In a country as vast as ours with a population of over 133 crores, finding petrol pumps at convenient locations is crucial. Although the petrol pump business is lucrative, it demands a significant amount of capital investment. Apart from financing the land acquisition and construction costs, you also need to obtain licenses and permits, which can be financially strenuous. Additionally, running the operations of a petrol pump requires a constant flow of working capital to pay wages, purchase fuel, manage logistics, and cover other miscellaneous expenses. Fortunately, banks today offer a variety of loan options to help you kickstart your petrol pump business. With the right financing option, you can take the first step towards building your petrol pump without having to worry about the upfront costs.
Investment requirements:
To get started on owning a petrol pump, it is required for the applicant to show the ability to have a minimum investment of Rs. 25 lakhs ready for regular petrol pumps and Rs. 12 lakhs in the case of rural locations. The process of obtaining a license also requires a bit of investment. The license payment details are as follows:
| Particulars | Amount |
| License fee | Rs. 18/KL for motor spirit, Rs. 16/KL for high-speed diesel for ‘B’/’DC’ retail outlets site Rs. 48/KL for motor spirit and Rs. 41/KL for high-speed diesel for ‘A’/’CC’ retail outlet site |
| Application fee | Rs. 100 for rural retail outlets and Rs. 1000 for regular retail outlets |
| Fixed fee | For dealer owned/company leased: Rs. 5 lakhs for the rural site and Rs. 15 lakhs for regular site. For company-owned: Rs. 10 lahks for the rural site and Rs. 30 lahks for the regular site. |
These figures are the initial figures and do not involve the working capital requirements and the cost of building the petrol pump. On the basis of all these figures, it is only necessary to get a business loan for your petrol pump. You would have a steady flow of income which you can use to repay the loan over a period of time.
Features and Benefits of Business Loans for Petrol Pumps:
As similar to normal loans, business loans can be availed from banks, Non-Banking Finance Companies (NBFCs), and digital NBFCs. Digital NBFCs are a revolutionary way of getting a business loan.
Large range of loan amounts:
Business loans of up to Rs. 2 crores can be availed of. Smaller business amount loans of Rs. 50,000 are also available. A bigger loan amount would be enough to get the petrol pump started as well as be enough for working capital.
Short processing time:
loan processing time is really quick. The applicant doesn’t have to wait for months on end to get the loan approved and in their account.
Flexible tenure:
Business loans can have a tenure of up to 36 months. The applicant would have sufficient time to repay the loan.
Repayment options:
One can choose to repay their loans in a variety of ways. Monthly or bi-weekly. Some loans even allow you to repay them when you have particularly good sales.
Shorter disbursal time:
The time to get your loan amount is as short as 3 days. Most banks take up to 8-10 days to get your loan amount disbursed.
Low-interest rates:
The interest rates are determined using big data and analytics. The interest rate is carefully decided and differs from case to case. You would get only the best interest rate for your petrol pump.
Eligibility Criteria:
- The eligibility criteria to get a business loan from a bank or an NBFC is not long.
- The applicant has to be an Indian citizen.
- Age of applicant must be between 21 to 55 years.
- If your business is already established and you are applying for a loan, you must be in operation for more than 6 months. This will differ among different financial institutes.
- Most business loans require a minimum turnover amount. For example, minimum turnover of Rs. 90,000 or more in the months before your loan application.
- The business must not be in the blacklist or the excluded list.
- The location of the business also must not be in a specific location.
Documents Required
- Bank Statement
- Address Proof of applicant: Aadhar card, Driver’s license etc.
- Identity Proof of applicant: PAN card, Driver’s license etc.
- Proof of business registration
- Partnership Deed
- Company PAN card
How to Apply for Online Petrol Pump Business Loan through Sunrays?
As the name suggests, offers various types of business loans and working capital loans. The entire process of availing of a business loan is digital and very quick.
- Submit Application: Go to Lendingkart.com and submit an application for the loan of your choice. You would have to enter all the details regarding your business and your details too.
- Upload documents: All the documents mentioned in the section above must be submitted digitally online to the website.
- Get approved: If all goes well and your loan is approved, your application will be sanctioned and disbursed to you within 3 days.
Fees and Charges:
Fees and charges that you would have to pay as an applicant on sunrays are as follows:
| Interest Rates | Between 15% and 27% |
| One-time processing fee | 2-3% |
| Tenure | Up to 2 years |
| Pre-closure fee | 0 |
| Loan Amount | Rs. 50,000 – Rs. 2 crores |
| Repayment schedule | Monthly or Bi-weekly |
Business Loan for Petrol Pump FAQs:
- Why should you pay bi-weekly?
The advantage of repaying your loan bi-weekly is that you can get it repaid off quickly. The quicker the loan is repaid, the sooner can it be renewed, thus recreating a revolving credit. - Can I get a business loan with a low credit rating?
A business loan might get approved with a low credit rating but with a higher interest rate. It will be better if the credit rating is improved before applying for a loan.
