Establishing a business of your own is a dream of many. Regardless of the size, labour force, or capital invested. No matter how big or small your business is, starting a business from scratch is not as simple as it sounds and can cost a good amount.

What can be a solution when the determination to grow the business is strong but lacks financial support? The answer is simple, loans. All you need is MSME loans.

What is an MSME Loan?

As the name suggests, an MSME loan or Micro, Small, and Medium Enterprise loan is a loan for enterprises that do not have a very large capital base. Unlike bigger businesses that have an advantage of exposure to big loans and legal help from various sources, small businesses usually find it very difficult to get credit as their returns are a lot less than the bigger enterprises. 

The duration of the MSME loan may vary from bank to bank or from company to company. The interest rate is also considerably low as the institutes understand the financial situation of the business owner and only have manageable expectancy.

Unlike shop loans taken for expanding businesses, MSME loans can be used to boost your returns with minimal payment periodically. These loans give you financial stability and enable you to actualize your ideas for your business.

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How to grow your Kirana business with MSME Loan?

We are all aware of the massive disruption that the Covid-19 pandemic has caused. With the sale of all luxury goods put at the stall because of the apprehension of contracting the deadly virus, the only goods being increasingly sold and bought are the everyday essentials, precisely groceries. 

Grocery shopping in Kirana stores during the lockdown has witnessed a 39% growth as per research. The Government has realized the worth and necessity for the same, enabling the digitalization of several Kirana stores and giving a heads-up to JioMart that wished to connect consumers with neighbourhood Kirana stores. 

When such benefits have fallen into your lap, this is the best time to capitalize on the situation by starting your own Kirana business with the help of MSME loans.

Why take an MSME loan for your Kirana business?

Several companies offer different policies and loans that differ in their benefits and requirements. With so much information on your plate, you would wonder why one must prefer an MSME loan over the others. The reasons are as follows:


These loans are specifically created to help small businesses. As a result, the interest rates are crafted based on the ability of the business owner to repay the amount per the situation of their business in the market. 

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Less documentation

One of the major advantages of opting for this loan is the minimal documentation requirements. Unlike financial statements, property deeds, and other complex documents that a business loan may require, an MSME loan requires only easily available documents such as bank statements and income tax filings. 

Flexible tenure

The term of these loans is completely based on the type of enterprise and is not very stringent. One can also choose to decide from a range of repayment options as per their financial capability. 

No prepayment charges

These loans do not have a prepayment charge if they wish to repay the full debt before their term officially ends. You will save on interest charges if you wish for payment closure with no extra amount to do so. 

Where to get an MSME loan from?

To take up this loan, we recommend ZipLoan. They are technology-driven digital lenders. They address the problems of availing access to formal credit of the Small and Medium Enterprises. This is done by customizing the loan sourcing and simplifying the process for its target customer base. 

They offer business loans of Rs. 1- 7.5 lakhs at minimal documentation, basic eligibility criteria, and no prepayment charges. With their presence in 6 cities, they process your application in 24 hours and disburse the loan amount in as quick as three days. 

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By using the benefits and opportunities given by the Government to essential business services in the best way possible, you could optimize your profits and actualize your dreams.

Kirana Shop FAQs

Is Kirana store profitable?

Yes, if you are opening Kirana shop at your own place. The average annual operating profit dives by 34.7% to Rs 76,000—barely enough to sustain a family of four in Tier 1 or Tier 2 cities.

How do I start a Kirana business?

Check out these easy steps and effective methods on how to start a Kirana shop.

Step 1- Build A Business Plan
Step 2- Choose The Location
Step 3- Know Your Customers
Step 4- Calculate Your Investments
Step 5- Digitise Your Store
Step 6- Get All Licenses/Permits
Step 7- The Weekend Gimmick

What is the profit margin in Kirana store?

The profit margin for the grocery stores in India ranges from 2% to 20%.

Is a grocery store a good business?

Selling grocery items is one of the most profitable ventures of all times. In fact, this is a business which can be started from almost anywhere and has good earning potential.

Is Fssai license mandatory for Kirana store?

Grocery Store food license is mandatory to obtain.

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