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Business loan for a grocery store is a popular loan product of banks and financial institutions across India. This loan can help entrepreneurs start a grocery store, buy inventory, purchase equipment, etc. You can even renovate your existing grocery store into a supermarket with the loan amount.

Business loan for a grocery store in India usually comes under a small business loan or an MSME loan. Grocery loan policies are usually extended to entrepreneurs under the small business loan umbrella and the loan repayment and interest is tailored to the needs of the loan applicant. These are usually syndicated loans that can be easily paid off.

Features of a business loan for a grocery store

A small business loan for a grocery store is usually a short-term loan sanctioned for small loan amounts. The main aim of this loan product is to help grocery store owners get easy credit facilities tailored to their specific needs. Have a look at the common features of grocery store business loan disbursed by financial institutions in India:

  • Unsecured: These loans are usually sanctioned without the need for collateral.
  • Short repayment tenure: They accompany a short tenure typically from 12 months to 36 months
  • Quick approval: These are under the category of small business loans and have quick approval time.
  • Minimal documentation: Banks and Financial Institutions only require minimal documentation like KYC and business details for sanctioning a business loan for a grocery store.

Also read: Self-employed business loan in India: Who is eligible, how to apply online


Here are some of the eligibility requirements for a business loan for a grocery store:

  • The age of the applicant must be above 18
  • The applicant must be an Indian citizen
  • Must possess the minimum credit score as per lender norms

Documents required

Have a look the documents that will have to submitted along with the application:

  • PAN card
  • Aadhaar card
  • Proof of income
  • Income tax returns
  • Bank statements for the last six months

How to apply for a business loan for grocery store?

The first step to apply would be to enquire about a business loan for a grocery store at different banks and financial institutions. For institutions offering loan products that fit your needs, ask them for more details of the loan.

Carefully read all the terms and conditions of the loan. After choosing a loan product contact the lender to send you an application form. Submit the application form with the relevant documents.

Also read: How to get ₹ 5 lakh business loan without collateral? Interest rates, documents

Who provides grocery store business loans?

As mentioned before, business loan for grocery stores is extended under the umbrella of MSME loans. Have a look at different MSME loan products and their interest rates from different lenders:

Tata Capital MSME Loan: 15% onwards

Business Loan

State Bank of India (SBI) MSME loan interest rate: 9.65% onwards

PNB MSME loan interest rate: 9.60% onwards

HDFC Bank Business loan interest rate: 15.75% onwards

Indian Bank MSME loan interest rate: 10.15% onwards

Union Bank MSME loan interest rate: 9.05% onwards

Bank of India MSME loan interest rate: 9.10% onwards

Note: It is recommended to check the loan interest rate with the respective banks as interest rates are subject to change.

Also read: Business loan on degree certificate

MUDRA loan for grocery shops

You can also apply to government schemes to kickstart your grocery businesses or expand it. One of the most popular government schemes for shopkeepers and traders is the MUDRA loan under the PMMY scheme.

MUDRA loan is a loan scheme for MSMEs under the PMMY scheme introduced by the Government of India. MSMEs can get loans ranging from ₹50000 to ₹10 Lakh under the scheme. It is a loan scheme set up by the GoI through MUDRA (Micro Units Development & Refinance Agency), which is a subsidiary of the Small Industries Development Bank of India (SIDBI).

According to the offerings page on the MUDRA website, “Financial support for on lending to individuals for running their shops/trading & business activities/service enterprises and non-farm income generating activities with beneficiary loan size of up to ₹10 Lakh per enterprise/borrower.” This means that you can get a small business loan under the PMMY scheme for a grocery store.

Eligibility for MUDRA loan

  • Age of the applicant: The applicant must not be a minor. The age limit for MUDRA loan is from 18 to 65.
  • Citizenship: The applicant must be an Indian citizen
  • Credit requirement: Credit requirements should be ₹10 lakh and below
  • Size of entities: The companies should be officially classified as MSME with valid MSME registration
  • Loan defaults: The applicant must have no prior loan defaults

Documents required for MUDRA loans

To apply for MUDRA loans these are the documents required:

  • Udyam registration certificate
  • Shop and establishment registration certificate
  • Identity proof including Aadhar card and PAN card
  • Income tax returns of the past six months
  • Audited balance sheets and profit and loss accounts of the company

How to apply for a MUDRA loan?

Government of India invited financial institutions across the country to participate in MSME lending under the scheme. Many MFIs, NBFCs, public and private sector banks are a part of this loan scheme. Simply approach your nearest bank branch to check if they are extending the loan. You can contact them via phone as well.

You can also try online lenders who will be able to offer you tailored products for your specific needs. Tata nexarc Business Loans can give you access to different loan products from lenders across the country. You only need to fill in a single application and our platform will match your requirements to a list of products that will suit you the most.

Also read: ₹25 Lakh business loan: Check documents, how to get it instantly

Priyanka Babu

Priyanka is a seasoned content marketing professional with more than 6 years of experience crafting various forms of business and technology sector content. Her insightful writing tackles critical issues faced by small-scale manufacturing businesses. Priyanka’s clear and concise communication empowers businesses to make informed decisions and thrive in today’s dynamic business environment.