Business Loan for Kirana Store

Kirana Stores are the grocery shops that serve a major portion of income to our Indian economy. They serve customers with their basic necessity that is supplying food materials. But when it comes to their business expansion then they need some external financial leverage as a loan. So, here you can see the various details of a loan of you are looking for a Business Loan for Kirana Store. They are available at an interest rate starting from 20% per annum on a reducing basis. On the other hand, you can take a loan amount of up to ₹5 Lacs for a maximum tenure of 36 months. So, let’s see the details of the Kirana Business Loan.

Eligibility Criteria and Documents for Kirana Shops Business Loan

If you need financial support to fulfill any of the above needs then you must apply for a business loan. But you must make sure that you have all the documents mention below if you are taking a business loan.

Eligibility

  • 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

Documents

  • KYC of the Applicants and Co-Applicants
  • Ownership Proof
  • Business Registration Proof
  • Last 6 months bank statement

Business Loan

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    Details of the Kirana Store Business Loan

    Particulars Details
    Minimum Loan Amount₹1 Lac
    Maximum Loan Amount₹5 Lacs
    Minimum Rate of Interest on a Reducing Basis20% per annum
    Maximum Rate of Interest on a Reducing Basis25% per annum
    Minimum Tenure for the Business Loan1 Year
    Maximum Tenure for the Business Loan3 Years
    Business Vintage ProofMinimum of 2 Years
    Minimum CIBIL Score725 Points

    Need for the Loan for Kirana Shops

    Now, you must go through the need for this loan and how you can use it to earn more profits. This loan amount can be useful for you in many aspects so you must go through all of them.

    Shop Renovation

    Most of the owners of the Kirana Shops want their shops to look unique and attractive. So, they spend a major portion of their income for the shop’s renovations. But if in case you are falling short of funds then you can take a business loan for renovating the Kirana Shop. It includes the expense of labor, materials, and daily loss when the shop is renovated. So, all these expenses can be managed through a business loan.

    Buying New Agency

    The Kirana Shops have various agencies of different products. But due to the scarcity of funds, they are unable to acquire a new agency for their business. So, the business loan might help you to acquire a new agency or dealership of the FMCG products.

    Hiring New Workers

    If you are expanding your business then it is obvious that the strength of your workers will also increase. You will have to hire more workers and pay them their salaries. So, the business loan can be a helping hand to manage the expenses of the new workers.

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    Establishing Another Store

    There are many business owners who own more than one Kirana Store and they want to establish more. So, if you are looking for business expansion by establishing more Kirana Store in your city then you can take a business loan for doing so. You can buy more products from the loan amount and put it in your new shop.

    Buying Storing Equipment

    Milk and curd products need to be stored at a cool temperature. The business loan can help you to buy Deep Freezers or other refrigeration equipment to store the milk products. You can also build counters and new shelves for your Kirana Store so that it looks attractive.

    Hoarding Materials in Warehouse

    Every Kirana Store owner maintains stock in his warehouse. So, if you think that the demand for a particular product might increase in the future then you must maintain a heavy stock of those products into your warehouse. In such a situation, the business loan for Kirana Store plays a vital role.

    Institutions Lend Kirana Store Loan

    There are many financial institutions that lend Kirana Store Loans having different loan amounts, interest rates, and tenures. But there are two financial institutions that lend business loans for the Kirana Shops having the same loan amount, tenure, and rate of interest that are mentioned above on this page. They are as follows:-

    Cities Where Business Loan for Kirana Store are Easily Available

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