Expanding Your Grocery Store with Business Loans in India

Grocery stores, commonly known as Kirana stores in India, are the backbone of the Indian retail sector. They play a vital role in ensuring that essential goods and supplies reach consumers. According to a report by the CII—Confederation of Indian Industry and BCG—Boston Consulting Group, grocery stores account for 89% of the 600 billion dollar Indian retail market.

 

Despite their importance and successful business enterprise, grocery business owners have been struggling to get financial support to expand their business formal lending institutions. Traditionally, most grocery store owners have relied on their personal savings or borrowing funds from friends and families to meet their business financial needs.

 

However, over the years, this has changed drastically with the advent of various small business loan schemes offered by new-age lending organisations. Nowadays, most leading NBFCs in India, like Udyog Plus, which is part of Aditya Birla Finance Limited, offer unsecured business loans of up to ₹15 Lakh at affordable interest rates and minimal documentation. Also, you get quick approval, making these loans the go-to funding option for many small business owners in India, like grocery store owners.

 

If you, too, own a grocery store and are looking for ways to grow or expand your business—whether by opening another shop or extending your current store to stock more inventory—applying for small business loans in India could help you get the funds you need and accomplish your business dream.

 

How do you grow your business with a business loan for a grocery store?

 

You can apply for a business loan and grow your grocery store in the following ways:

 

• Working capital

  One of the major obstacles that most grocery store owners in India face when expanding their business is the lack of working capital. However, with a small business loan, you can get the funds to expand the business and keep the daily operations running as usual.

   

• Purchase inventory

  A critical facet of a grocery store is the inventory, i.e., the goods and supplies they have in stock at the store. If you cannot stock more inventory and cater to a larger audience base due to a shortage of money, applying for a small business loan can help you.

  
  

  By purchasing more inventory, you can give yourself the best chance to increase your sales and revenue, especially during the festive season.

   

• Marketing and advertising

  In today's competitive market, all business entities must advertise and market themselves to survive, and this holds true for grocery stores, too. You can use the small business loan to market and advertise your grocery business on different mediums and improve your business prospects.

   

Features and benefits of business loan for grocery stores

Nowadays, you can get a business loan in India for a grocery store business easily and enjoy a wide range of benefits, including:

 

• Easy access to funds

  Many lenders in India offer different types of small business loans to suit the different needs of the borrowers. As a grocery store owner, you can apply for a business loan that aligns with your needs and get access to funds easily.

  
  

  Some lenders like Udyog Plus offer unsecured loans of up to ₹2 Lakh with zero documentation, allowing you to easily get the funds you want.

   

• Flexible repayment options

  Lenders offer flexible repayment options, as well as the funds to expand your grocery business without hassle. You can repay the amount over an extended period and choose the EMI (Equated Monthly Instalment) payment frequently to suit your business's cash flow needs.

   

• Attractive interest rates

  Today, with different lenders in India, you can easily get a business loan at competitive interest rates. Lower interest rates automatically translate to lower EMIs, allowing you to repay the amount comfortably without feeling any financial burden.

   

• No security needed

  Another significant benefit of opting for a business loan to expand your grocery store is that you can get an unsecured loan. That means you need not offer any collateral as a security to the lender against the funds you borrow.

   

Eligibility criteria to get business loan for grocery store

No matter the purpose for which you want to avail a business loan, be it to start a new business or expand your existing grocery store business, your chances of getting the funds hinges on meeting the lender's eligibility requirements.

While the criteria may vary from one lender to another, nowadays, most lenders have a simple requirement, allowing everyone to take advantage of the loan facility. The common requirements include:

 

• Age limit

  You must be between 21 and 65 years old when applying for the loan.

   

• CIBIL score

  The CIBIL score is one of the critical factors that lenders consider while determining your eligibility for a business loan, as it reflects your creditworthiness. You must have a minimum CIBIL score of 675. The higher your CIBIL, the better your chances of getting the loan approved with more favourable repayment terms.

   

• Business type

  Business loans are available for all kinds of businesses; you must be a sole proprietor or own a business in the manufacturing, trading, or services sector.

   

Documents required for business loan for grocery store

 

Like any other loan, you must comply with the documentation process when you apply for a business loan to expand your grocery store. Although the documents you need to submit may vary from one lender to another and based on the type of business loan you avail, you may need basic documents like –

 

• PAN (permanent account number) card
• Identity proof
• Address proof of both your residence and business establishment
• Income proof

 

Conclusion

Running a grocery business in India can be challenging and profitable at the same time. You may need a regular flow of funds in the business to keep the business operations running and stocking inventory in your store. When you have the right amount and types of supplies in your store, you can have better chances of increasing your sales and generating valuable profit.

When you lack funds, you can always rely on getting a home loan with reputed lenders like Udyog Plus. These lenders offer unsecured loans at attractive interest rates and flexible repayment terms. To learn more about the loan and submit your application, visit the official Udyog Plus website.