Kirana stores have been a common feature in every nook and corner of India for a long time.  The 2nd Covid wave in India has once again brought about lockdowns which have resulted in the closing of business establishments across various parts of the country, except for essential shops which are allowed to remain open for limited hours during the lockdown. 

As such, these Kirana stores have seen their popularity soar due to the huge buying and stocking of groceries by the public during the crisis. However, though one can make use of this business opportunity and put up a Kirana store, still this remains a dream for many owing to the paucity of funds for setting up a business. 

So, which is the best way to raise funds to establish a small Kirana business? The answer is: MSME loans

What is an MSME Loan?

MSME loan stands for Micro, Small, and Medium Enterprise loan which is provided to businesses that do not have a very large capital base. Generally, small businesses find it extremely challenging to avail credit as they do not have collateral to pledge or make smaller turnovers as compared to the big enterprises. 

An MSME loan offers incredible benefits to small businesses. It helps small enterprises like Kirana stores to increase their returns by offering them access to timely capital. MSME loans help in building financial stability and run business operations smoothly. The tenure of MSME loans differs from lender to lender. The rate of interest on such loans is also low making it an attractive option for small businesses. 

How to strengthen your Kirana Business with an MSME Loan?

The Covid-19 pandemic has led to increased grocery shopping both online and offline, mainly through the local Kirana stores. This has made the Government of India realise the necessity of such stores in the growth of the Indian economy. To enable such stores to survive during the crisis and take advantage of digitization, measures have been enabled like tie-ups with bigger corporate houses like Jio-Mart that helps connect customers with neighbourhood Kirana stores. This opportunity can be considered by anyone wishing to open a Kirana store or grow their existing store by availing MSME loans and upgrading technology so as to thrive even during the crisis. 

Benefits of MSME loan for your Kirana business

Key benefits of availing MSME loan for your Kirana business are:

  • Affordable

MSME loans have been created to help establish small businesses. These loans are easily affordable and come with low-interest rates which can be repaid by the small business in the form of convenient monthly EMIs. 

  • Minimal Paperwork

MSME loans are readily available and require minimal documentation which is an added bonus for small businesses. An MSME loan can be availed with easily available documents like your bank statements and income tax returns.

  • Flexibility in Loan Tenure

The tenure of MSME loans is based on the type of business enterprise and their repaying capacity. A Kirana store owner can also choose from various repayment options as per their financial and repayment capability. 

  • Prepayment charges not applicable

If the small business owner wishes to repay the loan before the end of the loan tenure, then there are no prepayment charges applicable on MSME loans. This helps the small borrower save penalty charges which otherwise are levied on other business loans. 

Where Can One Get MSME Loan From?

There are now various government schemes like MSME business loan in 59 minutes and technology-driven digital lenders like ZipLoan, Kirana Capital who provide MSME loans. MSME loans are also offered by public sector banks, corporation banks, and even private sector banks and NBFCs.  

With minimal documentation requirement, the Kirana store owner has to fulfil the basic eligibility criteria and avail of MSME loans at low interest rates and no prepayment charges. Your application normally gets processed within 24 hours while the loan amount is disbursed in about three days. 


You can now realise your dream of owning and growing your Kirana store by making use of the benefits and opportunities given by the Government through the MSME loans for essential business services, to optimize their profits and actualize their dreams. 


1. Is Kirana store business a profitable venture?

Yes, the Kirana store business is profitable provided you own the place or have your store located in a place where there is a lot of commercial activity.

2. How can a Kirana store be established?

By being prudent and following the below steps, one can easily establish a Kirana store. 

  • Have a Business Plan
  • Choose appropriate Location
  • Understand your customers
  • Keep track of your investments
  • Upgrade technology in your Store
  • Get all necessary Licenses/Permits

3. How much is the profit margin on a Kirana store?

In India, a Kirana store can make a profit ranging between 2% – 20%. 

4. Is establishing a Kirana store business a good business idea?

Selling groceries has always been a viable option in India owing to the large middle-class population of the country. Also, a Kirana store can be started from almost anywhere, with good earning potential. With the Covid-19 pandemic necessitating the need for buying essentials while maintaining social distancing measures, Kirana store owners can make use of this opportunity to upgrade their store through technology. 

5. Is it mandatory to obtain a Fssai license for a Kirana store?

Yes, it is mandatory to obtain a Grocery Store food license for opening a Kirana store in India.