5 Outrageous Ideas for Getting a Business Loan for Local Kiranas
May 12, 2021
What Exactly is a Kirana Shop?
In India, a Kirana Market, also known as a nearby departmental store, is a small neighbourhood store. All household items are sold in these shops. The size of every shop is determined by the amount of money available to a local Kirana. However, whenever it comes to expanding their sector, they will need additional financial leverage, mostly in the form of a loan.
Now let’s talk about 5 Outrageous ideas to get business loan for kirana store:
1. Government Business loans Schemes: MSME Loan in 59 Minutes
The Government of India launched this programme, also known as PSB Loan in 59 Minutes, in which it unveiled a fast business loan platform for those who need to extend their current business. MSMEs will get loans from public and private sector banks and NBFCs for sums ranging from INR 1 lakh to INR 5 crores in less than 59 minutes at 8.50% under this scheme (Non-Banking financial companies). MSME Loans in 59 Minutes provides the financial services you need in a timely and efficient manner.
2. Cash Flow Management
An investor must ensure that loans are repaid on time. The cash flow numbers represent your company’s liquidity situation. Examine the debt service coverage ratio in detail (DSCR). It emphasises the amount of cash you have on hand to pay off your debts. Here are several things you can do to boost your cash flow and raise your odds of getting a small business loan:
- Enforce payment management
- Eliminate needless spending
- Pay invoices in the company’s name
- Cut costs whenever required
3. EMI Calculator
When applying for a small business loan, you must consider your borrowing options. A potential creditor must have a detailed repayment plan in place. This EMI calculator will assist you in devising a repayment plan. Your EMIs should not put a strain on your current financial situation or liabilities. It saves a lot of time and money if you plan and keep things transparent in the loan application process. You’ll be one step closer to getting your business loan if you follow the above steps.
4. Boost Your Credit Score
Your credit score is used by investors to assess your financial reporting abilities. It’s important to keep in mind that when you’re looking for business financing, the lender may still look at your credit score. A decent credit score serves as a tool for increasing lender trust and a prospective borrower’s image in the lending industry.
It would be hard to obtain loans from private or public sector banks if you are new to banking and do not have a financial background or credit score. You can get business loans for your startup by approaching Non-Banking Financial Companies (NBFCs) despite getting a credit score or financial background. Even you don’t have to comply with a long list of eligibility criteria with NBFCs.
Here are some operations for which you can use a business loan for Kirana store:
Renovation of a Store
The majority of Kirana Business owners need their establishments to stand out. As a result, they devote a significant part of their earnings to the shop’s repairs. However, if you are low on cash, you could take out a business loan to renovate the Kirana Shop. So when the shop is repaired, that entails the cost of labour, supplies, and everyday loss. As a result, a business loan will be used to cover all of these costs.
Creating a New Business
Many company owners own several Kirana Stores and want to expand their operations. So, if you want to expand your business by opening more Kirana Stores in your neighbourhood, you can get a business loan to do so. You can use the loan money to purchase more items for your new store.
Purchasing and Storing Equipment
Milk and curd goods should be kept in a cool place. A business loan will assist you in purchasing Deep Freezers or other refrigeration facilities for storing milk items. You can also add new counters or shelves for your Kirana Store to make it more appealing.
As your business grows, it stands to reason that the strength of your workforce will grow as well. You’ll need to find additional employees to pay them their wages. As a result, a business loan for local kiranas will assist with managing the costs of new employees.
Final Words Small business loans have been an essential aspect of modern business, with the majority of them provided for local kiranas to finance their short and long-term needs. After all, with a large number of local kiranas looking to convert their plans into practice with the small capital available, obtaining such a loan can be difficult. So, to take advantage of those attractive features & benefits, apply for business loans with FlexiLoans.