Apart from digital start ups, almost every other kind of business requires a physical store. Whether it is a boutique shop, a patisserie or a beauty salon and when situated in the right location, it can help acquire a lot of customers. However, buying a shop, with adequate space and in a prime location would not come cheap, especially if it is a small business. It is not always possible for every new businessman to have that kind of cash reserve and this is where a shop loan can come in very useful. The loan money can be used to buy better premises for the shop or to shift it to a better location. NBFCs like Bajaj Finserv have collateral free shop loans which are tailor made to suit such requirements and the loan amount can be as high as Rs 30 lakhs.
A good credit score will go a long way in increasing the chances of getting shop loan at low rates of interest. One can increase the score by clearing away the dues and penalties and by making their payments on time. Be sure to clear out any unpaid credit card bills to increase the score. It is also essential to ready all the net worth proofs and documents like bank statements and IT returns. One should also check for business related documents like Profit and Loss Account statement and balance sheets. Identity proof documents like PAN cards and address proof are also required.
One of the best ways of convincing the creditor is to have a good business plan in place. This will be the key to show your creditor that by following the plan, the business is sure to gain prominence and make enough profit in the near future which will suffice to pay off the loan. If the lender is convinced that his money is in safe hands, then he is sure to approve the loan. Along with the Debt Service Coverage Ratio should also be kept in check and the Net Operating Income should be as high as possible, as in the amount that remains after deducting the essentials. SMEs and MSMEs who are looking for business loans at low interest rates can get instant financing up to Rs. 30 lakh from Bajaj Finserv and that too by submitting only a couple of documents.
Also Read: How To Get A Shop Loan To Run Your Business
