What Are the Requirements to Qualify for a Shop Loan?

If you’re looking to qualify for a shop loan, there are typical eligibility requirements laid out by banks and Non-banking Financial Companies (NBFCs). Additionally, there are a few documentation requirements. Here is a typical breakdown:

Types of Businesses That Can Apply

• Partnerships, sole proprietorships, private limited companies, public limited companies, and LLPs (Limited Liability Partnerships) are eligible to apply.

Age Requirement

• Typically, you must be at least 21 years old and not older than 70 years old at the time of loan maturity.
  Experience
• Your business should ideally have been running for at least 3 years. This shows that your shop is stable and has a track record.
• If you’re self-employed or are a business owner, having at least 3 years of experience is typically required.

Documents Needed

• Banks or NBFCs usually need 6 months of bank statements to evaluate your shop's finances.
• You may typically be required to provide business registration documents to verify legal status.
• You may typically need PAN cards for both your business and yourself for identification and credit check.
• A recent selfie is usually required as part of the Know Your Customer (KYC) process.

These requirements generally ensure that the loan provider evaluates your credibility and your shop's operational viability before approving the loan.