Young beautiful girl is shopping in the Mall
A shop can be a great way to start a business. It can help you get the recognition that you want. It isn’t as simple as it seems. A loan to purchase a shop is a good backup. If one wants to buy a commercial property for their shop or start a business, they can get a loan to finance it.
It is important to remember that a business loan can be obtained even after establishing a company. This is for expansion, equipment purchases, and day-to-day operations.
What are the benefits and features of a shop loan?
* Accessibility:
Lenders offer different types of loans. Different financial lending institutions offer a customized repayment plan tailored to each business’s cash flow. This ensures that business owners don’t have difficulty paying back the loan. The monthly payments can be increased or decreased by business owners depending on their profitability.
* Loan tenure:
Businesses can get a short-term or long-term loan depending on their business needs. Business loans are usually unsecured loans and are available for a shorter term. The loan term is typically between 12 and 60 months.
* Flexibility:
There are many options for business owners to get loans that meet their needs. Sometimes, borrowers can also use an overdraft facility to allow them to overdraw their accounts. Small business owners have the flexibility to borrow for shop purchases and then repay them.
How do you apply for a loan to a shop?
The process for every type of business loan is generally the same. Some requirements may vary depending on the loan you apply for. To get the loan application process underway, there are three steps.
1. Complete the application form –
Fill out the application form correctly and with all your financial, professional and personal details. Once you have filled out the form and entered the necessary information, a representative will contact you to explain the product and give you details about the interest rates, repayment details, and the term of the loan.
2. Upload your documents –
Online applications will require you to complete the documents. A business loan EMI calculator can help you calculate the amount of the installation you have committed to. This will allow you to determine if you have the financial ability to repay the amount and adjust the principal amount accordingly.
3. Your loan disbursal –
Your funds will be available in your account within 24 hours of your loan application is approved. You might need to wait up to three days before the amount is reflected in your account.
Shop loan eligibility
- Must be self-employed
- Must be between 26-66 years old
- Your business must have been in operation for at minimum 3 years
What documents are required to obtain a shop loan?
Every lending institution will ask for certain documents when granting a shop loan.
Here is the complete list.
- Filled application form with one passport-size picture, Identification proof (passport, PAN or Voter’s ID, driving license, etc.
- Proof of residence such as ration card/leaser arrangement/telephone bill/electricity bills/passport/sales certificate/trade license
- Proof of age such as passport, photo PAN card or voter’s ID card
- Financial documents such as IT returns for the last two years, bank statements for the last six months, and P&L (and balance sheet) of the past two years audited by an auditor.
To start a business, one can apply for a loan for shop or commercial use. A good credit rating is essential for the loan application. This will ensure a timely repayment. Do your research thoroughly and follow all the steps to get a loan to buy a shop.
