Things to Look Before Taking A Loan for Petrol Pump

While a business loan might provide your firm with a consistent source of funding, starting a petrol pump demands careful thought. 

However, it can be a wise investment if placed in a favorable area, and you can take a loan for petrol pump as a business start up loans.

Tips for a petrol pump business: 

1. research the market

To launch a gasoline pump company, first ascertain whether varieties—turbo, fuel, or mechanical pumps—are successful and the level of demand for each.

Learn about government rules governing vehicle carbon emissions and the requirements you must adhere to lower them while researching the market. You should also be aware of the numerous growth factors for the sector, such as simplified engine starters, adoption of high-speed fuel injection technology, fuel economy, and lower maintenance costs.

2. Make sure you’re eligible

The next stage in the plan petrol pump business handbook is determining your eligibility to open a pump. The requirements at this time are:

You must have been a resident of India for more than 182 days to qualify.

To be eligible for ownership, you must be between the ages of 21 and 55.

Candidates for the SC/ST/OBC categories must have finished the 12th grade, while those for the open categories must have graduated. Freedom fighters are not subject to these restrictions.

3. Arrange for the necessary upfront payment.

The next step after knowing the market is finance. List every area in need of financing, such as:

  • The price of leasing or purchasing the land
  • constructing the station
  • Obtaining the required tools
  • the price of buying gasoline
  • Taking charge of staff wages and supplier payments
  • Utility costs

Include the first sluggish days and any potential losses when calculating the financial needs of your firm. The initial investment may range between Rs. 15 and 20 lakhs; hence obtaining  business start up loans or MSME loan for petrol pump is the best option for bringing in rapid cash.

4. Verify the availability of land

A significant intersection without a gas station nearby or a distant area, rural or urban, is an example of a location with little competition and high profitability. The property has to be levelled, developed, and conveniently accessible by road.

According to the rules, the land must also be at least 800 square metres in size. After reaching an arrangement with the oil dealer, you may either lease the property for your gas station company or get a loan for petrol pump.

5. Request a licence

To establish stations, oil firms advertise in newspapers or online. To apply, you must purchase a form and provide your identification, land information, and mark sheets. Additionally, you need to provide your bank information, income tax records, lease or ownership documents for land, financing and investment documentation, and GST registration paperwork. Pay a licencing cost after submission.

For operating a gas station, the government gives a licence.

How do you launch a gas station business?

You have two options if you want to establish a gas station business:

Observe all Oil Marketing Companies (OMC) adverts in print media and digital channels.

You may find out where and how many gas stations they want to build up by looking at a website or advertisement. If anything appeals to you, you may apply to the relevant website. The corporation may distribute the pump based on a drawing, auction, or lottery if there are several applications.

Act as follows:

  • On Petrol Pump Dealer Chayan, register.
  • After receiving a login ID and password, you may use them to apply to the gas station through accessible advertising.
  • Decide where to put the pump.
  • To sign up, click “Apply Now.”
  • Choose between individual and partnership ownership.
  • Pay the 10,000 charges. You’re done with the application now!

How can I apply for a licence to operate a gas station?

After receiving a pump, you must apply for a business licence for a gas station:

A licence application form must be filled out, costing 100 in rural regions and 1000 in cities.

After receiving the licence, you must get a GST number and pay GST using the gasoline station’s current account.

What is the best place to install a petrol pump?

Every business has its criteria for selecting a property for a gas station. While reading the advertising, check where the pump will be opened with your approved land. Apply only if it is in the same region.

Regular retail outlets are close to roads, but actual rural stores are those that are located far from highways. The conditions for the land are as follows:

  • The candidate must be the landowner or have a lease that lasts for the same number of years as the oil dealership.
  • The applicant must provide all required paperwork for the verification procedure.
  • In rural locations, the land should be larger than 800 m2, and in urban areas, it should be larger than 2000 m2.
  • The terrain needs to be well levelled and accessible by road.

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