Kirana stores, or grocery shops, are the backbone of the Indian retail sector and play a vital role in ensuring that essential goods and supplies reach the end consumer. According to a report by the Confederation of Indian Industry (CII) and Boston Consulting Group (BCG), Kirana stores account for 89% of the $600 billion Indian retail market.

Despite their importance, Kirana stores have traditionally been underserved by financial institutions. For instance, a grocery store business has to rely on personal savings or loans from friends and family for business operations. This has changed in recent years with the advent of specialised Kirana store loans or business loans for shops that offer easy financing solutions tailored to the needs of small grocery businesses.

Features of Kirana Store Loans

Some of the key features of loans for kirana stores are as follows:

Quick and easy approval

Kirana store loans are designed for small businesses that may not have the required documentation or credit history to apply for traditional bank loans. These loans can be approved quickly and easily, with minimal documentation.

Flexible repayment options

Small business loans for grocery stores offer flexible repayment options, with loan tenors ranging from 12 to 36 months. This enables borrowers to repay the loan as per their cash flow and business needs.

Competitive interest rates

Interest rates on Mudra Loans for kirana shops are usually very competitive compared to other types of business loans. This makes them an attractive financing option for small grocery businesses.

Collateral-free

Most Kirana store loans are unsecured, meaning they do not require any collateral to be eligible for the loan. This makes them an ideal option for small businesses with no valuable assets to offer as collateral.

Benefits of Kirana Store Loans

Kirana store loans offer several benefits to small grocery businesses, including:

Easy access to capital

Kirana store loans provide easy access to capital, which can be used for various purposes, such as working capital, inventory financing, or business expansion.

Pay at your own pace

As mentioned earlier, Kirana store loans offer flexible repayment terms, which enable borrowers to repay the loan as per their cash flow and business needs.

Low rate of interest

Interest rates on Kirana store loans are usually very competitive compared to other types of business loans. This makes them an attractive financing option for small grocery businesses.

Nil to minimum security disbursement

Most Kirana store loans are unsecured, meaning they do not require any collateral to be eligible for the loan. This makes them an ideal option for small businesses with no valuable assets to offer as collateral.

How to Apply for Kirana Store Loans

The application process for Kirana store loans is usually straightforward. Most lenders have an online application process that can be completed in a few minutes.

Borrowers will usually need to provide the following documents:

1. PAN card
2. Aadhar card
3. Bank statements
4. Income tax returns
5. KYC documents

Once the application is complete, the lender will assess the borrower's eligibility and offer terms and conditions. If the borrower accepts the offer, the loan amount will be disbursed to the borrower's account within a few days.

Fees and Interest Rates for Kirana Store Loans

Here is a glimpse into the fees and interest structure of Kirana store loans:

Get Grocery Store Financing without any Hassle

At FlexiLoans, we have a clear understanding of the fact that not all businesses can avail secured loans because of the unavailability of assets. Thus, we work to help such businesses run their grocery stores most efficiently. With us, you can avail of loans without providing any security or collateral. All our term loans for Kirana store and vendor financing products come without collateral with the loans being disbursed within just two to three working days.

Growing Your Grocery Business with Line of Credit Loans from FlexiLoans

Once you complete the process of meeting the eligibility requirements for availing loan against POS or other financing options from FlexiLoans, you can get funds immediately in your account. You do not require any collateral, security or guarantee for availing such loans from us. And yes, you also do not need a guarantor. The ones who are interested in availing grocery store loans from us can check our online portal for understanding whether they are eligible or not. We are into providing loan amounts up to 1 crore while disbursing the loans at an instant. With us, you also get the facility of premature loan closures. Also, there is no documentation involved in applying for grocery store loans from us with everything carried out online.

Eligibility Criteria for Kirana Store Loan

The eligibility criteria for Kirana store loans vary from lender to lender, but usually involve the following:

• The borrower must be an Indian citizen aged 21 years or above
• The borrower must have a valid PAN card
• The borrower must have a minimum annual turnover of Rs. 1 lakh
• The borrower must have been in business for at least 1 year
• The borrower must have a good credit score

Documents Required & Basic Eligibility for Grocery Business Loan

Frequently asked questions