If you are planning to become a trader or a shopkeeper and if you are in need of a business loan, you can acquire a business loan in the country at an affordable price. There are many banks, non-banking financial corporations (NBFCs), and micro finance institutions that provide business loans to small business owners as well as shopkeepers in order to promote the micro business sector. Whether you are looking for a secured loan or an unsecured loan, you can avail a good business loan for your trading activities. These loans are provided for retail shops as well as wholesale shops.
In India, small business owners do not have much access to financial assistance like large business owners. Over the past few years, many new unconventional business loans are being launched in order to help small business owners set up a business venture and take care of the activities efficiently.
Common types of small businesses operated by traders, vendors, and shopkeepers
- Provision stores/kirana stores/departmental stores
- Artisan activities
- Handicraft activities
- Small scale industries
- Textile sector
- Self-employment businesses
- Food product businesses, etc.
How to get a business loan if you are a trader or a shopkeeper
In India, you can apply for a business loan from multiple channels by following a few simple steps. One of the most proficient organisations is MUDRA that caters to small business needs. Let us take a look at some of the ways through which you can apply for a business loan from here:
Micro Units Development and Refinance Agency Ltd. (MUDRA)
MUDRA is a leading NBFC, which is managed by the public sector of the country. This organisation is responsible for offering economical financial assistance to NBFCs and micro-finance institutions. These organisations, in turn, offer loans to different micro, small, and medium enterprises (MSMEs) that badly require financial support. These MSMEs usually do not have access to traditional banking services due to their poor economic condition.
You can approach the institution for a MUDRA loan, which will help you establish your business venture and earn income gradually. This loan will also help you in sustaining your business.
Features of MUDRA loan
Some of the features of a MUDRA loan include:
- MUDRA loans are business loans that can be used by shopkeepers, traders, and vendors for setting up their venture conveniently.
- These loans can be taken to purchase superior-quality equipment for micro units. The equipment can be utilised for production and other activities of the business. Under this loan scheme, a business can receive a loan of up to Rs.10 lakh for buying machines and equipment.
- MUDRA also offers working capital loans via MUDRA cards to businesses.
- These loans also provide loans for transport vehicles that can be used by businesses. Whether you want a small goods transport vehicle, a passenger car, an auto rikshaw, a 3-wheeler, or a taxi, you can apply for a MUDRA loan for your transport vehicle.
Types of shops that can apply for a MUDRA loan
- Beauty parlours
- Tailoring shops
- Cycle shops
- Vehicle repair shops
- Medical shops/pharmacies
- Photocopy shops and DTP shops
- Courier agents
- Shops that earn income from non-farm activities
MUDRA loan for activities related to the textile sector
You can apply for a MUDRA loan if your business is involved in activities such as chikan work, khadi work, zardozi work, zari work, handloom, computerised embroidery, knitting, authentic embroidery, hand dyeing, powerloom, etc. MUDRA loans are provided even for manufacturing of accessories that can be used for furniture, vehicles, etc.
MUDRA loan for food products
You can take a MUDRA loan for activities related to making food items. If your business engages in operations such as making jelly, pickles, papads, sweets, jellies, biscuits, buns, bread, ice cream, ice, etc., then you can get a loan from MUDRA.
MUDRA loan for agricultural activities
You can take a MUDRA loan for different agricultural activities such as rearing, dairy, poultry, bee keeping, fishery, agro-processing, livestock, processing of food, etc. This loan scheme does not provide crop loans.
MUDRA offers a business loan of up to Rs.10 lakh to each individual or enterprise. MUDRA loans are typically provided to develop entrepreneurship in the country at a micro level. These loans are offered to promote small-scale entrepreneurs by helping them to attain financial independence and security.
Apart from MUDRA loans, one can apply for business loans for trading activities from other NBFCs that are registered with the Reserve Bank of India (RBI). It is very important to make sure that you apply for a business loan from a reliable institution in order to avoid any kind of complications in the future.
These small business loans help entrepreneurs in developing trading skills and expand their business operations effectively. They can also improve their financial knowledge without having to rely on others.
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