Business Loan

How to Run a Successful Supermarket with Business Loan?


Supermarkets have multiplied exponentially in almost every city in India. The reason for their rapid increase is the availability of goods along with the quality of service. They give you the best shopping experience with diverse options and discounted prices. So, from a customer’s perspective, a supermarket is the ideal place for buying different products.

However, from a business perspective, starting and running a supermarket can be tough and confusing without business funding. Especially if there is a shortage of funds, scaling the business becomes difficult. 

It is nearly impossible to manage everything with your savings.So opting for a business loan can make it easier for you. A business loan can provide you with a higher loan amount. You can use that money to invest in infrastructure, technology, equipment, hiring employees, etc. It can provide you with the financial leverage that you need to grow your business. 

This article will help you skim through the various aspects of starting a supermarket with a business loan. This article is all about business loans, their features, eligibility, and benefits, and using them to run a supermarket. 

What is a business loan, and what purpose does it serve? 

A business loan, as the name suggests, is the financial assistance you get from a lender to grow your business. The lender provides you with a desirable loan amount with the promise to return the money at a given rate of interest. The lender will give you a set period within which you are bound to repay the loan amount in the form of instalments. 

Many lending institutions provide unsecured business loans to borrowers. This means you don’t have to pledge your assets to get the loan amount disbursed. Many banks provide term and Flexi loans to customers to meet their commercial needs. All types of sole owners, self-employed individuals, shopkeepers, private companies, etc. can ask for a business loan in India. 

What are the features and benefits of going for a business loan in India? 

Whether it is a small business loan or one taken by a big firm, there are certain benefits to opting for it.

  1. Compelling interest rates:

Most lending institutions provide reasonable interest rates to customers on business loans. The sole reason for this is the cutthroat competition among different companies to get customers’ attention. The rate of interest on most business loans in India ranges between 10% and 25% per annum. 

  1. Flexible loan options:

Another striking advantage of applying for a business loan is the availability of flexible loan options. Different options give you the advantage of choosing the one that best suits your requirements. Out of the various loan options available to businesses, some of them are:

  1. Term Loans
  2. Start-up Loans
  3. Machinery loans, etc.
  1. Diverse usage:

Another benefit is that you have the liberty to use the business loan amount the way you want. Unlike many equity investors, you are not answerable to the banks and NBFCs regarding the usage of the money. 

  1. Quick disbursement:

Banks and NBFCs require minimal documentation and prefer quick disbursements to avoid unnecessary paperwork and delays. This helps you get started as soon as you apply for the loan amount. 

  1. Tax benefits:

In addition to the many benefits of a business loan, there are several tax benefits that you can avail of as per the guidelines of the Income Tax Act of 1961.

How to use a business loan to start and run a supermarket? 

There are various methods through which you can use a business loan to start and effectively run a supermarket. 

  1. Finding the right location:

Location plays a key role in deciding the success rate of any business. Having a location in an area that has access to the majority of the target customers is important. Due to the increasing prices of land and properties, finding a good location at night will be tough. So, a business loan can give you financial aid to find the right location. 

  1. Investing in inventory:

After deciding on the location, you have to focus on your inventory. Your inventory must be filled with all the goods that you are about to sell to your customers. Filling up an inventory requires huge finances, and a business loan can help you with that. 

  1. Funding, License, and Registration:

Before selling your products, you need to have proper registration and several licenses. And to fund that, you need a loan amount that includes various formalities and fees. 

  1. Financing technology:

As you are going to run a store, you need items like computers, billing machines, etc. And a business loan will provide you with the financing for that 

  1. Marketing and advertising:

Besides investing in the inventory, license, equipment, and infrastructure, you also need finance for marketing and advertising your store. A business loan will provide the money to market and advertise special discounts, offers, etc. 

Summing it up

A business loan has several benefits, including low rates of interest, flexibility in usage, better loan options, and other tax benefits. So you should also know about the requirements that are required to apply for it. To run a supermarket, you need a constant flow of cash and regular investments to grow and flourish. Business loans can help you gain better profits from your business without causing much financial distress. 

Want to know more about business loans? Visit Piramal Finance. Not only about loans, but it also has highly engaging content on different investment schemes, government subsidies, financing tips, etc.