Business Loan for Shopkeeper
Investment requirements to open up a shop:To get started on owning a shop, quite a bit of investment is required. One would need to buy a shop, hire manpower, buy stock and also manage the costs related to registering the business. In terms of actual figures, the initial investment could set one back by Rs. 1,00,000 to Rs. 5,00,000.
Business Loan for Shop Features & Benefits:Business loans are highly customisable today. The loan amount is varied, and the interest rates are set after reading through case to case. You can choose the tenure that’s best for you. Some more features and benefits of having a business loan are: 1. Fast loan processing: Today the entire business loan application process is online. This makes the process faster. Everything from the application to the disbursal is done quickly. Your loan from LendingKart can get approved in one day. 2. Fast disbursal: Loan disbursal time is also changing. The time for the loan amount to reach your bank account could be as low as 3 days. You no longer have to wait for days on end to get your loan approved and disbursed to you. 3. Low-interest rates: Big data and analytics are becoming more commonplace nowadays. It is being incorporated everywhere and is helping companies understand what interest rates should be. This makes the interest rate different from case to case. The applicant’s financial history and record are deciding factors to decide their interest rate. 4. Flexible repayment: The applicant can choose to pay off their loan monthly or bi-monthly. There are advantages to both methods. Bi-weekly would mean you would be repaying off the loan quicker. 5. Flexible tenure: The tenure for your loan is also customizable. You can choose the tenure best suitable for you. We offer tenure up to 36 months.
Eligibility Criteria:We do not have too many eligibility criteria to avail off a business loan. The eligibility criteria for business loans at Lendingkart are:
- The applicant must be a citizen of India
- The age of the applicant should be between 21 years and 55 years.
- Most business loans require a minimum turnover amount. For example, minimum turnover of Rs. 90,000 or more in the months before your loan application.
- If your business is already established and you are applying for a loan, you must be in operation for more than 6 months
- The business must not be in the blacklist or excluded list.
- The location of the business should also not be in the negative location list.
Documents Required:The basic documents needed for a business loan are:
- Applicant’s identity proof like a driver’s license, PAN card etc.
- Applicant’s address proof like a driver’s license, aadhar card etc.
- Business PAN Card
- Bank statement of last 6 months
- Business documents like a sole proprietorship declaration.
Fees and Charges:Fees and charges that you would have to pay as an applicant on LendingKart are as follows:
- Interest rate
- One time processing fee
- Pre-closure charges
- Pre-payment charges
- Overdue EMI interest
|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 Business Loan for a Shop:The basic application process for an applicant is as follows:
- Put in your application: Submit an application for your business loan request. You can put in the request online. Some basic details will be asked from you. Once your application goes in, you might be contacted by a representative for some more details. You will be told of the tenure, interest rates, repayment details etc.
- Upload documents: If you are applying for a business loan on a digital platform, you will be asked to upload documents online. The documents will be analysed and checked. If all goes well, then the loan gets approved.
- Disbursal: If your loan is approved, the loan amount is disbursed to your account. You would have to wait for a period of 3 days for the loan amount to reflect in your account.
Loan for Shop FAQs:
1. Will the applicant have to give any collateral?
No, most lenders do not take any security or collateral.
2. Can the loan be pre-closed?
Yes, the loan can be pre-closed. Lenders usually charge a pre-closure charge, but the pre-closure charge can be put in after an EMI payment is done.
3. What are the tenure options available for a business loan?
Loan tenure options are different from lender to lender. Most lenders offer maximum repayment tenure of 36 months.
4. Will my credit score be checked for a business loan?
Yes, your credit score will affect your loan approval. In case you have a low credit score, you could get approved, but at a higher interest rate.
5. Can I get a loan for working capital needs?
Yes, you can apply for a business loan for working capital purposes.
6. Is there any way to speed up the loan application and the approval process of the loan?
You can help your case by submitting all the correct documents and business details for verification purposes.