or expanding a retail business requires a substantial capital investment. You can get the required funds with the help of financing solutions like a business loan. This specialised loan allows you to borrow high amounts that you can use to manage your shop’s inventory, renovate the shop, or open a new branch.
Some common advantages of opting for a loan for shops are as follows:
The interest rate of the loan depends upon your business, the loan amount you are applying for, and your past relationship with the bank. The rate of interest on business loans typically starts at 14% per annum. This rate may vary depending on the lender's policies.
Generally, the tenure for this loan ranges up to 96 months. You can choose between short-term and long-term loans based on your business requirements.
Lenders offer different loan repayment options. Some banks and financial institutions provide a customised repayment plan based on the business's cash flows to avoid financial difficulties while servicing the loan. You can lower or increase your monthly instalments according to your profitability, or choose a bullet payment option to repay the loan amount.
When getting a business loan, you do not have to pledge any collateral to get the loan. For a small business start-up, these loans can help you meet your business requirements and grow your shop.
After the approval of the loan, you will receive the approved loan amount in your bank within a few days.
You can secure a loan for opening a shop from top banks and financial institutions on this marketplace with a competitive interest rate. In the table below, you will find the details of interest rate, maximum tenure, and loan amount. Choose the best option for your financial needs from the ones available:
Available Offerings |
Starting Interest Rate |
Maximum Loan Amount |
Maximum Loan Tenure |
---|---|---|---|
Bajaj Finance Business Loan |
14.00% p.a. |
₹80 Lakhs |
96 months |
IIFL Finance Business Loan |
16.50% p.a. |
₹30 Lakhs |
48 months |
FlexiLoans Business Loan |
18.00% p.a. |
₹50 Lakhs |
42 months |
KreditBee Business Loan |
18.00% p.a. |
₹30 Lakhs |
36 months |
Lendingkart Business Loan |
19.20% p.a. |
₹35 Lakhs |
36 months |
Ambit Finvest Business Loan |
20.00% p.a. |
₹2 Lakhs |
36 months |
Protium Business Loan |
20.50% p.a. |
₹35 Lakhs |
36 months |
Aditya Birla Capital UDYOG PLUS Business Loan |
22.00% p.a. |
₹10 Lakhs |
36 months |
Credit Saison Business Loan |
22.00% p.a. |
₹10 Lakhs |
36 months |
Indifi Business Loan |
22.00% p.a. |
₹30 Lakhs |
36 months |
InCred Business Loan |
24.00% p.a. |
₹3 Lakh |
60 months |
U GRO Capital Business Loan |
24.00% p.a. |
₹50 Lakhs |
72 months |
AYE Finance Business Loan |
29.50% p.a. |
₹2 Lakhs |
30 months |
Disclaimer: The above-mentioned details are subject to change at the lender’s discretion.
To get a loan for a shop, you need to fulfil the eligibility criteria listed below:
You must be a citizen of India
Your age must be between 21 and 60 years
Your business must have a vintage of at least 1 year
A good CIBIL score is essential
You should be self-employed, either as a professional (e.g., doctor, chartered accountant) or a non-professional (e.g., trader, manufacturer)
Your business must be registered as a partnership, limited liability partnership (LLP), or private limited company
The minimum annual turnover of your business, as per ITR, should be at least ₹1.5 Lakhs
Do note that the criteria may vary depending on the lender you wish to get the loan from. Also, ensure you have a good credit score when applying for a loan to open a shop with any bank or financial institution.
Below is a list of common documents you will need to submit to get a loan to open or expand a shop:
Complete the application form
Identity proof: Any one of the following
Passport
PAN card
Voter ID
Driving licence, etc.
Address proof: Any one of the following
Ration card
Telephone bill
Lease agreement
Electricity bill
Passport
Trade licence
Sales tax certificate
Income Proof:
Bank statement for the last 6 months
Income Tax Returns (ITR) along with certified documents, including income computation, Profit and Loss (P&L) statements, and balance sheets for the past two years
Business Proof:
Sole Proprietorship Declaration
Authenticated copy of Partnership Deed
Certified copy of Memorandum and Articles of Association
The documents required usually vary from one lender to another. So, you might have to hand in some additional paperwork.
Be sure to reach out to your chosen lender to get a complete list of the documents you need before applying for this loan. This will help speed up the application process, making it hassle-free.
Follow these simple steps to apply for a business loan online:
Head to the business loan page or click on the ‘Check Offers’ button on this page
Provide your personal and business details accordingly
Some lenders may require you to attach a scanned copy of your ID, address, and income proof at this stage
Check all the details you enter before submitting the application
Following this, a representative of the lender will review your application and reach out to you for further proceedings
Reference of all T&C necessarily refers to the terms of the Partners as regards to pre-approved offers and loan processing time amongst other conditions.
You can get a business loan for the purpose of opening or expanding a shop. These funds can be used for various purposes, such as purchasing a shop, renovating an existing one, or covering daily operational expenses.
It can be challenging to get a business loan to open a shop if your credit score is low, but it is not impossible. However, in this case, the loan offered will come with unfavourable terms. These include a higher interest rate or lower loan amount.
You may need to have a co-applicant with a good credit profile to improve your loan eligibility and borrow the required amount.
Yes, you can use the fund for various purposes like:
Lease payments
Purchasing inventory
Acquiring new equipment or machinery
Hiring staff
The shop loan’s interest rate with lenders available on Bajaj Markets usually ranges from 14% to 29.50% per annum. The rate lenders offer will depend on your creditworthiness, loan eligibility and the lender’s policies.