Setting Up Your Kirana store? However, opening such as store needs capital investment. You need to apply for a micro, small or medium enterprise (MSME) loan to start your own grocery store. And, while doing so, it is important to avail such loans at the best interest rates and repay them with ease. You need to find the answer to “which business loans offer the best interest rate for Kirana shop?”
However, running a grocery store has average profit margins, and you’ll always need to reinvest your business profits into restocking activities. Hence, it is important to get the best interest rate on a business loan used for setting up your Kirana store. The best interest rate will help you avoid falling into a debt trap and will also ensure that your Kirana business stays afloat.
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How to get best interest rate for grocery store business loan?
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The following tips can help you get a business loan for your Kirana shop with the lowest interest rate. With the help of these tips, opening a grocery store in India will become less of a hurdle for middle-class and lower-middle-class entrepreneurs.
Compare banks and offers
To find the best interest rate for a grocery store loan, you need to research a lot. With the help of online blogs, forums, and websites, the answer to “how to find the best interest rate for Kirana store loans?” becomes a lot easier. There are several trusted websites which compare the interest rates of different banks. These comparisons give you a snapshot of the current landscape for SME loans in your city/state. You also get to know the ongoing offers of small business loans. Such websites also compare loan schemes of private banks with multinational and national banks. They also help you find the best government loans with low-interest rates for SMEs.
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Secure your assets as collaterals
After comparing the interest rates and checking out the offers, you can also choose to lower the rates further. If you have any physical assets under your ownership, you can enlist them as a “collateral security” for the loan. Since the loan amount is small, you don’t need to have a sizeable asset to keep in as security. This step improves the trust factor between you and the bank. As a result, the bank considers lowering your interest rate.
Get a short-term loan
One of the most common and effective ways of getting the best interest rates is lowering the tenure. If you can repay the loan amount in less than a year, then your loan can be drawn for the same tenure. The shorter the loan tenure, the lower the interest rates. If you can repay the loan easily, go for the SME business loan with the shortest tenure being offered by the bank. You can also apply for fintech startups that are growingly supporting small businesses in India. Such organizations can provide your deeper knowledge of ways to lower the interest rates of your loans. In addition to this, they can also help your grocery store business become a success story with GST advantages and other tax benefits.
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Try for maximum down-payments
While running a Kirana shop, you should not be troubled by the interests of the EMIs. If the monthly profits from your grocery store get expended in the installments and the high-interest rates, then you won’t be able to repay such loans and still keep the grocery store running. Hence, it is advised to have some percentage of the loan amount already paid-off in the beginning. According to your financial situation and repayment capacity, you can provide as much downpayment as possible while getting an SME business loan for your grocery store. This can lower the interest rates considerably and give you some ease with the installments.
Apply for government loan schemes
If you’re looking for instant business loans to open a grocery shop, then there are several government schemes that can support you. In India, the PMRY loan scheme is the best SME loan that the government is offering. It has low-interest rates and flexible tenures. Such government-backed loans will not stress you out financially. You can repay the grocery store loans seamlessly if they are drawn from government schemes and offers. You can also learn about the tax benefits of such schemes for your Kirana business.
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If you’re looking for instant business loans to open a grocery shop, then there are several government schemes that can support you. In India, the PMRY loan scheme is the best SME loan that the government is offering. It has low-interest rates and flexible tenures. Such government-backed loans will not stress you out financially. You can repay the grocery store loans seamlessly if they are drawn from government schemes and offers. You can also learn about the tax benefits of such schemes for your Kirana business.
We can help you get an SME loan for your grocery store business at the best interest rate at Indifi. Indifi helps small businesses around India by serving as a technology platform to provide access to new financing opportunities. With Indifi, you can find an instant loan to help run your Kirana store today.
