In our first post, where we talked about starting a restaurant from scratch, there was a mention of funding. Now you might have made many plans for your beautiful restaurant, but you need funding for it, that shouldn’t come off as a surprise to you. Having adequate amount of funding, you will have one thing less to worry about in pursuit of your prosperous business. This article is about the conventional way of securing funding for your restaurant — taking a loan from the bank.
There is a ‘Credit Guarantee Fund Trust for Micro and Small Enterprises’ (CGTMSE). This scheme covers up to 85% of the default amount based on the amount (there are different brackets for this). But getting a loan under this scheme often takes on a process, which we have highlighted below.
Step 1: Register your business
Before anything, you should register your business. There are multiple ways in which you can do it, you can register as a private limited or a sole partnership, among other choices.
Step 2: Make a business plan
You will need to have a solid business plan to get loan approval. This can make or break the deal for the loan approval, so spend good amount of time on this. Your plan should have a vision, mission, SWOT analysis, financial projections.
Step 3: Apply
You can then apply for loans under this scheme at various banks. You will need to fill out forms (applicant profile), and have copies of business models, previous year’s tax returns, Aadhar card, PAN card and any other information that the banks requests.

This is a general overview of the process for obtaining a bank loan under this scheme. SelectDine is a company which helps entrepreneurs set up a new restaurant or help existing brands expand through franchising. They also help you build a ‘project report’, which incorporates a ‘business model’ into it. Feel free to reach out to them for these services!
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