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Starting a franchise business can be one of the smartest ways to become an entrepreneur. You get to run your own business, but with the support, reputation, and system of an already successful brand. However, one big question always comes up — how to get a franchise business loan in India?

In this blog, we’ll guide you step-by-step on what a business loan is, what a franchise loan means, the different types available, and how you can easily get one. We’ll also show how Franchise Bhoomi can help you make the process simpler and faster.

Let’s begin!

What Is a Business Loan?

Before we dive into the franchise business loan, let’s understand what a business loan is.

A business loan is money borrowed from a bank or financial institution to start, manage, or expand your business. It helps you cover expenses such as rent, equipment, marketing, inventory, and employee salaries. You repay the loan in monthly installments with interest.

In simple words, a business loan gives you financial support so you can focus on growing your business instead of worrying about money.

When it comes to franchises, you may not need to start from zero — but you still need money for franchise fees, interiors, equipment, and working capital. That’s where a franchise business loan helps.

What Is a Franchise Loan?

A franchise business loan is a special type of business loan designed for people who want to start a franchise.

It helps investors or entrepreneurs pay for franchise setup costs such as:

• Franchise fee (the amount you pay to use the brand name)
• Shop or outlet setup costs
• Equipment and interiors
• Marketing and staff expenses
• Initial inventory and supplies

The best part is that banks and NBFCs (Non-Banking Financial Companies) consider franchise businesses less risky compared to new startups because they already have a proven business model and brand reputation.

So, getting a franchise business loan can actually be easier than getting a normal business loan.

Types of Franchise Business Loans

There are different types of franchise business loans in India, and each one serves a specific purpose. Let’s look at them one by one:

Also Read this: Mudra Loan (PMMY) – What is Mudra Loan, How to Get, How to Apply, Get upto 10 Lakhs

How to Get Franchise Business Loan in India (Step-by-Step Guide)

Now, let’s go step-by-step on how you can apply and get a franchise business loan in India.

Step 1: Choose the Right Franchise Brand

Before applying for a franchise business loan, decide which franchise you want to start. Banks prefer well-known and trusted brands because they have a strong business model and higher success rates.

Popular examples include Café Coffee Day, Apollo Pharmacy, and Jockey.

Step 2: Prepare a Business Plan

Even if it’s a franchise, you need a solid business plan.
Include details like:

• Brand information
• Location
• Investment needed
• Expected revenue and profit
• Loan amount required and repayment plan

This helps lenders understand your financial goals and business potential.

Step 3: Check Eligibility

Every bank has its own eligibility rules for a franchise business loan, but most require:

• Minimum age of 21 years
• Indian citizenship
• Good credit score (700 or above preferred)
• Stable income source

If you already run another business, it helps strengthen your loan application.

Step 4: Gather Required Documents

Keep these documents ready:

• Franchise agreement or Letter of Intent (LOI)
• Business plan
• KYC documents (Aadhaar, PAN, etc.)
• Bank statements (6–12 months)
• Income proof (ITR or salary slips)
• Property documents (if secured loan)

Having all documents ready will speed up your franchise business loan approval.

Step 5: Compare Banks and Loan Offers

Don’t rush! Compare different banks and NBFCs to find the best loan with the lowest interest rate and flexible repayment options. You can explore:

• State Bank of India (SBI)
• HDFC Bank
• ICICI Bank
• Axis Bank
• Bajaj Finserv
• Tata Capital

Also Read this: List of Banks in India – Reserve Bank of India

Step 6: Apply for the Loan

You can apply online through the lender’s website or visit the branch directly. Fill in your details, upload the required documents, and submit your franchise business loan application.

Step 7: Verification and Approval

The bank will review your application, check your credit score, verify documents, and may contact the franchise brand. Once approved, you’ll receive the loan amount in your bank account.

How Franchise Bhoomi Will Help You

At Franchise Bhoomi, we understand that applying for a franchise business loan can be confusing, especially for first-time entrepreneurs. That’s why we’re here to help you at every step.

Here’s how we make the process simple for you:
✅ We connect you with trusted franchise brands that banks easily approve for loans.
✅ We guide you in preparing the right business plan and documentation.
✅ We help you understand which loan type suits your business — term loan, working capital, or government scheme.
✅ Our team assists you in applying for the franchise business loan with the best banks and NBFCs.

With Franchise Bhoomi, you don’t have to run from one bank to another. We make the loan process faster, easier, and stress-free — so you can focus on starting your dream business.

Conclusion

Getting a franchise business loan in India is not as difficult as it seems. If you plan properly, prepare the right documents, and choose a reputed brand, your chances of getting approval are high.

Remember — a good business plan and a strong franchise name always make a big difference.

And if you ever feel lost, Franchise Bhoomi is here to help you get the right franchise business loan quickly and easily.

Start your franchise journey today and make your dream of owning a business come true!

Frequently Asked Questions (FAQ)