We at FlexiLoans offer a loan for shopkeepers to set up and expand their business. In this post let us explain in detail about the loan process. Before that, you must understand about a shopkeeper and their role. An individual or a set of people who start a shop to sell products are called as a shopkeeper. They can be selling any product from grocery to clothes, to auto parts, and much more. These people may prefer to set up small shops with low investment or rent out malls with huge investments. Irrespective of the size of the shop we would offer them a business loan.
Why does a shopkeeper require a business loan
The obvious answer to this question is, shopkeeper needs a loan to start his shop. But there are more to it and we have listed the following reasons for a shopkeeper applying for a business loan.
- Purchase a new shop or expand the business – Many people dream to make their own shop. But due to lack of finance, they join as an employee for a monthly salary. Those people can approach us for a business loan. Under business loan for shopkeepers scheme, we offer up to one crore.
- Inventory Increment – With the help of the loan one can increase the inventory and hence purchase best quality products. This will increase their sales and they can achieve better ROI
- Enhance the operating cost – This is a competitive world and everyone should run a race with others. Therefore with a loan amount, it is now easy to improve the operating cost and stay ahead of the competition. Meeting daily expenses will become easy letting the shopkeeper focus on the new business model
- Shop Renovation – How much ever products are available in the store, the look of the shop only will fetch customers. Applying for a business loan will improve cash flow and one can renovate the shop for a better look and feel.
Which is the best place to apply for a business loan?
All the banks offer a business loan for shopkeepers, also the NBFCs offer a loan. These Non-Banking Financial Corporations is the choice for small business owners to apply for a loan. Bank loans are regulated by the Reserve Bank and Banking Company Act. They will be very strict and several rules are imposed preventing shopkeepers to get the loan approved. Therefore NBFCs are the best choice for loan seekers.
How does NBFC differ from Banks in issuing a loan to shopkeepers?
- There are many SME lending firms available that offer loan to small, medium and large scale enterprises to start shops across the location in India.
- These people offer personalized service and do not enforce any rules on the loan seekers
- They follow the online process and hence the approval time is less and the entire process happens by just applying online and uploading documents.
- Due to many players in the market, these firms provide a competitive interest rate and also provide easy repay options
- Even shopkeepers with low credit score can now reach these firms to get a loan for expanding their business.
Who is eligible for a business loan
Now, you have identified that SME lending companies will offer a loan for you to set a shop. But still, you need to be eligible for getting a loan. Find below the minimum conditions to be observed for getting a loan
- You must have completed 21 years to start your own business. Also, must be less 65 years.
- Should have a decent CIBIL score
- Must have filed ITR
- Should have clear track records of repaying the loan if any taken in the past
Documents required to apply for a business loan
- KYC document It includes your identity proof, address proof, PAN card, date of birth proof, and passport size photo taken recently.
One of the documents can be submitted for identity, address, and date of birth proof. One document each should be submitted.
Aadhar card, voter id card, driving license, passport, bank book with photo, SSLC certificate (DOB), etc
- Financial documents Submit bank statement for the last 6 months to prove the financial status. Also, collect the tax paid receipt or the tax filed copy to submit as proof about the income flow. Shop if already set, then the profit and loss statement must be submitted
- Plan Whether it is a new shop or renovation of the existing shop the plan document must be submitted. This will help the lender understand the need for the loan and the return from the business.
Why choose FlexiLoans?
As mentioned above there are several players in the market named as NBFC who offer loan to small and medium businesses. How FlexiLoans stand top among them? Find below our best features in offering a business loan for shopkeepers
Loan Process – Our process is completely online and you can get a loan in just one click. You need to fill the form with your personal and financial details. Upload supporting documents and click submit. Yes, this is the process which you need to follow to check with us for a business loan.
Loan Amount – We offer up to one crore and you can talk to us about your plan to let us know how much amount you need.
Loan Duration – The loan processing time is 48 hours and amount disbursal within 2 business days after approval. You can choose to decide the loan tenure and longer the tenure lesser is the EMI amount
Loan Charges and Interest Amount – The fees and other charges required for applying for a loan is very nominal and is not more than 2% of the loan amount. We pay loan deducting this amount and the first-month repayment. Later on, you can pay on a monthly basis and we will provide you with a clear calculation to understand how much you need to repay.
Security – There is no collateral demanded by us when you apply for a loan. Absolutely no guarantee asked and you can feel free to approach us for a business loan.
Loan Locations – In more than 100 cities in India we offer a loan for you to start a shop.
Kind of shopkeepers who can approach us for loan – We are ready to offer you a loan for setting up the following shop s in India.
- Retail shop
- Garment shop
- Electronics
- Appliances
- Grocery
- Hardware & Sanitary
- Computers
- Mobile
- Fashion Jewellery Accessories
- Baby care
- Furniture
The list goes on and you can approach us in person to confirm your nature of shop and the business model.
Your Next Action for a business loan
- Get the documents mentioned above ready as an e-copy
- Click here and fill the form
- Upload the documents and click submit
We will get in touch you to approve your loan