Are you thinking of starting your own shop? While it can certainly be a profitable venture, funding shop purchase can be tricky. If you cannot rely on investors or venture capitalists to assist you in this regard, availing hassle-free loans can be a suitable solution.
Several lenders may be ready to offer you such advances like loans for grocery shops if you fulfil their eligibility criteria.
With this in mind, let’s take a look at some of the loans available to potential shop owners.
Business loans represent a popular option of financing your potential shop business from the get-go. Banks are ready to fund even small business finance, such as loans for grocery shops as unsecured credit. The maximum amount available to you largely depends on your annual income, CIBIL rating and other factors.
Some banks may provide such loans without collateral, while others may require you to provide any asset as collateral against the borrowed sum. Either way, you must stick to the repayment schedule set by the lending institution when clearing this debt.
You can also avail a personal loan from a preferred bank or NBFC if you require funding for your shop like a loan for garments shop. These loans have no end-use restrictions, meaning you are free to infuse the funds so raised into your new venture.
Here too, lenders consider your credit score and repayment history, among other eligibility requirements, before determining the loan quantum. Personal loans are generally unsecured, which also restricts the loan amount availability.
If you need a substantial amount of funds for a specific shop like a loan for an electrician’s shop, you can consider mortgaging an immovable property to raise such finance. For example, if you own a house or any other fixed asset, you can mortgage it to the lender and avail a high-value loan against it. Such credit comes with longer tenures, ranging up to 20 years in some cases.
You must make loan repayments in time and pay off the total liability by the tenor’s end to release your asset from the mortgage.
How to Apply for Shop Loans?
Whether you want to use a loan for renovation of a shop or to invest in a new outlet, you need to follow specific steps to complete an online application process. Make sure you follow these steps listed below –
- Step 1 – Visit the lending institution’s official website or app.
- Step 2 – Check that you qualify all eligibility criteria related to advances like a loan for a pawn shop. Also, check the documents required to avail your preferred loans.
- Step 3 – Navigate to the loan application page.
- Step 4 – Fill up the online loan application form.
- Step 5 – Provide necessary documents.
- Step 6 – Submit your application after double-checking all information you provided.
That’s all you need to do! After successful completion, wait for a few days before receiving approval and disbursal of the advance.
What are the other alternatives when it comes to a loan for auto shop or any other outlet?
If you are looking for other borrowing alternatives that come with greater flexibility and simplified repayment options, you can consider a gold loan as well.
Gold Loan – An Alternative Source of High-Value Finance for Shop
Gold loans are hassle-free funding options ideal for individuals who own gold jewellery. The financing option offers an opportunity to utilise gold ornaments that you already possess to fund your various needs.
Additionally, unlike most other bank loans, a gold loan from Rupeek Fintech Private Limited is available without credit score checks.
Therefore, even if your CIBIL rating is low at present, you can still conveniently avail an advance for your shop like a loan for medical store against gold jewellery.
Reasons to Consider Gold Loans for Shop Purchase
The various features of gold loans that make them suitable for investing in your new shop include –
- Affordable interest rates
As a lender, you may be worried about the interest levied on your loan. With a gold loan, however, you can rest easy. Such loans charge low interest on the principal outstanding due to their secured nature of financing. Also, a short tenor means interest accrual for lesser time, thereby reducing your debt significantly. While these rates tend to differ from one lending institution to another, you can easily compare and determine the most affordable terms.
- Loan facility at your doorstep
Rupeek Fintech Private Limited is the first lender to offer gold loans at your doorstep. Rather than carrying your gold jewellery to the lender’s branch, which is an immensely risky prospect, you can sit back at home and wait for the loan manager to arrive at your house.
This loan manager will complete the valuation of gold at your house and collect it from you, leaving your home with the gold only when you receive the loan amount in your bank account.
- Safety for the gold ornament you pledge
Safety is the primary concern that may stop you from depositing your gold jewellery with a lender. Gold loan providers understand this concern, which is why they take extra precautionary measures to ensure security for your pledged items.
Thus, when handing over your gold to Rupeek’s representatives, the asset is carried in a GPS-trackable bag and is deposited at a partner bank branch located within 3 km of your home.
You can also rest easy with additional protection in the form of a free of cost insurance policy for your pledged gold. Therefore, it completely safeguards the borrower from any financial loss.
- Immediate disbursals
Most other forms of business credit take a few days to reach your bank account. Not gold loans, though! There is hardly any delay between gold loan approval and disbursal. Rupeek Fintech Private Limited guarantees disbursal of such loans quickly. From valuation to disbursal, it only takes 30 minutes for the funds to reach you. This accelerated process can be crucial when you require funds immediately as advances like loan for coffee shop or other selling outlets.
- Advantage of flexible repayment options
Rupeek, a renowned gold loan provider, offers several options when it comes to repaying gold loans. Apart from choosing the tenure as per your flexibility, you can also pick how to repay the interest and principal portions of the advance. If you are amid any financial constraint, you can defer repayment completely to the end of the loan tenure as well by opting for the bullet payment option.
Alternatively, you can opt for only interest payment every month as instalment. The principal sum, on the other hand, is deferred for repayment at the end of the loan tenure in this case.
- Highest loan to value or LTV
Gold loans from Rupeek command the highest LTV or loan to value ratio. LTV is the proportionate value of the loan per gram of gold that the lender can provide at maximum. Thus, depending on the gold that you can pledge, raising funds of high value is not a concern.
With the highest loan to value ratio (LTV), low interest rates and other attractive features, gold loans can be the perfect replacement for typical business advances, especially when availed from Rupeek Fintech Private Limited. Assess your typical funding requirements and determine the loan amount you need to avail for your shop. Also consider the value of gold available with you for pledge before applying.