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Get franchise finance of up to ₹80 Lakhs to cover franchise fees, equipment purchases, fit-outs, inventory, and working capital requirements.
Last updated on: Oct 19, 2026
A franchise finance provides the financial support needed to help you launch and grow your business, making your dream of becoming a franchise owner achievable. Lenders generally expect you to contribute 20% to 30% of the total project cost from your own funds. On Bajaj Markets, you can compare franchise finance options with interest rates starting from 13.50% p.a. and choose a solution that suits your business requirements.
Franchise finance is a funding solution that helps entrepreneurs start, operate, or expand a franchise business. The financing can be used to cover expenses such as franchise fees, outlet setup costs, equipment purchases, inventory procurement, interior fit-outs, and working capital requirements.
Funding may be available through banks, NBFCs, and eligible government-backed schemes, depending on the applicant's profile and business requirements. Instead of relying entirely on personal savings, franchise finance provides access to structured funding to support the initial investment and ongoing operational needs of the franchise.
When evaluating an application, lenders typically consider factors such as the franchise brand, business plan, repayment capacity, credit profile, and overall project viability. Choosing a suitable financing option can help you manage cash flow more effectively while establishing or growing your franchise business.
Franchise loans come with high-value funding, enabling businesses to cover significant costs and seize growth opportunities.
With affordable interest rates, business loan for a franchise provide affordable repayment options, reducing the financial burden on businesses.
Flexible repayment tenures allow businesses to manage repayments comfortably and align them with their cash flow and growth plans.
Franchise loans help businesses avoid disruptions and scale their supply chain quickly to meet rising demand.
Businesses can choose from multiple financing options depending on the franchise brand, project cost, collateral availability, and funding requirement. While some options are designed specifically for franchise businesses, others can be used to finance franchise fees, outlet setup costs, equipment purchases, inventory, and working capital needs.
| Type of Finance | Best For | Collateral Requirement |
|---|---|---|
Franchise Business Loan |
New or existing franchise owners seeking funding for setup, expansion, or working capital |
May be secured or unsecured, depending on the lender |
Business Loan |
Meeting general business expenses, inventory purchases, and operational needs |
Often available without collateral, subject to eligibility |
Loan Against Property |
Larger funding requirements and lower interest rates |
Yes |
MUDRA Loan |
Eligible micro and small businesses requiring smaller loan amounts |
Generally collateral-free, subject to scheme guidelines |
Equipment Financing |
Purchasing machinery, equipment, or specialised business assets |
The financed asset may serve as security |
Working Capital Loan |
Managing day-to-day business operations and cash flow requirements |
Varies by lender |
Overdraft Facility |
Addressing short-term funding gaps and fluctuating cash flow needs |
May be secured or unsecured |
Here are the lending partners on Bajaj Markets, along with their loan amounts, interest rates, and processing fees to help you compare options easily:
| Available Offerings | Maximum Loan Amount | Starting Interest Rate | Maximum Loan Tenure | Processing Fees |
|---|---|---|---|---|
₹80 Lakhs |
14% p.a. |
96 months |
Up to 4.72% (Inclusive of applicable taxes) of the loan amount |
|
₹50 Lakhs |
18% p.a. |
42 months |
Up to 2.5% of the loan amount |
|
₹2 Lakhs |
29.5% p.a. |
30 months |
Up to 2% |
|
₹50 Lakhs |
13.50% p.a. |
36 months |
Up to 3% of the loan amount + GST |
|
₹30 Lakhs |
22% p.a. |
36 months |
Up to 3% of the loan amount + GST |
|
₹30 Lakhs |
18% p.a. |
36 months |
3% to 4.25% |
|
₹10 Lakhs |
22% p.a. |
36 months |
3% to 4% of the loan amount + GST |
|
₹10 Lakhs |
22% p.a. |
36 months |
Up to 4.72% (Inclusive of applicable taxes) |
|
₹75 Lakhs |
15.5% p.a. |
60 months |
Up to 2% + GST |
|
₹35 Lakhs |
20.5% p.a. |
36 months |
1% - 6% |
|
₹75 Lakhs |
17% p.a. |
72 months |
Up to 3% of the loan amount |
Disclaimer: The above-mentioned details are subject to change at the lender’s discretion.
Most lenders do not finance 100% of a franchise project. In many cases, you are expected to contribute 20% to 30% of the total project cost from your own funds, while the lender finances the remaining amount. The exact funding percentage depends on factors such as the franchise brand, business experience, credit profile, project viability, and lender policies.
