A Retail Business Loan acts as a source of cash inflow for shopkeepers to unlock growth opportunities and navigate financial challenges in the dynamic retail landscape. Acquiring additional capital has gained significant relevance in today’s competitive market as it aids in expanding and sustaining a retail business. From business growth to disciplined financial health, here are the top 7 benefits of availing a shopkeeper loan.
Benefits & Features of Business Loan for Shopkeepers
A Business Loan can help you, as a retail business owner, unlock
financial opportunities and drive your business growth. Read the
following 7 ways in which a shopkeeper loan can benefit you.
1. Access Financial Flexibility
A
Retail Business Loan offers
shopkeepers the flexibility to choose the loan amount they need to
address their short-term financial requirements. Additionally,
shopkeepers get to apply for this credit type online, within just 5
minutes, from the comfort of their homes.
2. Get Competitive Interest Rates
Retail shop owners can enjoy competitive interest rates on a
Business Loan when they apply from leading financial
institutions. With a low interest rate, the financing option of a
Retail Business Loan offers a cost-effective solution that small
business owners can rely on.
3. Enjoy Collateral Free Business Loan
In some loans, borrowers may be required to keep collaterals by
mortgaging their personal assets or business properties. However, a
Business Loan does not ask for such collateral. This makes it an
attractive option for smaller shopkeepers who need financial resources
without worrying about keeping collateral.
4. Expand Your Business Growth
Availing a Business Loan for your retail shop can be helpful for the
expansion of your venture. You can also use the loan amount to buy
equipment for renovation purposes. Upgrading your business can assure
long-term financial growth. Moreover, you can also use the fund to
recruit talent for promotional purposes.
5. Flexible Repayment Facilities
A
Retail Business Loan offers flexible repayment terms and competitive
interest rates, making them an essential financial tool for
shopkeepers seeking financial stability. With various types of loans
to choose from, you can get tailored loans according to your
business needs.
6. Quick and Hassle-Free Disbursal
Shopkeeper loans offer quick and hassle-free loan disbursals, making
it easy for small and medium-sized businesses to access the funds
they need quickly. With a simplified documentation process, you can
borrow money instantly to meet critical demands. This is important
for businesses that need to stay responsive to market dynamics.
7. Build a Strong Business Foundation
A Business Loan for shopkeepers provides the necessary funds to
hire resources and manufacture quality products. This helps businesses
build a good brand image and have a loyal customer base who would
always turn to them expecting good quality products.
ALSO READ :- 7 Ideas to Grow Your Retail Business to the Next Level
Shopkeeper Loan Eligibility Criteria
You can easily meet the eligibility criteria for a Retail Business Loan. Read the following points to know if you are eligible for this loan type:
- Applicants must be an Indian resident.
- Applicants must be between the ages of 22 and 57 years.
- Applicants should have a business in operation for at least 2 years.
- The business turnover of the applicant should be ?6 Lakh and above.
Documents Needed for a Retail Business Loan
You need minimal documents to avail a Retail Business Loan, making the whole process of credit application convenient and straightforward. The documents that you need to submit is outlined below:
- Proprietor, director, partner or company PAN card for KYC details.
- Aadhaar card, individual or proprietor PAN card, voter card, driving licence or passport for address proof.
- Utility bills or rent agreement for address proof of the business place.
- The last 6 months’ bank statements.
Shop Loan Fees and Interest Charges
Retail Business Loan fees and charges include:
- Rate of interest ranges from 15-28% p.a.
- Processing fees of up to 3%, along with additional taxes
- Stamp duty charges as per the state
- Default interest of 3% per month
- Penal interest of 3% per month on the defaulted EMI
- Repayment instrument dishonour charges of ?1,000 per bounce
How to Apply Online Business Loan for a Shop?
Applying for a shopkeeper loan is simple. Follow the 3 steps written below to apply for a Business Loan online:
- Step 1: Tap on the ‘Apply Now’ button and move forward to the application form.
- Step 2: Enter basic details such as PAN number, email address, contact details, etc on the application form.
- Step 3: Provide the required documents to complete the verification process.
On successful document verification, your loan amount will be instantly disbursed to your bank account.
How Can a Shopkeeper Use a Shop Loan?
Retail Business Loans can be used in multiple ways to regulate your business operations. The four ways in which you can use this loan type:
- Purchase a new shop and expand your business with the help of this fund.
- Increase your inventory by buying new products of high quality.
- Use the funds to upgrade or renovate the interiors of their shops.
- Meet your daily expenses with the help of a shopkeeper loan and increase your working capital.
To Conclude
Shopkeeper Loans are a great option for small business owners who want to grow their venture while protecting their assets and maintaining control. These loans offer faster and more convenient application processes and are readily available to small business owners. So, get a Retail Business Loan today from Poonawalla Fincorp and enjoy a seamless loan application process and quick disbursals.
Frequently Asked Questions About Online Shopkeeper Loan
1. What is the minimum loan amount I can get upon
availing a shopkeeper loan?
The minimum loan
amount that you can avail as a Retail Business Loan is ?1 Lakh.
2. What is the required CIBIL score for a
shopkeeping Business Loan?
A CIBIL score of 700-750
or above is preferable for availing a Business Loan.
3. Will I need to keep any collateral to avail a
shop loan?
No, most leading financial institutions
do not ask for security or collateral for a shop loan.
4. What is the repayment tenure I can usually
expect for a shop loan?
The repayment tenure
usually depends on the loan amount and the rate of interest.
However, you can choose a tenure of up to 48 months to repay a
shop loan.
