How to get a loan for a new shop?

If you’re contemplating starting a new shop and need a business loan in India, first make sure that you’ve registered your business. Here are some key steps to get a loan for a new shop:

• Be ready with key documents, such as the shop establishment certification, GST registration, and KYC documents. The lenders will be looking at your business plan, your anticipated cash flows, and your own personal finances. Since a new shop will not have financial history, this matters - and your own credit score and your experience in that trade would be especially relevant.
• Spend time working out business plans demonstrating your anticipated sales, expected expenses, and some information about your market. This demonstrates to the lenders that you have considered your venture. If you intend to borrow bigger amounts, you may be asked to provide collateral security; however, you can find plenty of government schemes and micro loan options that do not require this, especially for first time entrepreneur store owners.
• When you make an application you'll need to provide proof of identity, proof of address, ownership of your business, along with certain up-to-date bank account statements. Many lenders now allow you to complete the application online, which can speed things up, and allows you to check whether or not you will be accepted right away.

There are government-related loans that may have flexible eligibility criteria or lower interest rates than traditional lending. But always remember that you understand the terms and conditions, repayment schedule, and any fees that you may have to incur with them.

Following these steps will give you the best chance of getting the funding you need to get your shop off the ground and operational.