How Beneficial Are Restaurant Loans?

Individuals will receive countless benefits from the restaurant loans, and some of these benefits are:

• Individuals will receive a restaurant business loan for up to INR 20 lakhs.
• The loan processing work is extremely fast, and the documents and application work is conducted online.
• The loan amount gets deposited to the borrower's account within three days.
• No need to place collateral for the restaurant loan.
• One will not find any hidden costs, and individuals will be told about the charges and fees at the beginning.
• Interest rates charged for restaurant loans are fair and differ greatly from one case to another once the applicant's financial history is considered.
• One will come across countless loan tenures and get to opt for the one based on their needs.
• Individuals will get options to pay off the loan, either through bi-weekly or monthly options.
• Applying for restaurant business loans online will enable the applicant to make sure that he/she has complete ownership of that loan. They don't need to give up on their assets.

The Eligibility Criteria for Restaurant Loans

Individuals who wish to apply for restaurant loans must fulfill the following eligibility criteria:

• When taking a loan for a current restaurant, the restaurant should be in business for six months.
• Restaurants that are conducting operations must have a turnover of INR 90,000 during the past three months when preceding the application for the loan.
• A restaurant business must not stay under the backlisted list for small business loans.
• The restaurant business should be located at a proper location.

Documents Needed for the Restaurant Loans

When applying for restaurant loans, one needs to submit certain documents to get their loans approved. These documents are:

• The bank statement of the business for the past six months
• Applicant's address proof, such as the driver's license, electricity bills, Aadhaar card, etc.
• Applicant's ID proof, such as ID card, etc.
• A document of the PAN card of the restaurant.

Before submitting these documents, please check them properly to make sure they are correct so that one can avoid loan rejections from taking place.

What are the Charges and Fees?

There are some charges and fees of the MSME loan for a restaurant that every applicant must provide. Here is a table to give a clear understanding:

Things to Secure When Opting for the Restaurant Loan

Before you apply for restaurant financing, there are some things you must know. These are:

Build a Business Entity

You need to decide the type of business you want to run. That way, you can decide what kind of business you'd like to opt for and the type of investment it needs. Based on the restaurant's owner and the format, one must register their respective business in:

• Private Limited
• Private Partnership
• Sole Proprietorship

Once the registration work is done, you will get approval to run a company, and you should create a business plan.

Create a Business Plan

When it comes to making a business plan, it might not be that easy. That's why you should consult this matter with an expert when making an effective business plan. The business plan should include the financial forecast, the business model, the mission, and the vision.

According to the business plan, the bank will decide whether they should approve a loan application. Individual documents must contain information on the type of business they're running, and it's one of the vital documents that one needs to take care of.

Various Kinds of Restaurant Loans

One will come across many types of restaurant loans provided by countless banks. Let's take a peek at a few of them:

• One will come across loans, which he/she can secure with machinery, real estate, and even inventory as collateral.
• Opting for capital loans, which are ideal for people who need immediate funds, but they come with high-interest rates and have to be paid back in less than a year.
• Term loans are ideal for individuals who're into big investments. These loans come with a duration between 1 year to 5 years.

When applying for any type of restaurant loan, the guarantor should be present during the loan application process and when providing collateral security.

Get a Restaurant Loan from Piramal Finance Today!

Piramal Finance carries a reputation for being one of the leading loan providers in the country. We do not just provide loans for homes but also offer loans for businesses, including restaurants.

Our customers can apply for a restaurant loan based on their needs, and we will make sure that they are satisfied with our services. Our team of professionals will be available 24x7 to answer questions and offer guidance regarding loans. You can contact us today and receive the best business loan for running a restaurant.