Introduction
Starting or expanding a shop in 2026 may require financial support. Fortunately, there are several ways for small business owners in India to secure a loan — from government schemes to bank/business loans — with easier eligibility and competitive interest rates.
Below we explain the step-by-step options, requirements, and application process so you can successfully get a loan for your shop.
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Types of Loans Available for Shop Owners
There are mainly two types of loans you can consider:
A. Government-Backed Schemes
Government schemes support small entrepreneurs with collateral-free or low-interest business loans.
B. Bank & NBFC Business Loans
Banks and Non-Banking Financial Companies (NBFCs) offer formal business loans based on your financial profile.
2. Government Loan Schemes You Can Apply For
A. Pradhan Mantri Mudra Yojana (PMMY)
One of the most popular schemes for small businesses:
- Shishu Loan: Up to ₹50,000
- Kishore Loan: ₹50,000 – ₹5,00,000
- Tarun Loan: ₹5,00,000 – ₹10,00,000
- Tarun Plus: Up to ₹20,00,000 (newer expansion that allows higher amounts under certain conditions)
Advantages:
- No collateral required
- Designed specifically for small business owners and shopkeepers
- Available through partner banks and financial institutions across India
How to Apply:
Apply online via the official portals like Jan Samarth Portal or by visiting a bank that participates in PMMY.
B. MSME Loan Scheme
MSME (Micro, Small & Medium Enterprises) loans help in business expansion as well as starting a shop.
- Can provide up to ₹20 lakh or more depending on eligibility
- Interest rates usually competitive (lower for registered MSMEs)
- Faster processing with proper documents like Udyam Registration.
C. Other Schemes (Government & Bank-Based)
- Stand-Up India Scheme: For women and SC/ST entrepreneurs — up to ₹1 crore
- CGTMSE (Credit Guarantee Trust for Micro and Small Enterprises): Collateral-free loans up to ₹2 crore
- Various bank-specific Mudra loans (e.g., SBI, Canara Bank) with easy criteria
3. Eligibility Criteria
While specific eligibility varies by scheme, common requirements include:
✔ Applicant must be an Indian citizen
✔ Age generally between 18 and 65 years
✔ Good credit history (CIBIL score helps)
✔ Proper business plan or shop purpose
✔ Bank account and ID/address documents
Many schemes do not require collateral — especially Mudra and MSME schemes — making it easier for small shop owners to qualify.
4.Documents Required to Get a Shop Loan
While applying, you typically need:
- Identity Proof: Aadhaar / PAN
- Address Proof: Utility bill / rent agreement
- Business Proof: GST / Udyam Registration (if applicable)
- Bank Account Details
- Business Plan or Purpose Statement.
5. How to Apply (Step-by-Step)
A. Online Application
- Visit official government portal (e.g., Jan Samarth).
- Choose the loan scheme (PMMY / MSME).
- Fill in your details and upload documents.
- Submit and track the application.
B. Offline via Bank or NBFC
- Visit your chosen bank branch (like SBI, Canara Bank, etc.).
- Meet with the loan officer.
- Submit KYC and business documents.
- Wait for verification and approval.
Tip: Some banks now offer online tracking and faster digital verification.
Conclusion
Getting a loan for a shop in 2026 is quite feasible if you know the right schemes and follow the proper process. Government-backed loans such as Mudra Loan and MSME Loan make it easier for small business owners to kick-start their venture without heavy collateral. Banks and NBFCs can further provide additional funds based on credit profile and business needs.
🔹 FAQs
Q1. Can I get a shop loan without collateral in 2026?
Yes, under Mudra and CGTMSE schemes, collateral-free loans are available.
Q2. What is the best government loan for shop owners?
Pradhan Mantri Mudra Yojana is the most popular option.
Q3. Is GST mandatory for shop loan?
Not mandatory for small loans, but helpful for higher amounts.
