How to Apply for a Loan for a New Petrol Pump

These days, you may have noticed that there are millions of people who own either a motorcycle or a car. This means that the consumption of gasoline has increased over the past few decades. As a result, there is a greater need for petrol stations. However, setting up a new petrol station requires a significant amount of money. The best solution to this problem is to apply for a Business Loan for Petrol Pump. This loan will help cover the financial gap involved in establishing a petrol station. We at Hero FinCorp offer Business Loans at attractive interest rates to meet your financial requirements for this.

Business Loan for Petrol Pump

A Business Loan for a Petrol Pump is a form of capital or working capital borrowed by a petrol pump owner from lenders. The purpose of this loan is to fund various expenses related to the daily operations, expansion, growth, or marketing of the petrol pump. The main objective of obtaining a private business loan is to quickly inject money into the business, enabling it to meet urgent requirements such as expanding the petrol pump, fulfilling working capital needs, purchasing necessary assets, and hiring additional staff.

The demand for a business loan for a petrol pump can vary depending on the size of the petrol pump, its specific needs, and the industry it operates in. At Hero FinCorp, we understand this diversity from our extensive experience in providing loans to medium and small-sized enterprises (MSMEs) in various industries across India. With our Hero FinCorp  MSME loan for petrol pump, we strive to ensure that the financial needs of petrol pump businesses are met. Our flexible business line of credit and term loans are specifically designed to provide quick access to urgent working capital for petrol pump owners.

Features and Benefits of Business Loans for Petrol Pump

By availing our petrol pump loan, you can benefit from a high loan amount, flexible repayment tenure, hassle-free application process, quick disbursal of funds, and the advantage of collateral-free loans.

• High Loan Amount: 

Our business loans for petrol pumps provide access to a substantial loan amount. At Hero FinCorp, you can avail an SME business loan ranging from Rs 5 lakh to Rs 25 lakh. This ensures that you have adequate funds to meet your petrol pump's financial requirements.

• Flexible Tenure:

We offer a flexible loan repayment tenure of up to 36 months for our small business loans. This allows you ample time to repay the loan without feeling rushed or burdened by short deadlines.

• Hassle-free Loan with Minimal Paperwork:

We understand the importance of convenience and efficiency for your petrol pump business. With Hero FinCorp, you can expect a hassle-free loan application process with minimal paperwork. As long as you meet our easy eligibility criteria, you can enjoy instant loan approval and quick access to funds.

• Quick Disbursal: 

We take pride in our swift loan disbursal process. We ensure that funds for your petrol pump business are made available to you within 48 working hours. This allows you to seize opportunities and address urgent financial needs promptly.

Also, Read: A Complete Guide to Collateral Free Business Loans

• Collateral-Free Business Loans:

Hero FinCorp offers collateral-free small business loans, which means you are not required to provide assets as security for obtaining a loan for your petrol pump. This eliminates the need for getting your assets appraised, making the loan approval process even faster and more convenient for your SME business.

Eligibility Criteria for Business Loan for Petrol Pump

Your petrol pump loan interest rate will be based on how well you meet our eligibility requirements. And we have set the basic criteria for you to apply.

Citizenship & Age:

• Indian citizenship is required at the time of application.
• Minimum age requirement is 21 years.
• Maximum age at the end of the loan's tenure should not exceed 65 years.

Occupation:

• Self-employed Professionals:
• Architects
• Chartered Accountants
• Doctors
• Company Secretaries
• Self-employed Non-Professionals:
• Sole Proprietors
• Retailers
• Traders
• Manufacturers
• Service Providers

Entities:

• Limited Liability Partnership (LLPs)
• Private Limited Company
• Partnership Firms
• Trusts

Work Experience:

• A minimum of five years of experience in the existing business as an SME.

Monthly Income:

• There are no predefined income criteria for granting a business loan.

