A departmental store is a retail store having a wide range of products of different categories. Every product is stored in their respective departments. You can find a variety of products under one roof but in different departments. But when it comes to departmental store expansion then one needs a lot of financial support. So, if you are willing to borrow some funds then you must take a business loan for departmental store. The loan is available at a starting rate of Interest of 20% and you can avail a maximum loan of up ₹5 Lacs. It can be utilized to enhance one more department in your store. But first, you must see how a business loan will help you expand your departmental store business.
Eligibility Criteria and Documents for the Business Loan for Departmental Store
If you are thinking to fulfill the above needs then you must apply for a business loan. But before applying for the loan, you must keep your documents strong and see whether you are eligible for the loan.
- Business Registration Proof is Mandatory.
- 2 years of Business Vintage Period has to be proved.
- Either Office or Residence in the City to be Self Owned in the name of Parents, Self, or Spouse.
- Current Account and Saving Account Bank Statement are Acceptable.
- No Personal Loan or Business Loan has been taken in the last 3 months.
- KYC of the Applicants and Co-Applicants
- Ownership Proof
- Business Registration Proof
- Last 6 months bank statement
Quotes from 18 banks | Instant Approval | Maximum Loan Eligibility
Details of the Loan for the Departmental Store
|Minimum Loan Amount||₹1 Lac|
|Maximum Loan Amount||₹5 Lacs|
|Minimum Rate of Interest on a Reducing Basis||20% per annum|
|Maximum Rate of Interest on a Reducing Basis||25% per annum|
|Minimum Tenure for the Business Loan||1 Year|
|Maximum Tenure for the Business Loan||3 Years|
|Business Vintage Proof||Minimum of 2 Years|
|Minimum CIBIL Score||725 Points|
Need for the Departmental Store Loan
Now, you must see the various needs that can be fulfilled through a business loan. You can put the loan amount to improve the performance of your departmental store.
Renovating the Department
There are many departmental stores that need renovation after a time span of 10 years to 15 years like whitewashing, floor cleaning, and many other such activities. So, you need a lot of funds to execute these tasks and it has to be done in a larger space. Therefore, you can take a business loan for renovating the store so that it looks attractive and more customers come into the store.
Setting Up a New Department
You can also set up a new department in the store of those products you are not having currently. Suppose you have a department for clothing, FMCG Products, Furniture, and you want to acquire the footwear department then it is suitable to take a loan and put the funds in acquiring a new department of footwear.
If you set up a new department in your store then it is obvious that you will have to hire manpower to run that department. So the business loan can help you to manage the salary of the new employees that you have hired for the new department.
Buying Electronic Equipment
You must have seen that every billing counter needs a computer system and a bar-code scanner at the time of billing. So, the business loan for departmental store can help you to buy the computers and bar-code readers in bulk.
If by any chance a product gets out of stock then it breaks the customer’s loyalty towards the departmental store. So, it is better to maintain inventories to keep your customers connected. You can use the business loan amount to maintain inventories in the warehouses.
Putting a Security Setup
Most of the departmental stores have CCTV Cameras and a guard. So if you want to strengthen your security system then you must install a camera in your store and hire guards as per your needs. All these tasks need funds so you can utilize the loan amount for setting up the best security system.
Bank and NBFCs Lend Departmental Store Loan
There are a lot of banking and non-banking financial institutions that lend loans to the Departmental Store owners but the following institutions will lend you the loan at the above-mentioned interest rate and tenure.
Major Cities from where you can Apply