Running a small shop or kirana store in India requires continuous working capital. Whether it is purchasing inventory, expanding your store, or managing daily expenses, a business loan can help shop owners grow their business without financial stress.
In this guide, you will learn everything about business loans for small shop and kirana store owners in India, including eligibility, documents required, interest rates, and how to apply in 2026.
What is a Business Loan for Small Shop Owners?
A business loan for small shop or kirana store owners is a financial product designed to provide funds for day-to-day business needs. These loans are usually offered by banks, NBFCs, and digital lenders without requiring heavy documentation.
Shop owners can use the loan amount for:
- Buying stock and inventory
- Shop renovation or expansion
- Managing working capital
- Paying suppliers
Who Can Apply for a Business Loan?
The following individuals can apply for a business loan in India:
- Kirana store owners
- Grocery shop owners
- Small retail shop owners
- Medical shop owners
- Stationery and provision store owners
Both new and existing shop owners can apply depending on the lender’s policy.
Eligibility Criteria for Business Loan for Kirana Store
Most lenders follow these basic eligibility conditions:
- Age between 21 to 65 years
- Indian citizen
- Shop operational for at least 6 months to 1 year
- Regular business income
- Active bank account
Some NBFCs may offer loans even if the credit score is low.
Documents Required for Business Loan
To apply for a business loan for small shop owners, you generally need:
- Aadhaar Card
- PAN Card
- Shop license or business proof
- Bank statements (last 6–12 months)
- Passport size photograph
Digital lenders may approve loans with minimal documentation.
Types of Business Loans for Shop Owners
Working Capital Loan
Used to manage daily expenses such as inventory purchase and supplier payments.
Inventory Loan
Ideal for kirana store owners who need funds to buy bulk stock.
Government Business Loan
Government-backed schemes offer loans with lower interest rates for small businesses.
Interest Rates & Charges
Business loan interest rates depend on the lender and business profile:
- Interest rate: 11% to 30% per annum
- Processing fee: 1% to 3%
- Loan tenure: 12 months to 5 years
Always check loan terms before accepting the offer.
Can Kirana Store Owners Get Loan with Low CIBIL Score?
Yes, some NBFCs and digital lenders provide business loans even with a low or no CIBIL score. They evaluate:
- Monthly business turnover
- Bank transaction history
- Shop stability
If immediate funds are required, you can also explore a personal loan without CIBIL score as a short-term solution.
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Benefits of Business Loan for Small Shop Owners
- No collateral required in many cases
- Fast approval and disbursal
- Flexible repayment options
- Helps in business growth and stability
Tips to Improve Loan Approval Chances
- Maintain regular bank transactions
- Avoid multiple loan applications at once
- Keep basic business documents ready
- Repay existing loans on time
FAQs – Business Loan for Kirana Store Owners
How much loan can a shop owner get?
Loan amount depends on business income and lender policies.
Is GST mandatory for business loan?
Not always. Many small shop owners can apply without GST.
Can I apply online for business loan?
Yes, many lenders offer fully online application and approval.
Disclaimer
Loan approval depends on the lender’s internal policies. Interest rates and terms may vary. Always verify details on the official lender website before applying.