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Here’s How To Start A Wholesale Business In India?

Published on Nov 28, 2022Updated on Jan 29, 2024

Here’s How To Start A Wholesale Business In India?

Many small business owners in India turn to running a wholesale business to earn greater profits and serve their customers better. From clothing to stationery, from groceries to footwear, you can start a wholesale business in any domain. The foremost requirements are a big storage space for your goods located in an area accessible to your customers, and the initial funds to purchase the first bulk load of goods.

How to start a wholesale business? After figuring out what you want to deal with and where to set up an establishment, you should opt for a business loan to manage your funds. You can use the money to buy the initial load of goods, hire staff, renovate the customer-end shop, and arrange for billboards.

Factors to Keep in Mind for Starting A Wholesale Business

If you’re looking to start a wholesale business in any domain, here are a few steps to help you:

Step 1: Decide on Products

There are multiple products you can sell if you want to start a wholesale business. You can choose to deal with utensils like cookers, pans, ladles, plates, and pots in bulk. You can sell pens, pencils, paper, notebooks, colours, chartsheets, files, and glue if you want to enter the stationery business. You can even start a clothing store or sports equipment shop.

The first step to starting a business is to know what products your business loan will be used for.

Step 2: Carry Out Research

Find out what other sellers in your demographic area are working with. Understand the kind of people, choices, and interests in your area. If you’re planning to start a local business with branches in many parts of the same city, then you should also learn about the costs involved in different localities.

These details will be required as part of your business loan requirements. Hence, it is vital that you keep track of such information.

Must Read: How to Start a Travel Agency Business In India?

Step 3: Draft Your Finances

Once you have the basics figured out, you must start noting down all possible bulk and miscellaneous expenses, from initial purchase to storage setup. This way, you can plan your business loan amount in the most budget-friendly manner. Also maintain a margin in case there are several last-moment disasters to manage or inclusions to make. Practising healthy financial management is one habit all businesspersons must adopt.

Keep in mind that your finance model must be rigid enough to present to the lending institution while applying for the loan, but also flexible enough to make suitable changes when time demands so.

Step 4: Get Started Soon

Once you have your foundation prepared, you must reach out to a lending institution that supports your venture well. The business loans offered must have the following characteristics:

  • High loan amount, ranging up to INR 75 Lakhs*
  • High loan tenure, ranging up to even 48 months
  • Quick funds disbursement
  • No collateral requirement
  • Reasonable business loan interest rates

Choose your lender wisely and make the most of your business loan.

Plan Your Finances

You should always choose a lender that gives you the freedom of determining your interest rates and EMI schedules.

The equated monthly instalments can be calculated this way:

EMI = [P x R x (1+R) ^N]/[(1+R) ^N-1]

Such that,

P is the principal amount
N is the loan tenure in months
R is the monthly business loan interest rate

For example, if you wish to take up a business loan for wholesale at INR 48,00,000 with an interest rate of 14% for 24 months, then your calculated EMI is INR 2,30,462.

To avoid the trouble of having to perform the calculations yourself, you can check out our online business loan EMI calculator.


SMFG India Credit’s business loan for small and medium businesses is a great consideration if you wish to start your business today. With affordable interest rates and comfortable repayment tenures, you can be assured of a successful venture. Our 100% online application and quick loan approval processes can get you started with no delay. Enjoy transparency with 0 hidden fees and minimal processing charges. Check out our online business loan eligibility calculator to know if you qualify and apply today.

* Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG India Credit's policy at the time of loan application. If you wish to know more about our products and services, please contact us

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