Shop Loan

If you wish to open a shop or expand it, a hefty financial investment is required. You can get the required funds with the help of a shop loan. This specialised loan allows you to borrow high amounts that can be used to manage your shop’s inventory, renovate the shop, or open a new branch. 

Some common advantages of opting for a shop loan are as follows:

• Competitive Interest Rates: The interest rate on a loan depends upon your business, the loan amount you have applied for, and your past relationship with the bank. The rate of interest on shop loans usually starts from 14% p.a. This rate may differ 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 as per the business cash flows to avoid facing financial difficulties while servicing the loan. Owners can lower or increase monthly instalments as per the profitability or choose a bullet payment option to repay the loan amount.
  

• No Collateral Required: When getting a business loan, you are not required 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: Once your loan is approved, you will receive the approved loan amount in your bank within a few days. Shop loans enable your business to grow unhindered.

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

• Your age must be between 21 and 70 years 

• Your business must have a vintage of at least 1 year

Do note that the criteria may vary depending on the lender you wish to get the loan from. Also, make sure you have a good credit score when applying for a shop loan with any bank or financial institution. 

Below we have provided a list of common documents required to get a loan to buy 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
    

• Proof of age: Any one of the following

  • Passport

  • PAN card

  • Voter ID
    

• Financial Documents:

  • ITR of the last 2 years

  • Latest bank statements of the last 6 months

  • Audited P&L and balance sheet of the previous 2 years

The documents required usually vary from one lender to another. So, you may be asked to hand in some additional paperwork. Be sure to reach out to your chosen lender to get a complete list of the documents needed before applying for this loan. This will help speed up the application process, making it hassle-free.

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.