If you are thinking of opening your own retail shop to give wings to your business, then there is probably a lot that you are considering. Starting a business and opening your shop from scratch could be a lot to take in, especially when you are in constant need of funds. The requirement of meeting the daily needs of your customers and providing the best service is quite high.
This is when you should start considering a shop loan. Whether you are looking for a new shop, renovate your interior, buy new equipment, improve your premise, or have other expenses, a shop loan gets it all covered.
Financial instruments like shop loans can kick start your business. Several financial institutions have launched new loan schemes over the years to meet your financial needs.
Why Should You Take A Shop Loan?
Following are the reasons for considering a shop loan:
- If your business is booming and you feel the need to expand the physical space but do not have sufficient funds at hand, you can consider a shop loan.
- If you are considering large-scale financing to build the business credit in the next few years.
- If you need machinery, materials, or equipment that costs a lump sum, you may need a shop loan.
- If you want to purchase more inventory to keep up with the demand for high-quality options.
- When your shop is not profitable anymore, and you want a fresh start, you can take a shop loan.
If you are still confused and considering which shop loan is the best for you? MSME loan could be the one-step solution. MSME loans are described as loans approved for Micro, Small and Medium enterprises from the Government of India under the MSMED (Micro, Small, and Medium Enterprise Development) act of 2006.
According to this act, MSME loans are to support these business enterprises in terms of their financing, infrastructure, development, and other areas. These loans focus especially on start-up owners, small business owners, women enterprises, and many more.
Benefits of Availing an MSME Shop Loan
There are several other benefits of availing of an MSME shop loan:
- MSME loans give you access to a huge amount of credit at once without any hassle. You can get a loan of as low as Rs. 50,000 to as high as 2 crores.
- You can have access to your loan credit very easily without any wait. You can expect funds to be transferred to your account as early as 24 hours after the approval of the loan.
- The loan is available to you at a complete collateral-free term. You will not have to arrange for a guarantor either.
- The loan is available on flexible terms where you can regulate your conditions. You can avail funds when needed out of your total Flexi loan sanction. You will have to pay only the interest and nothing more.
- You also have the option to pay only the interest in monthly installments and can pay the annual amount at the end of your loan period.
- MSME loans get approval quickly as compared to other loans. If you are taking the loan from a lender you have had prior working experience with, you can also avail of the loan on a pre-approved basis.
To enjoy all the perks of an MSME shop loan, all you have to do is to register yourself. MSME registration provides you a unique 12-digit number that you will have to provide to avail of the loan. You need to have your personal as well as business information at hand.
Documents that you will need during the registration include Aadhar Card, PAN card, Mobile Number, Email, NIC code, Turnover details, Number of employees, Address, Type of business, Investment, Bank details, and a few other documents.
Proprietors, Partnership firm, one person company, shop owners, Private limited company, producer company, co-operative societies, Hindu Undivided Family, Limited liability Partnership, Producer company and other associative that fall under the category of Micro, Small, and Medium Enterprises are eligible to obtain MSME registration in India.
Taking a shop loan at the right time could definitely be a smart move on part of the business. You can reach the height of your business pinnacle with this financial tool in no time.