As we go through our locality, we usually come across a lot of grocery stores. But, have you ever thought about how these stores were started initially? How did the businessman fill its store with goods in the beginning?
To answer this question, there are only a few businessmen who have their own money to start a business. While most start-up businesses depend on business loans to fuel their stores with goods or expand the existing business.
Also, to assist these start-ups there are several lenders and schemes available in the market that provide loans to grocery store owners to fuel their store at a good interest rate. Hence, in this article, we will be discussing different steps to get the loan approval easily.
How to Apply for Grocery Store Loan?
Today, there are several online lenders or banks that offer grocery store loans to small businessmen to fuel their stores or expand the business for better profit. Getting the loan approval is more quickly for the established grocery stores than the new one, but the loan will get approved if all the essential documents are provided correctly.
To apply for a shop loan, you should pass the eligibility criteria of the lender. In the below part, we have listed some of the common criteria mentioned by the lenders.
- Proof of business registration is compulsory.
- For established businesses, owners have to prove 2 years of business vintage period.
- The residence of the owner should be in the same city of business, either in the name of spouse, parents, or self.
- Statements of the bank account to be given with the documents.
- No loan should be taken before 3 months, whether personal or business.
- The business owner has a good CIBIL score to apply for the MSME loan.
If you have passed the above eligibility criteria fully, then make all the documents ready for applying for the business loan. The documents asked for applying business loan are as follows:
- KYC documents of the person who is applying for the loan and the co-applicant if anyone.
- Business ownership proof or certificate.
- Business registration details and proof.
- The bank account statement of the last 6 months.
With the above documents, a person can apply for a grocery store loan easily and after that, it will be sent for verification and approval.
Other Details Of Business Loans
- In the case of business loans, the lower limit is 1 lakh, while the upper limit is 5 lakh. But, this may vary depending on the organization offering the loan.
- The rate of interest for the loan varies between 20-25% per annum on a reducing basis.
- The period given to the businessmen to repay the loan varies between 1 year to 3 years, which depends on the loan amount and the option picked by the businessmen.
- The repayment of the loan is mostly done every month.
How Much Time Required to Get an Approval?
As the person applies for a loan by submitting all the required documents, it is sent for the final verification. On online platforms offering business loans, the verification process is very quick, varying between 1 hour to 1-2 days. After the verification, the money will be credited to the applicant’s account.
In the case of bank loans, this takes a longer duration, about 7-8 days. But, if the given documents are legal and correct, the chances are high that the applicant will get the approval.
Is Any Collateral Required for a Business Loan Online?
As we know, the business loans that are offered online are unsecured, which means it will not take any valuable asset as security for loan repayment. Hence, it gets clear that no collateral is required to go for a business loan online. Therefore, the only thing to stress about in online grocery store loans is to develop the store to quickly repay the loan within the tenure period. But, there is also an option, for any temporary issues in the business, the applicant can ask to increase the tenure for a few extra months.
For small business loans, online lenders are highly active with multiple schemes. They claim to offer the lowest interest rates in the market to assist business owners to grow in the market. Hence, in case, you run short of money to refuel your grocery store, remember that there are lenders who can assist you to recover.