How to get loan for kirana store:
Are you thinking of Setting Up Your Kirana store? However, opening such as store needs capital investment. You need to apply for a micro, small or medium enterprise (MSME) loan to start your own kirana store. And, while doing so, it is important to avail such loans at the best interest rates and repay them with ease. You need to find the answer to “which business loans offer the best interest rate for Kirana shop?”
However, running a grocery store has average modest profit margins, and you’ll always need to reinvest your business profits into restocking activities. Therefore, it is important to get the best interest rate on a business loan used for setting up your Kirana store. The best interest rate will help you avoid falling into a debt trap and will also ensure that your Kirana business stays afloat.
HOW TO GET BEST INTEREST RATE FOR GROCERY STORE BUSINESS LOAN?
The following tips can help you get a business loan for your Kirana shop with the lowest interest rate. With the help of these tips, opening a grocery store in India will become less of a hurdle for middle-class and lower-middle-class entrepreneurs.
COMPARE BANKS AND OFFERS
To find the best interest rate for a grocery store loan, you need to do a lot of research . With the help of online blogs, forums, and websites, the answer to “how to find the best interest rate for Kirana store loans?” becomes a lot easier. There are several trusted websites which compare the interest rates of different banks. These comparisons will give give you a snapshot of the current landscape for SME loans in your city/state. You also get to know the ongoing offers of small business loans. Such websites also compare loan schemes of private banks with multinational and national banks. They also help you find the best government loans with low-interest rates for SMEs.
SECURE YOUR ASSETS AS COLLATERALS
After analyzing the interest rates and checking out the offers, you can also choose to lower the rates further. If you have any physical assets under your ownership, you can enlist them as a “collateral security” for the loan. Since the loan amount is small, you don’t need to have a sizeable asset to keep in as security. This step improves the trust factor between you and the bank. As a result, the bank considers lowering your interest rate.
GET A SHORT-TERM LOAN
One of the mosteffective ways of getting the best interest rates is lowering the tenure. If you can repay the loan amount in less than a year, then your loan can be drawn for the same tenure. The shorter the loan tenure, the lower the interest amount. If you can repay the loan easily, go for the SME business loan with the shortest tenure being offered by the bank. You can also apply for fintech startups that are growingly supporting small businesses in India. Such organizations can provide your deeper knowledge of ways to lower the interest rates of your loans. In addition to this, they can also help your grocery store business become a success story with GST advantages and other tax benefits.
TRY FOR MAXIMUM DOWN-PAYMENTS
While running a Kirana shop, you should not be bothered by the interests of the EMIs. If the monthly profits from your grocery store increases and is better than the interest amount being given in EMI , then you won’t be need to prepay such loans and still keep the grocery store running.
If the situation is reverse when your profits are not high or you are in losses, then you might default on EMIs.Hence, it is preferable to have some percentage of the loan amount already paid-off in the beginning. According to your financial situation and repayment capacity, you can provide as much downpayment as possible while getting an SME business loan for your grocery store. This can lower the interest rates considerably and give you some ease with the installments.
APPLY FOR GOVERNMENT LOAN SCHEMES
If you’re looking for instant business loans to open a Kirana shop, then there are several government schemes that can support you. In India, the PMRY loan scheme is one of the better SME loan that the government is offering. It has low-interest rates and flexible tenures. Such government-backed loans will not stress you out financially. You can repay the grocery store loans seamlessly if they are drawn from government schemes and offers. You can also learn about the tax benefits of such schemes for your Kirana business.
If you’re looking for instant business loans to open a grocery shop, then there are several government schemes that can support you. Currently, the PMRY loan scheme is the best SME loan that the government is offering. It has low-interest rates and flexible tenures.
Such government-backed loans will not stress you out financially. You can repay the grocery store loans seamlessly if they are drawn from government schemes and offers. You can also learn about the tax benefits of such schemes for your Kirana business.
Apply For Shop Loan
We can help you get an SME loan for your grocery store business at the best interest rate at National info. National info helps small businesses around India by serving as a consulting platform to provide reach to our channel partners who directly deal with banks to process our readers loan requirements.. With us, you can find an instant loan consultation over the phone to help run your Kirana store today.
Grocery Store Loan Documents Required
| Proprietorship | Partnership | Pvt. Ltd. / LLP / One Person Company | |
|---|---|---|---|
| Bank statement (12 months) | ✓ | ✓ | ✓ |
| Business registration proof | ✓ | ✓ | ✓ |
| PAN Card | ✓ | ✓ | ✓ |
| Aadhar Card | ✓ | ✓ | ✓ |
| ITR of the previous two years | ✓ | ✓ | ✓ |
Grocery Store Loan Fees & Interest Rates
Best Grocery Business Loan Providers in India
The small grocery stores require external funds since they frequently run into problems with their cash flow. Competing with the big players in the market, such as big bazars, amazon, flipkart, reliance, etc is not an easy task.
Loans for your grocery store business can also be required to run the business efficiently and make good profits. Maintaining good inventory is also important for a grocery store owner to take full advantage of.
In all, grocery store business loans can be very beneficial for the store owner. He can use it in a number of ways to help his business grow. We offer small business loans for a grocery store at the most competitive interest rates in the market. Our different business loan products include MSME loans,shop loans, Flexi loans, term loans, and bakery loans.
How to Apply for Grocery Store Loan
Here are three steps process to grocery shop loan apply online from ZipLoan:
- Submit Application – Simply enter your personal, business, and financial info to receive a loan offer from our consutlants . Click here
- Provide Documents – Provide digital copies of your documents for verification.
- Get Sanctioned – Receive your business approval and disbursal within 3-5 working days subjects to banks/financial institutes approva/terms.
How to Grow Business with Grocery Business Loan?
The grocery store business loans can be used in the following ways to grow business:
Working Capital:
Almost every business faces a shortage of working capital at some point in time. To ensure this does not affect the everyday work and operations of the grocery store, a loan for a grocery store in India can be availed.
Inventory Management:
Inventory is the most important asset of a grocery store. A small business loan for a grocery store can be used to increase inventory. With more inventory at the show, you will be able to sell more increase in your profits.
Marketing & Advertising:
Advertising and marketing are important in today’s world of cutthroat competition. The growth of the grocery store business is much dependent on its marketing strategies. A loan for a grocery store can be used for the same purpose.
Business Expansion:
Expansion and growth go hand in hand. Expansion of the business brings growth and grocery store financing can be very helpful for the same purpose.