{"id":3685,"date":"2020-10-20T11:12:03","date_gmt":"2020-10-20T11:12:03","guid":{"rendered":"https:\/\/www.indifi.com\/blog\/?p=3685"},"modified":"2021-03-18T15:17:22","modified_gmt":"2021-03-18T15:17:22","slug":"seven-best-criteria-to-qualify-for-a-shop-loan","status":"publish","type":"post","link":"https:\/\/www.indifi.com\/blog\/seven-best-criteria-to-qualify-for-a-shop-loan\/","title":{"rendered":"Seven Best Criteria To Qualify For A Shop Loan"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"496\" height=\"300\" src=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2020\/10\/Shop-Loan-496x300.jpeg\" alt=\"Shop Loan\" class=\"wp-image-3686\" srcset=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2020\/10\/Shop-Loan-496x300.jpeg 496w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2020\/10\/Shop-Loan-768x464.jpeg 768w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2020\/10\/Shop-Loan-1536x929.jpeg 1536w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2020\/10\/Shop-Loan-870x526.jpeg 870w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2020\/10\/Shop-Loan.jpeg 2000w\" sizes=\"(max-width: 496px) 100vw, 496px\" \/><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_67_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.indifi.com\/blog\/seven-best-criteria-to-qualify-for-a-shop-loan\/#What_is_Shop_Loan\" title=\"What is Shop Loan?\">What is Shop Loan?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.indifi.com\/blog\/seven-best-criteria-to-qualify-for-a-shop-loan\/#How_is_Shop_Loan_or_a_Business_Loan_different_from_a_Home_Loan\" title=\"How is Shop Loan or a Business Loan different from a Home Loan?&nbsp;\">How is Shop Loan or a Business Loan different from a Home Loan?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.indifi.com\/blog\/seven-best-criteria-to-qualify-for-a-shop-loan\/#Check_your_eligibility_criteria_to_avail_a_Business_Loan_Shop_Loan\" title=\"Check your eligibility criteria to avail a Business Loan \/ Shop Loan\">Check your eligibility criteria to avail a Business Loan \/ Shop Loan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.indifi.com\/blog\/seven-best-criteria-to-qualify-for-a-shop-loan\/#Other_essential_requirements_that_you_need_to_know_%E2%80%93\" title=\"Other essential requirements that you need to know \u2013&nbsp;\">Other essential requirements that you need to know \u2013&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.indifi.com\/blog\/seven-best-criteria-to-qualify-for-a-shop-loan\/#Documentation_requirements\" title=\"Documentation requirements\">Documentation requirements<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Shop_Loan\"><\/span>What is Shop Loan?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In our country, despite the mass acceptance of digitization and online shopping, a large section of consumers still believe in going to the shops to buy groceries, clothes and other consumer durable products. Therefore, it&#8217;s no wonder that this sector continues to boom. With a lot of potential in this area, entrepreneurs are looking for suitable business opportunities in small businesses. Hence the market demand for Business Loans \/ Shop Loans is gaining popularity. So, if you are thinking of opening a new shop or planning to renovate and refurbish the existing premise to grow your business, it would be prudent to understand the criteria for seeking a Business Loan \/ Shop Loan before applying for one.<\/p>\n\n\n\n<p>Also Read: <a href=\"https:\/\/www.indifi.com\/blog\/how-to-set-up-invoice-discounting-for-your-retail-shop\/\" target=\"_blank\" rel=\"noreferrer noopener\">How To Set Up Invoice Discounting For Your Retail Shop<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_is_Shop_Loan_or_a_Business_Loan_different_from_a_Home_Loan\"><\/span>How is Shop Loan or a Business Loan different from a Home Loan?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Before discussing the Criteria for a Business Loan \/ Shop Loan, let us understand the difference between a Business Loan \/ Shop Loan and a Home Loan. It is a known fact that consumers are knowledgeable in the Home Loan market, and there is a lot of awareness on it. Getting a housing loan is more comfortable, as the loan the approval and sanctions happen against collateral security provided by the borrower. But getting a Shop Loan or <a href=\"https:\/\/www.indifi.com\/business-loan\" target=\"_blank\" rel=\"noreferrer noopener\">Business Loan<\/a> can be complicated, as it involves many procedures, and there is not much awareness on this subject.\u00a0<\/p>\n\n\n\n<p>Under a Business Loan \/ Shop Loan, there are bouquets of products available to suit your needs. Banks and large financial institutions grant business loans to small businesses based on collateral security. What about a small business who does not have adequate capital, but is confident and has the potential to be a successful businessman? Well, you need not worry!!! There are companies like Indifi who believe in making small businesses with potential growth, by offering Shop Loans or Business Loans based on their creditworthiness and minimum documentation<strong>.&nbsp;<\/strong><\/p>\n\n\n\n<p>With different interest rates and flexible repayment options, Business Loans \/ Shop Loans are becoming an attractive proposition to the business owners. The loans get processed within the fastest turnaround time, and disbursals happen within 24 hours if the creditworthiness of the potential client and past and present performance of their business meets the required criteria.