Food Stall Business Loans

The food industry is one of the largest and most booming industries in today’s times. It is one of the most pervasive industries which not only has a worldwide effect but can be seen in the largest of premises to the smallest of alleyways. As of 2017, the world food business was established at $5650 billion and has only been growing since.

People turn to food for all sorts of events and pleasures. One of the main contributing factors to this explicit growth is the prevalence of both food industries that distribute to commercial establishments as well as individual customers walking on the street. Having your own food business and a food stall is an option that calls for a certain level of dedication and investment.

Basic Investment

To have your food business stall or be a hawker, the applicant should be able to show the efficiency in being able to pay the starting investments. To be a food stall owner or a hawker, there are certain licenses and capital investments that need to be made.
  • Sellers permit
  • Vehicle license (if you wish to own a food truck)
  • FSSAI license 
  • Food handler’s permit
These are some of the many licenses and permits that need to be procured. If you wish to open a stall in a designated area, then capital needs to be acquired to pay for the stall setup. When owing a food stall or a food truck, other employees also are required to whom you need to pay a certain amount of remuneration.

Benefits of a Hawker/Food Stall Business Loan

Having a food stall business loan can lead to many benefits for the hawker or stall owner:
  • By applying for a food stall business loan, owners can get the required revenue to set up a proper stall and spend more finance on creating the foundation of the stall itself
  • A larger amount of resources and equipment can be purchased to kick start the hawker business or food stall.
  • Food stalls or food trucks generally required an additional helping hand to make the operation smooth and efficient. With the help of a food stall business loan, the stall owner can hire an employee on payroll to assist with the day to day workings of the stall.
  • Being a food stall owner generally means that you will have to have a designated place where you set your stall. Often to be able to set up shop in the allotted place, certain remunerations need to be made which can be capital intensive. By applying for a food stall business loan, the weight of heavy expenses can lighten up a great deal.
Having a food stall business loan allows speedy setting up of the stall itself and acquisition of the raw materials and equipment so that the stall may be open for business at the earliest.

Eligibility Criteria for a Food Stall Business Loan

The eligibility to apply for a food stall business loan are as follows:
  • The applicant should be an Indian citizen.
  • The applicant should be within the age bracket of 21 – 65 years.
  • The food stall business should be in vintage for a minimum of 3 years.
  • The food stall business or hawker should possess the income tax returns for the past year at least.
  • The applicant should have a registered chartered accountant to audit the balance sheets of the food stall business.

Documents required for Food Stall Business Loan

  • Proof of Identity: passport size photos, Aadhaar card, or voter’s ID card.
  • Bank Statements: bank statements of the past six years of the food stall business (if applicable).
  • Proof of Business Operation: Trade license, Food license, documents to support ownership, the balance sheet of previous years, deed to stipulate sole proprietorship or partnership, two years’ worth of income tax returns and profit and loss statements for the past two financial years.

How to apply for Hawker/Food Stall Business Loan through Lendingkart

Lendingkart, being an online provider of both business loans as well as working capital for businesses all over India, has a quick and simply process of the loan application. The process is completely digitized and easy to understand and follow by any business loan applicants.
  1. Visit the Lendingkart website at
  2. Submit an application stating the type of loan you wish to take.
  3. Enter the full details regarding the business that you operate or are a part of.
  4. Upload all the required documents and attach them to your business loan application. The documents that have been previously mentioned are the ones that are required.
  5. Submit the loan application along with the other documents.
After this, your application for a food business loan will be complete. All you have to do is wait for approval which will be some in a few days.

Fees and Charges Applicable

The following are the different charges that you, as a business loan applicant, will have to pay:

Rate of interest

1% – 2%



Fee on pre-closure


Processing fee

2% of the loan amount

Loan amount

Rs. 50,000 – 1 crore

Loan sanction time

 3 Days

Hawker / Food Stall Business Loan FAQs:

1. What are the repayment options and which one will be the most advantageous?

Lendingkart has repayment options which are both monthly and also Bi-weekly. Depending on the situation of the applicant, both options of repayment can be availed.

2. How long does it take to get a loan approved?

A loan application submitted to LendingKart will be approved within three working days.

3. Is there any other extra cost?

Being a complete online forum, there are no extra or hidden charges apart from the ones mentioned.

4. How are the interest rates so low?

Lendingkart has all its processing done online, which saves up on manual costs drastically. This allows the loan applicants to enjoy lower interest rates.

5. Is there any other document required for Food truck owners?

A food truck owner who is applying for a food business loan can provide his or her driver’s license and registered food truck number along with the other document when applying.