Shop Loan

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:

• Competitive Interest Rates

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.

• Loan Tenure

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.

• Convenient Repayment Options

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.

• No Collateral Required

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.

• Quick Disbursal

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:

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:

1. Head to the business loan page or click on the ‘Check Offers’ button on this page

2. Provide your personal and business details accordingly

3. Some lenders may require you to attach a scanned copy of your ID, address, and income proof at this stage

4. Check all the details you enter before submitting the application

5. 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.