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Home > Business Loan for Shopkeepers

Business Loan for Shopkeepers

A business loan for shopkeepers is one of the perfect options for the shopkeepers to arrange for additional funds. At FlexiLoans, we offer term loans to a shopkeeper, enabling the shopkeeper to take his or her small retail business to a higher level. Majority of the traditional lending organizations provide collateral business loans for shopkeepers and also require several documents to be presented on the part of the borrower. This makes it very difficult for the shopkeepers to get loans mainly because they are unable to arrange the documents or provide collateral. In that case, they face rejections in trying to avail of a retail store business loan. In such situations, FlexiLoans comes to the rescue of the shopkeepers by offering loans for departmental stores, Kirana stores, and various other shops, and that too at the most attractive rates of interest.


Features & Benefits of Shop Loan

There are several features and benefits of taking a loan for a shop expansion include:

1. Lower interest rates

Unlike other business loans, where the interest rate may range anywhere between 14% to 35%, shop loans have lower interest rates. Although, interest rates vary depending on the lender and your eligibility. For your convenience, many lenders offer loan calculators. This can also give you an idea about the interest rate that you may need to pay.

2. Flexible repayment terms

With a flexible repayment option, you can manage your finances accordingly. When you take a loan to purchase a shop, You can request the lender offer a repayment schedule that best suits your business needs.

3. Tax benefits

Taking any form of loan to run your business benefits you by saving on taxes. Additionally, if you are running a small shop business you may even save on upfront licensing fees.

4. Online application

Flexiloans offer the option to apply for a Shop Loan. All you need to do is, visit the website, fill in the required details, check your eligibility and submit the form. This in return helps you to save time and also enables you to check the status of your loan application.


Investment Requirements to expand a Shop Business

The investment requirements to expand a shop vary depending on the type of business, the location, and the size of the shop. This is where a loan on a shop purchase can benefit you. With this loan, you can manage your various requirements related to shop business.

However, opening a shop may require some additional funds for various purposes. That may include:

Licenses and permits

Depending on the type of business, you may need to obtain certain licenses and permits to operate your shop. Although, you can get this information from your local tax governing offices or even a CA can help you with this. Remember, these services are not free and you may need to pay a fee.

Business Insurance

It is essential to have adequate business insurance to protect your shop from potential risks. The cost of business insurance will vary depending on the type of business and the coverage you choose.

Shop equipment and supplies

You will need to purchase or lease shop equipment and supplies, such as shelves, racks, counters, signage, etc. The cost of this equipment can vary depending on the type and size of the shop.

Inventory

If you plan to sell products in your shop, you must purchase inventory. The cost of inventory will depend on the type of products you plan to sell.

Marketing and advertising

You will need to allocate some funds for marketing and advertising to promote your shop. The cost of marketing and advertising will vary depending on the type of business and the location.

These are just some of the investment requirements you must consider when planning to open a shop. The exact amount of investment required will vary depending on the type of business, the location, and the size of the shop.


Shop Loan Fees & Interest Rates

The following table indicates the approximated charges and interest rates levied by the lender:

PROCESSING FEE This charge is taken by the lender to complete the loan. It generally represents a percentage of the loan balance and might be between 1% and 5%.
INTEREST RATE BY THE LENDER The lender's interest rate will be determined by several criteria, including the borrower's credit score, the kind of loan, and the loan conditions. Rates might range between 5% and 30%.
CLOSING CHARGES These are the closing costs, which include title insurance, attorney's fees, and recording expenses. They might range anywhere between 2% and 5% of the loan price.
MONTHLY MAINTENANCE FEE The lender charges this monthly fee to keep the loan account active. It might range between 0.025% and 0.075% every month.

How to Apply for Business Loan for a Shop online?

  1. Research the different types of shop loans available to you and compare interest rates, fees, and repayment terms to find the best deal for your business.
  2. Visit the website of your preferred lending partner.
  3. Work out how much money you need to borrow and for how long, as this will affect the type of loan you apply for.
  4. Decide whether you want a secured or unsecured loan – a secured loan will usually have a lower interest rate but will require collateral, such as property or equipment, to be put up as security against the loan.
  5. Gather together all the documentation you need to support your application, such as financial statements, tax returns, and proof of identity.
  6. After filling in the online application, in certain cases, you may need to visit the lender in person.
  7. Once your loan has been approved, the funds will be transferred into your account so you can start using them for your business purposes.

By following these simple steps, you can confidently apply loan for a shop and give your business the boost it needs to succeed.


How Can I Get a Loan For a Shop?

Just like getting a loan for other businesses, you can get a loan for a shop as well. All you need to do is follow the simple steps mentioned in the article. Lenders in India are more than happy to finance your businesses and hence help in boosting the overall economy of the country.

To help you further, you can follow these points:

  1. Have a good credit score
  2. If you have any existing loans, make sure you have not defaulted on any of your EMIs
  3. Make sure you have all documents ready when applying for the loan

Basic Eligibility Criteria

To be eligible to get this loan, you need to meet certain criteria.