The loan amount sanctioned may cover franchise fees, outlet setup costs, equipment purchases, inventory requirements, and working capital needs. Lenders typically evaluate both the business proposal and your ability to contribute towards the project before approving funding.
| Total Project Cost | Borrower's Contribution (20%-30%) | Potential Lender Funding (70%-80%) |
|---|---|---|
₹10 Lakhs |
₹2 Lakhs - ₹3 Lakhs |
₹7 Lakhs - ₹8 Lakhs |
₹25 Lakhs |
₹5 Lakhs - ₹7.5 Lakhs |
₹17.5 Lakhs - ₹20 Lakhs |
₹50 Lakhs |
₹10 Lakhs - ₹15 Lakhs |
₹35 Lakhs - ₹40 Lakhs |
₹1 Crore |
₹20 Lakhs - ₹30 Lakhs |
₹70 Lakhs - ₹80 Lakhs |
Eligibility requirements for franchise finance vary by lender. However, applicants are generally expected to meet the following criteria:
You must be an Indian citizen
You must be at least 21 years old
You should be self-employed, a professional, or a business owner
Your business should have been operational for at least 6 months, where applicable
Your business may be registered as a sole proprietorship, partnership, LLP, or private limited company, depending on the lender's requirements
You should meet the lender's income, credit, and business eligibility criteria
Note: Eligibility criteria can vary across lenders. Review the specific lender's requirements before applying for franchise finance.
Here is a list of the essential documents required to apply for a business loan for franchise, ensuring a smooth and efficient application process:
Identity Proof: Aadhaar Card, PAN Card, Voter ID, Passport, or Driving Licence
Address Proof: Aadhaar Card, Voter ID, Passport, Utility Bills, or Rent Agreement
Proof of Income: Income Tax Returns (ITR), bank statements, or salary slips (as applicable)
Qualification Proof (if required): Relevant degree or certification, especially for specialised franchise businesses (such as healthcare or education)
These documents help lenders assess your eligibility, financial stability, and ability to repay the loan.
When financing a franchise business, you can complete most steps online with minimal documentation.
Follow these simple steps to apply for a business loan online:
Click here to apply
Fill in your personal, business, and franchise-related details in the application form
Choose your preferred lender from the available options
Specify the loan amount you wish to borrow and select a repayment tenure that works for you
Double-check your details and submit the application online
Once approved, the lender will disburse the loan amount directly into your bank account
Reviewer
Franchise financing works by providing funds to help you start or expand a franchise business. You apply for a suitable loan based on your requirements, such as setup costs, inventory, or working capital. The lender evaluates your profile, business plan, and repayment capacity before approving the loan. Once approved, the amount is disbursed, and you repay it through EMIs or flexible terms, depending on the financing option chosen.
Getting a franchise loan with a low credit score is possible but challenging. Lenders may approve loans with higher interest rates or require additional collateral. Consider working on improving your credit score for better loan terms.
Eligibility for a franchise loan generally includes being an Indian citizen, being over 21 years old, having at least 6 months of business experience, a CIBIL score of 650 or higher, and meeting the lender's turnover requirements.
You can compare lenders and apply through Bajaj Markets to find suitable financing options based on your needs. You can also explore other options when financing a franchise business in India, such as bank loans, NBFC funding, MUDRA schemes, or support from the franchisor.
You usually need to invest a portion of the total cost from your own funds. In most cases, lenders expect you to contribute around 20–30% of the total investment. The remaining amount may be covered through franchise financing.
Yes, you can get franchise finance without collateral in some cases. Options such as MUDRA loans or loans under the CGTMSE scheme do not require you to pledge assets. However, approval depends on your credit profile and business viability.
Interest rates for franchise finance vary by lender and borrower profile. On Bajaj Markets, business loan interest rates can start from 13.50% p.a., while the final rate depends on factors such as the franchise brand, credit profile, business experience, loan amount, and repayment tenure.
Lenders generally prefer established franchise brands with a proven business model, strong market presence, and a track record of successful outlets. Such businesses are often viewed as lower-risk because their operating performance and revenue potential are easier to assess.
Not always. While some lenders prefer applicants with business experience or an existing operating business, eligibility requirements vary. First-time entrepreneurs may explore options such as MUDRA loans, CGTMSE-backed funding, or lender-specific programmes designed for new business owners.
Approval and disbursal timelines vary across lenders and depend on factors such as documentation, eligibility verification, and credit assessment. Check the lender's official timelines or contact the lender directly for the most current processing information.
Yes, eligible micro and small businesses may use a Mudra loan to support franchise-related expenses, subject to lender approval and scheme eligibility. Under the Pradhan Mantri MUDRA Yojana (PMMY), funding is available up to ₹20 Lakhs under the Tarun Plus category.
The maximum repayment tenure varies by lender and loan product. On Bajaj Markets, some business loan options for franchise financing offer tenures of up to 96 months, subject to the lender's eligibility and credit assessment criteria.
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