Skip to main content

How To Get a Loan From a Bank To Start a Restaurant in India

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!

Comments

Popular posts from this blog

Own Chai Sutta Bar in 15 lakhs

Chai Sutta Bar is a premium brand which is currently franchising in India. Chai Sutta Bar headquartered in Indore was established in 2016 and since then operates twenty-six outlets across India.Chai Sutta Bar has various types of outlets that you can open if you choose to invest, which includes both sit-down and quick service models. The brand additionally offers operating manuals, expert guidance from head office, billing systems, and on-field assistance for the franchisee. Offering a high profit margin at a low investment cost along with excellent support, you can own a Chai Sutta Bar in 15 lakhs, should you choose to invest. To know more about this brand’s investment details, visit our website to know more .

How to Safeguard Franchise Fraud

The case of buying, owning, and operating a franchise can seem quite compelling: You, at least in a sense, own your own business, but you are not alone during the operation. The product or service has already been fully developed; it's simply up to you to offer the product or service on your own terms. There are people out there offering fraudulent opportunities; and while you may think that it could never happen to you, fraudsters are getting more sophisticated in their methods of deception. What is Franchise Fraud? Common forms of franchise fraud include misleading and fraudulent sales practices used to entice prospective franchisees to purchase and invest in a franchise. Misleading sales tactics can come in many forms. One of the more common forms of fraud in the franchise arena is the making of false or misleading statements about projected financial performance. It is, in fact, unlawful for a franchiser to provide any representations of potential or actual financ

Restaurant Management Software For Your Business

Restaurant owners most of the time, have to contend with the daily grinds of running their businesses. Managing a restaurant is undoubtedly one of the most daunting tasks that an entrepreneur can undertake. Restaurant management involves lot processes that if done right, would ensure the smooth flow of the enterprise and even increased profits. However, doing all the hard work does not cut it when it comes to restaurant management. Many restaurants end up earning pretty much the same despite best efforts on the part of restaurateurs and managers. This is especially true for small restaurants. Many mom-and-pop operations still contend with the hassles of keeping up with the daily requirements of food service such as menu planning, order taking and inventory update. Fortunately, many technologies are being developed to aid restaurant owners in their everyday undertakings. These technologies take the form of devices and solutions designed to make restaurant owners’ lives a li