Among the 63,674 Petrol Pumps 14,592, 27,377, 15,287 belongs to BPCL, IOCL and HPCL respectively. The public sector petroleum companies are planning to establish around 65K petrol pumps across India by 2019. IOCL, BPCL, and HPCL have decided to set up around 26,982, 15,802, 12,865 petrol pumps in their networks respectively.
Due to the government’s digital India initiatives, the petrol pumps are witnessing cashless transactions through the Point of Sale (POS) machines. The banks and payment gateways are offering incentives for the cashless transactions transacted through their POS machines. Therefore, this has made petrol pumps to handle a large volume of transactions on a daily basis and has led to high sales through the card settlements.
First of all the fuel retailers need to maintain a steady operating cost to stand in the business. Apart from that one needs to make investment accordingly in warehousing, logistics and restock of the fuel when the fuel prices are low in the international market. Also, the cost of maintenance of the facility cost needs to be included.
It costs Rupees 12 Lac and 25 lac to open a Petrol Pump in rural and urban areas respectively. Places like Mumbai, Delhi, and Ahmadabad requires even more funding due to the fact that the cost of living is very high.
Like any other retail business the working capital, logistics, and operational cost play a major role in establishing this business.
The license fee is Rupees 18 and 16 per Kiloliter for Motor Spirit and High-Speed Diesel respectively for the dealer-owned sites at “B”/”DC” retail outlets. The license fee for the corporation owned “A”/”CC” site retail outlets is Rupees 48 and 41 per kiloliter for the Motor Spirit and High-Speed Diesel respectively.
There is a selection criterion for the land to install the petrol pumps. As per the notification the land needs to be of a certain area and can be owned or leased for a certain time period. Certain important documents need to be produced proving the ownership of the land, which will be written in the notification.
The location will be scrutinized by the oil marketing companies. They would like to see if the location will generate the required sales or not.
The tender will be released by the oil companies on the preferred locations. The location will be decided based on the vicinity to National Highways, State Highways, and the crowded market places.
Petrol pump highway
The area for the petrol pumps required would be 800 – 1200 Sqm.
Generally, the advertisement is published in social media and on the site of the oil companies. The applicant has to read this ad and prepare accordingly.
The advertisement will specify the location and the interested applicant can then apply online and obtain a license for opening the petrol pump in the specific city, region or state.
In the event of more applications, the oil companies will select the winner as per the lottery system. The applicant if selected must submit all the required documents.
Also if the license is allotted to the applicant, the applicant must register for the GST and open a current account in the name of his business.
The selection of the lender is very important and crucial for getting the business loan for the petrol station. Make your selection based on the reliability of the company, its website, basis of reviews and the industry standing. Make sure that the lender organization has approachable customer executives and a good network of offices.
Selecting a lender for the business loans for the petrol pump is a strenuous task and requires collateral and takes a very long time for the processing of the loan. And collateral makes the process difficult. FlexiLoans accept online loans and accept loan documents and application online. This makes the process simple and easier for the loan buyer to take loans and avail loans at the right time. As it is quicker and loan disbursal takes less time as 48 hours.
1. Get POS machines and digital payment handling System
A lot of people now depend on the digital cashless payments not only in urban areas but also in rural areas for retail shopping, eateries and fuel refills. The government’s digital India movement and government’s November 2017 demonetization movement has made this trend. There is a huge rise in the card transactions across India due to this effect.
As FlexiLoans is one of the Fintech Company, we will provide you with the cash advance on the daily revenue that you generate due to the cashless transaction up to 200% of the daily revenue. This is only for the petrol pump owners. By applying to the cash advance that is not a conventional loan but loan granted based on the future revenue, you can ensure that the short term working capital revenue is fulfilled.
The criteria for issuing this cash advance are that we need six months of credit/debit payment history on the POS. And then there need to be at least 7 to 8 customers who can make payment through the cards in a month.
2. Documents required for the petrol pump loan scheme
The advantage of receiving loans from FlexiLoans is that as a Fintech company the entire process is done online. For petrol pump loan process, you need soft copies to upload the documents online. Ensure that the following documents are available on your desktops as soft copies.
– Driving License
– Ration Card
– Rent Agreement
– Voter ID
– Shops and Establishment Certificate
– GST Registration Certificate
3. Loan Terms required for the business loans for the petrol pump
The cash advance loan tenure is nearly 9 to 12 months and is usually short term loan. The terms are that you need to generate revenue streams and a number of operational years in business. The loan is available in the range of Rupees 1 Lac to Rupees 1 Crore.
For repayment of the business loans, you must check the FlexiLoans website online.
4. Check the Interest Rates and the processing fee
The processing fee for the business loans for the petrol pump at FlexiLoans varies between 2% to 3%. Please check the interest rates online. There is no hidden clause or hidden fee.
5. Submit an online form to get an instant approval
Now having read the details given above we are sure that you are ready for applying for the business loans for the petrol pump at FlexiLoans. Fill your application, upload the necessary documents and after approval that takes a few hours the amount is credited in your account within 48 hours.
At FlexiLoans your loan amount will replenish your business needs and your business will see high growth.