These include but are not limited to:

  1. The interested individual must be at least 21 years old
  2. The age of the applicant must not exceed the maximum age of 65
  3. It is important for the individual to be a residing citizen of India
  4. Also, the applicant needs to have certain documents. Like a PAN card, proof of address, last 6 months' bank statements, Income proof, and Business proof
  5. The lender may even ask for a credit score. Thus, it is important to have a credit score of 650 and above.
Minimum Business Vintage 1 year
Monthly Business Sales Minimum 2,00,000

FlexiLoans- Easy and Quick Shopkeeper Loan Provider

FlexiLoans’ line of credit and merchant cash advance loans available for the shopkeepers come without collateral. Such loans go a long way in helping the shopkeepers in taking their small business to greater heights of success. The eligibility criteria for availing our invoice financing loans for shopkeepers are easy to meet. The interested borrowers can check the criteria throughout the eligibility calculator. With us, you can remain assured of getting the best rates of interests on shopkeeper business loans in the market.

We are into providing shopkeeper loans at easy to meet rules and terms and conditions. Our collateral-free loans for shopkeepers are available for traders, service providers, manufacturing units, pharmacy shops, chemists and even the ones who are into selling vegetables.

Why Make the Choice of FlexiLoans?

The market for shopkeeper loans is jam-packed with a large number of NBFCs offering loans to medium and small businesses. But FlexiLoans is one NBFC that stands out in this field mainly because of its online and easy loan application procedure. With us, you can remain assured of the fact that you will be receiving the desired amount at just one click of the mouse on your system.

We are into offering up to Rs. 1 crore as shopkeeper loan amount with a processing time of just 48 hours. The loan amount is disbursed soon after the loan approval, and this is what has helped us gain huge recognition in the market. Deciding on the tenure of the loan is wholly left to the borrowers. They just need to keep in mind that the longer the tenure of the loan, the lesser will be the EMI amount.


Documents Required for Shopkeepers Business Loan

Personal KYC PAN card
Residential Address Proof (Any One) Rent Agreement | Driving License | Voter's ID | Ration Card | Passport | Aadhar Card
Banking Last 6 months current account bank statements
Business KYC (Any One) GST Registration Certificate | Shops & Establishment Certificate | Business PAN Card

Frequently asked questions

What are the purposes for which I can get a loan via FlexiLoans?

FlexiLoans is here to provide you financial access for your business funding needs. You have to undergo simple and transparent Credit Evaluation, basic documentation before we disburse the loan. You may get loans via FlexiLoans for:
  • Expanding your business
  • Servicing regular working capital needs
  • Managing seasonal working capital requirements
  • Manage short term cash flow gaps

Why should I avail loan via FlexiLoans?

Quick credit assessment ensures fast disbursal of loan at best rates and flexible terms, thus providing financial access at a click! Our business is to help you grow your business.

Is any collateral required for a Shop loan?

Some lenders require collateral when applying for a shop loan. Collateral is an asset that can be used to secure a loan, such as a car or a house. If you default on the loan, the lender can seize the collateral and sell it to repay it.

What documents are required to apply for a loan?

KYC document

  • - Pan card

Proof of residential address (any one)

  • - Rent Agreement
  • - Driving License
  • - Voter's ID
  • - Ration Card
  • - Passport

Banking

  • - Last 6 months of bank statement of current account

Business KYC (any one)

  • - GST Registration Certificate
  • - Shop Establishment Certificate

Financial documents (For loans greater than 20 Lakhs)

  • - 2 years Audited financials
  • - Last 2yrs ITR
  • - GST Returns of 6 months

What happens if I pre-close my loan?

Some lenders may require a prepayment fee if you repay your loan early. This fee is typically a percentage of the loan amount.

Are there any charges other than interest rate that I have to pay to avail the loan?

We may charge processing fee to facilitate the loan towards legal and documentation charges. You may be charged penal charges for late or irregular payment behavior.

What is the eligibility of a business loan?

Basic eligibility for a business loan is your business should be running for at least 1 year and has monthly total sales of at least ₹2,00,000

Will my credit score impact my business loan?

Yes, your credit score may impact the shop loan interest rates you are offered on your business loan. You may be offered a lower interest rate if you have a high credit score. You may be offered a higher interest rate if you have a low credit score.

How can I speed up the loan application and the approval process?

You can speed up the loan application and approval process by ensuring that you have all the required information and documentation when applying for the loan. You should also make sure that you are honest and upfront about your business and your financial situation.

Can I apply for an MSME loan for a supermarket?

Yes, you can apply.

Quick credit assessment ensures fast disbursal of loan at best rates and flexible terms, thus providing financial access at a click! Our business is to help you grow your business.

KYC document

  • - Pan card

Proof of residential address (any one)

  • - Rent Agreement
  • - Driving License
  • - Voter's ID
  • - Ration Card
  • - Passport

Banking

  • - Last 6 months of bank statement of current account

Business KYC (any one)

  • - GST Registration Certificate
  • - Shop Establishment Certificate

Financial documents (For loans greater than 20 Lakhs)

  • - 2 years Audited financials
  • - Last 2yrs ITR
  • - GST Returns of 6 months

We may charge processing fee to facilitate the loan towards legal and documentation charges. You may be charged penal charges for late or irregular payment behavior.

Basic eligibility for a business loan is your business should be running for at least 1 year and has monthly total sales of at least ₹2,00,000