Document Required for Business Loan for Petrol Pump

We process your business loan for petrol pump request by cross checking whether you meet our eligibility criteria, and for this we ask for the following:

Document	Description
Duly filled application form	Application form completed with PAN card details
Identity Proof	Voter ID Card, Photo ID issued by GOI, Passport, Driving Licence, Aadhaar Card
Address Proof	Aadhaar Card, Voter ID Card, Property Tax Receipt, Driving Licence, Utility Bill, Registry Copy, Property Tax Receipt, Lease or Rent Agreement
Business Continuity Proof	VAT, Excise, Sales Tax, Service Tax Registration, Trade License, Copy of partnership deed, Registration Certificate issued by RBI or SEBI, Certificate of Practice
Signature Proof	Banker’s Verification/ Passport/ PAN Card
Income Proof	Latest ITR, GST returns for the financial year, Latest audited financials, Last 6 months bank statement
Additional Documents	List of Directors, Shareholding patterns (if applicable)

What Factors Do Lenders Consider Before Giving You a Business Loan?

When considering a business loan under the petrol pump loan scheme, we take several factors into account before making a decision. As these factors play a crucial role in assessing the feasibility and potential success of the loan. 

1. Who's Your Supplier?

We evaluate the credibility and reliability of the fuel supplier associated with the petrol pump. A reputable and established supplier enhances our confidence in your business's ability to maintain a consistent fuel supply, which is essential for generating revenue.

Read Also: How to get a Business Loan without ITR? 

2. Direct Competition:

The level of competition in the area where the petrol pump is located is also a significant consideration. We assess the number of existing petrol pumps in close proximity and evaluate the market saturation. A highly competitive market may impact the revenue potential and repayment capacity of the loan.

3. Location and Traffic:

The location of the petrol pump and the volume of traffic it attracts are crucial factors for lenders. A prime location with high traffic flow increases the chances of generating sufficient revenue to repay the loan. Lenders assess the accessibility, visibility, and potential customer base associated with the proposed petrol pump location.

4. Experience Required:

Lenders typically consider the experience and expertise of the borrower in managing a petrol pump business. They assess the borrower's knowledge of industry-specific operations, regulations, and best practices. Previous experience in the fuel retail sector can strengthen the borrower's case for loan approval.

How to Apply for Loan for Petrol Pump

Here is how to apply for a loan for a petrol pump with Hero FinCorp:

• Click on here, and visit the dedicated online business loan application page specifically designed for petrol pump loans.
• Fill Out the Essential Fields and Upload Relevant Documents 
• Enter the Loan Amount and Tenure, specify the loan amount and desired repayment tenure that aligns with your financial requirements.
• Receive a Reference Number, and keep this for future correspondence and tracking purposes.
• Contact from our representative for any additional information or clarifications regarding your application.
• Upon successful verification, you will receive a personalised loan offer that includes details such as the approved loan amount and the applicable interest rate.
• After the loan offer is accepted, and the necessary formalities are completed, we will disburse the approved loan amount directly into your bank account. 

Conclusion:

Certainly, obtaining a loan for a petrol pump and embarking on this new business venture may initially appear to be a complex and lengthy procedure. However, how to get business loans without security is more manageable as you begin organising your documents and securing the necessary licences. Operating a petrol pump is an incredibly profitable business and serves as an excellent investment opportunity. Moreover, it entails fewer risks compared to other types of investments that may yield uncertain profit margins. While the location of the petrol pump holds significant importance, equally crucial is how you strategically utilise the funds acquired through the loan.

Also, Check: How to Use a Business Loan EMI Calculator?

FAQ

• How much money we need to open a petrol pump?

The amount of money required to open a petrol pump in India can vary depending on various factors such as the location, infrastructure, and size of the petrol pump. Generally, the estimated cost to set up a petrol pump ranges from around Rs 25 lakh to Rs 35 lakh. This includes expenses for land acquisition or lease, construction or renovation of the petrol pump premises, equipment installation, licensing fees, and initial working capital. It's important to note that these figures are approximate and can vary based on specific circumstances and market conditions.
 

• Can a person own more than one petrol pump?

Yes, it is possible for a person to own more than one petrol pump in India. However, owning multiple petrol pumps is subject to certain regulations and guidelines set by the oil marketing companies (OMCs) and the Petroleum and Explosives Safety Organization (PESO). These regulations may include criteria related to the individual's experience in the oil industry, financial stability, compliance with safety standards, and adherence to specific guidelines for multiple petrol pump ownership. It is advisable to consult with the concerned authorities and OMCs to understand the specific requirements and procedures for owning multiple petrol pumps in India.