Business Loan For Petrol Pump
Last Updated : Dec. 3, 2020, 5:46 p.m.
Nowadays you must have seen that there are millions of people who own a two-wheeler or a four-wheeler. It simply indicates that the consumption of petrol has been increased in the last decades. So, the requirement for petrol stations has also been increased. But you know that a lot of funds are needed if you are planning to set up a new petrol pump. Therefore the only solution to this problem is to take a Business Loan for Petrol Pump. It will fill the deficit of the funds invested for setting up a petrol station. Here, you can see various banking and non-banking financial institutions that grant petrol pump loans at an attractive rate of interest.
Business Loan for Petrol Station Interest Rate and Other Details
You must explore the details of the loans that are granted for the petrol pumps. See the interest rate, tenure, and maximum loan amount that you can get for the petrol refilling stations.
| Particulars | Details |
|---|---|
| Minimum Rate of Interest | 18% per annum on a Reducing Basis |
| Maximum Rate of Interest | 21% per annum on a Reducing Basis |
| Minimum Loan Tenure | 12 Months |
| Maximum Loan Tenure | 36 Months |
| Facilities | Term Loan and Overdraft Facilities are Available |
| Minimum Loan Amount | ₹5 Lacs |
| Maximum Loan Amount | ₹30 Lacs |
| Minimum Business Vintage Period | 5 Years |
Eligibility Criteria for the Petrol Pump
- The minimum age of the applicant must be 25 years to take the loan.
- The maximum age of the applicant must be 62 years to take the loan.
- Your turnover must be at least ₹5 Crores or more.
- Your financials must be audited by a qualified Chartered Accountant.
- The business must have vintage proof on papers for at least 5 years.
- Proprietorship Business, Partnership Business, and Private Limited Company are eligible to take the loan.
Banks and NBFCs for Petrol Station Loans
If you are willing to apply for a business loan in order to expand your business then you must go through the banking and non-banking financial institutions that grant loans to petrol pump owners. The above details are only applicable to these financial institutions.
- Bajaj Finserv
- HDFC Bank
- TATA Capital
- IDFC First Bank
- Lendingkart
Documents Needed for the Loan
- Bank Statement
- Address Proof of applicant: Aadhar card, Driver’s license etc.
- Identity Proof of applicant: PAN card, Driver’s license etc.
- Proof of business registration
- Partnership Deed
- Company PAN card
Need for a Business Loan for the Petrol Pumps
You must see the need to apply for a loan and how it will be helpful to improve the activities of your day to day business.
Setting Up a New Petrol Station
Usually setting up a new petrol pump in an urban area costs ₹25 lacs and it costs ₹12 lacs in a rural area. So, in order to meet such financial needs, it is necessary to borrow a loan from the bank or NBFCs. It can help you to expand your business and generates more revenue.
Installing a New Refilling Machine
You can install a new refilling machine at your petrol station with the help of loans. It will increase your revenue because the sale of petrol will be more through the new refilling machine.
Hiring Workers
If you will expand your business and set up a new petrol pump then you will need a lot of workers to operate it. Hiring new workers and paying their wages or salaries will need a lot of funds. So, a Business Loan for Petrol Pumps can be the best solution to meet such expenses.
Renovation
If your petrol pump is getting old then it needs to be renovated. So, the loans can help you to renovate your petrol pump and make it attractive again.