&nbsp;<\/p>\n\n\n\n<p>Also Read: <a href=\"https:\/\/www.indifi.com\/blog\/how-to-get-items-at-the-best-rates-for-your-kirana-shops\/\" target=\"_blank\" rel=\"noreferrer noopener\">How To Get Items At The Best Rates For Your Kirana Shops<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Check_your_eligibility_criteria_to_avail_a_Business_Loan_Shop_Loan\"><\/span>Check your eligibility criteria to avail a Business Loan \/ Shop Loan<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>While many criteria are required for availing a Business Loan \/ Shop Loan, I am listing down top seven, which in my opinion hold a lot of weightage towards approval and disbursal of loan.&nbsp;<\/p>\n\n\n\n<ol><li>Credit score and credit history is dependent on your existing loans&#8217; repayment history. Timely repayment of loans increases your credit score, leading to increased eligibility.<\/li><li>The lender may ask you for your document proofs, and financial records evidence like income tax returns, bank statements, and financial statements. Therefore, ensure that it is kept ready.<\/li><li>A healthy Business plan is one of the most vital documents to avail a Business Loan or a Shop Loan. You need to ensure \u2013&nbsp;<\/li><\/ol>\n\n\n\n<ol start=\"4\"><li>An adequately documented Business plan, as this will be a deciding factor for evaluation and acceptance of your Business loan\/ Shop Loan request.<\/li><li>It should include a financial plan for the next three to five years with profitability indicators.<\/li><li>LTV (Loan to Value) Ratio is a measurement of the value of property vis a vis the size of the loan. The financier will decide to lend a percentage of amounts of the LTV.<\/li><li>DSCR (Debt Service Coverage Ratio) helps in gauging your capacity of repayment of the loan after covering all other expenses. Acceptable scores can range from 1 to 1.25.<\/li><li>NOI (Net Operating Income) determines the actual requirement of the Business Loan \/ Shop Loan. The higher the net operating income, the better it is for you.&nbsp;<\/li><li>The lender always checks the credibility of a person, businessman or an entrepreneur. Management effectiveness is also an important criterion. This medium will help the lender in understanding the repayment capacity of the borrower.<\/li><\/ol>\n\n\n\n<p>Also Read: <a href=\"https:\/\/www.indifi.com\/blog\/how-kirana-shops-are-proving-to-be-the-backbone-of-the-economy\/\" target=\"_blank\" rel=\"noreferrer noopener\">How Kirana Shops Are Proving To Be The Backbone Of The Economy<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Other_essential_requirements_that_you_need_to_know_%E2%80%93\"><\/span>Other essential requirements that you need to know \u2013&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol><li>Minimum turnover of the shop should be more than INR 10 lakhs.<\/li><li>ITR filed by the shop owner in the last 12 months should be more than INR 2.5 lakhs.<\/li><li>The shop and residence of the shop owner should not be the same.<\/li><li>The shop must be operational for the previous two years.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documentation_requirements\"><\/span>Documentation requirements<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol><li>PAN card and photographer of the shop owner.<\/li><li>Bank statement of the shop accounts for the last 12 years.<\/li><li>ITR filed for the last three years.<\/li><li>Shop proof.<\/li><li>Residence address proof.<\/li><\/ol>\n\n\n\n<p>Also Read: <a href=\"https:\/\/www.indifi.com\/blog\/tips-for-better-offers-to-give-to-customers-for-retail-shops\/\" target=\"_blank\" rel=\"noreferrer noopener\">Tips For Better Offers To Give To Customers For Retail Shops<\/a><\/p>\n\n\n\n<p>For further details on eligibility and documentation requirements for a Business Loan \/ Shop Loan, please check the website &#8211; <a href=\"https:\/\/www.indifi.com\">www.indifi.com<\/a><\/p>\n\n\n\n<p>Let&#8217;s conclude by saying&nbsp;Future is bright for small businesses, especially shop owners and retail business because your dreams can now be culminated into growth, by availing Business Loans \/ Shop Loans without security.<strong> <\/strong>Please check the website <a href=\"https:\/\/www.indifi.com\">www.indifi.com<\/a> for specific document requirements for availing loan through Indifi.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-background has-light-green-cyan-background-color\" href=\"https:\/\/www.indifi.com\/business-loan-for-retail-store\" target=\"_blank\" rel=\"noreferrer noopener\">Apply For Shop Loan<\/a><\/div>\n<\/div>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is Shop Loan? In our country, despite the mass acceptance of digitization and online shopping, a large section of consumers still believe in going to the shops to buy groceries, clothes and other consumer durable products. Therefore, it&#8217;s no wonder that this sector continues to boom. With a lot of potential in this area, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3686,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[141],"tags":[286],"_links":{"self":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/3685"}],"collection":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/comments?post=3685"}],"version-history":[{"count":2,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/3685\/revisions"}],"predecessor-version":[{"id":4057,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/3685\/revisions\/4057"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media\/3686"}],"wp:attachment":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media?parent=3685"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/categories?post=3685"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/tags?post=3685"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}