Food is something that keeps the wheels of life going. Restaurant business is a very profitable business to go into. People will eat no matter the occasion. If you are sad you eat, you are happy you eat. If you open a restaurant in the right location, it will easy bring in a lot of profit. But what is the first step to opening a restaurant, it is getting a restaurant business loan. There are a ton of factors to keep in mind when you are opening a restaurant, licensing, staffing, marketing, promotion etc. A lot of groundwork needs to be done to get a restaurant up and running and all of it requires quiet a bit of funds. A restaurant business loan will come in clutch.
Restaurant Business Loan Features & Benefits:
- Business loan for restaurants can be availed off for up to Rs. 2 crores.
- Loan processing is fast. The application and documents are done online
- Loan amount is disbursed to your account within 3 days. As opposed to 7 days if you choose to take out the loan from a traditional route.
- There is no need to put in a collateral for the loan.
- There are no hidden costs. All the fees and charges are made known right at the beginning.
- All interest rates charged for the business loan are fair and differ from case to case after taking into consideration the financial history of the applicant.
- There is a variety of loan tenures that the applicant can choose from as per their convenience.
- There are options to pay off the loan payments either monthly or bi-weekly. Paying bi-monthly would mean that the loan gets paid off easier.
- Applying for a loan online through Lendingkart makes sure that the applicant has complete ownership of the loan. You wouldn’t have to give up your assets.
Eligibility Criteria:The eligibility criteria for a restaurant loan from LendingKart have been kept at a minimum to make things easier.
- If the loan is taken for an existing restaurant, the restaurant has to be in business for 6 months at least.
- If the restaurant is already up and running than a minimum turnover of Rs. 90,000 or more is necessary in the last three months preceding the loan application.
- The business must not be in a blacklisted list for small business loans
- The location of the business must also be in a proper location.
Documents Required:The documents needed for a restaurant business loan are:
- Identity proof of applicant like a driver’s license, PAN card etc.
- Address proof of applicant like a driver’s license, aadhar card etc.
- Copy of PAN card of Business
- Business bank statements of last 6 months
- Legal business documents.
Fees and Charges:All the fees and charges that an applicant has to face when applying for a restaurant business loan are:
|Interest Rates||Between 15% and 27%|
|One time processing fee||1-2%|
|Tenure||Up to 2 years|
|Loan Amount||Rs. 50,000 – Rs. 2 crores|
|Repayment schedule||Monthly or Bi-weekly|
How to Apply Online for a Restaurant Business Loan?The application process for restaurant business loan is quiet simple and does not require any jumping through hoops.
- Apply for the loan online: The application process can be done Some common details need to be entered at the Lendingkart website. The website also has a tool if you wish to know how your EMIs would look like.
- Submit necessary documents: All necessary documents of the applicant needs to be uploaded online. Considering all documentation is minimum, this will not take much time at all.
- Loan disbursal: All the time saved in the whole application process is transferred to the applicant. The loan disbursal time is super quick. The loan amount reaches within 3 days.
- ID Proof: Aadhaar Card, PAN card, Voter ID, Driving Licence (any of these)
- Residential Proof: Electricity or water bill (latest), Ration Card (any of these)
- Proof of dairy business registration
- Partnership deed (if any)
- Passport sized photographs
- Banking documents: Salary credit of last 6 months
Restaurant Business Loan FAQs:
1. Can the restaurant business loan be pre-closed?
2. Can I get a business loan with a low credit rating?
3. Why are the interest rates low at LendingKart?
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