Café Business Loan

With the new age startup wave hitting the country, a major transformation has been seen in the Restaurant Industry and has encouraged a lot of people to start up their restaurant ventures. Starting a café or a bakery is one such passion that has been emerging lately with various big and small bakery and café businesses cropping up.

For all the aspiring bakers who want to bring their dreams to reality; we bring a breakup of all the things you need to know to get a Café/Bakery Business Loan.

Loan for Café / Bakery

Many banks provide loans for starting up various food joints and can easily be availed by partnership firms, individuals, limited companies, and private limited companies. Loans under these schemes can be used for purchasing kitchen equipment, furniture and fixtures, construction of buildings and purchase of land and investing in the interior.

Types of Loans offered

  1. Asset-Based Loans- This type of loan can be obtained by using assets like machinery, real estate, and inventory as collateral security.
  2. Term loans- Useful for big investments, for loan tenure of 1 to 10 years
  3. Working Capital Loans- usually have High- interest rates useful for short term needs, payable in less than one year.

Loan Amount

Usually, loans for restaurants are sanctioned as overdraft facility for operational funding requirements or as term loans. A contribution of 25% must be made by the promoter towards the loan. Interest for a loan is floating linked to the bank’s base rate. The repayment period is up to 7 years when land and building is included in loan financing. In case of financing, only kitchen equipment or interior the loan repayment period is five years.

Getting Loan for Café / Bakery through Lendingkart

Lendingkart is a non-deposit taking NBFC, providing SME lending in India. The company focuses on transforming small business lending by make it easier for SME’s to access credit easily. It uses analytical tools and technology, analyzes a large amount of data points from several data sources to evaluate the creditworthiness of small businesses accurately and rapidly.

Key Features

Lendingkart provides loans for small and medium businesses in India. Our loans have a straightforward application process; they are free from the bureaucratic red tape that goes along with bank loans almost every time. Also, we offer a simple approval and disbursal process. We have specially designed an efficient digital interface that reduces human interaction and hence helps in speeding up the whole process.

Processing Fees2-5% One Time
  1. Fast disbursals and Turnaround Time: We offer loans quicker than the 59-minute business loan scheme. Our online business loan processing lets you get a loan in just three days as compared to 8-10 days taken by banks.
  2. Business Loan up to 2 Cr.: We provide business loans of Rs. 50,000 to Rs. 2 Crore to eligible SME’s. The chances of business loan approval increase because of our wider loan window, which provides the required funds for the expansion and growth of your venture.
  3. Express Business Loan Processing: Our loan processing times have gone a notch higher through our online loan application process. It saves us a lot of manual work and provides same-day loan approvals.
  4. Fair Interest Rates: We use machine learning and proprietary big data tools to determine the lowest rates of interest, which differ from case to case. Hence, the rate of interests that we offer is the best ones available.
  5. No Hidden Costs: We assure zero hidden costs and charges. The only fee that we ask for is the 1-2% processing fee depending on your loan. This way, more principal amount is retained with you so that you can use it for you’re the growth of your business.

Business Loan Interest Rates and Fees:

Customized Interest Rates

Starting from 1.25%

Pre-Closure Charges



Bi-Weekly/Monthly (Flexible)

Eligibility Criteria

Turnover for three months should be more than Rs.90,000

Loan Tenure

Up till 36 Months

Loan Amount

Rs. 50,000 – Rs.2 Crore

* Pre-closures only allowed after the full payment of first EMI

**Based on the health of your business, annual turnover and revenues  

Eligibility Criteria

We keep the eligibility criteria to the bare essentials so that to speed up the loan process. We don’t need a lot of documents or get into unnecessary paperwork which slows down the loan approval procedure.
  • The business should have been established and been in operation for more than a period of 6 months.
  • The business should not fall under excluded lists for SBA Finance/Blacklisted.
  • The minimum turnover should be Rs. 90,000 or more for the previous 3
  • The location should not fall under the negative location list.
  • Charitable institutions, NGO’s and Trusts are not eligible for business loans.

Required Documents


Business Registration Proof

Proprietor(s) copy of Aadhar card

Proprietor(s) copy of PAN card

Bank Statement of 12 Months





Business Registration Proof

Proprietor(s) copy of Aadhar card

Proprietor(s) copy of PAN card

Bank Statement of 12 Months

Partnership Deed Copy

Company PAN Card Copy

Pvt. Ltd./One Person Company

Business Registration Proof

Proprietor(s) copy of Aadhar card

Proprietor(s) copy of PAN card

Bank Statement of 12 Months


Company PAN Card Copy


For Business Registration Proofs we accept the following documents:

1. Drug License
2. TIN
3. VAT Registration
4. Business Registration Certificate
5. GST Filing
6. Gumastadhara
7. Trade License

Business Loan Process

Step 1: Submit Application

All you need to do is enter your business, personal, and financial information to receive a business loan offer.

Step 2: Upload your Documents

Upload copies of your documents for verification in just a single step.

Step 3: Get Sanctioned

Obtain your loan approval and disbursement in 3 Business days

Café / Bakery Business Loan FAQs:

1. How do I expedite my loan approval?

At LendingKart, we already process loans faster than banks; you can still make the process faster by providing us correct details and documents.

2. How does the company provide lower interest rates for businesses?

As we process business loans online, it helps in reducing the manual costs of loan processing. We use these savings to offer lower rates of interests to our customers.

3. What are the Collateral requirements for business loans?

No collateral is required as all business loans from us are unsecured.

4. What is the advantage of paying loan instalments bi-weekly?

If you are using a loan for working capital optimization, fast repayment of loan allows you to swiftly renew your loan hence converting into a type of revolving credit. Also, it enables you to make your loan repayment faster.