How to Start a Coaching Centre in India and Secure Financing for It

Starting a coaching centre in India can be a rewarding business, as the demand for quality education and skill training continues to grow across cities and towns. However, setting up a coaching institute requires careful planning, from renting space and hiring teachers to investing in study materials and marketing. To manage the fixed and variable costs involved, getting a loan to open a coaching centre is a smart choice. You can explore various lenders offering business loans on Bajaj Markets with competitive interest rates and flexible terms, helping you turn your vision into a profitable reality.

Here is a step-by-step guide to help you set up a coaching centre successfully:

1. Choose the Right Location

The location of your coaching centre directly impacts student enrolment. Pick an area close to schools, colleges, or residential communities where demand is naturally high. Ensure it is well-connected by public transport so students and parents can access it easily.

2. Define Your Niche and Courses

Identify the type of coaching you want to provide, whether it is academic tutoring, competitive exam preparation, or skill-based training. A clear niche helps you target the right students and build a strong brand identity. Tailoring your courses to demand also gives you a competitive edge in your area.

3. Register and Get Licences

Legal registration adds credibility and protects your business in the long run. Choose a business structure such as sole proprietorship, partnership, or private limited company. Secure trade licences, GST registration, and other permits required to operate professionally and qualify for financing.

4. Arrange Infrastructure and Study Material

A comfortable and well-equipped classroom environment enhances learning outcomes. Invest in basic infrastructure like desks, boards, lighting, and digital teaching tools. Provide updated study material and resources so students feel confident in the quality of coaching offered.

5. Hire Qualified Teachers

Teachers are the backbone of any coaching centre’s success. Hire skilled and experienced faculty members who can teach effectively and build trust among students. Offering good pay and growth opportunities helps you retain them long-term.

6. Create a Business and Marketing Plan

A structured business plan helps you manage costs and plan growth. Include details about expenses, course fees, and revenue targets for clarity. Use a mix of online marketing like social media and offline methods like flyers to reach your audience effectively.

7. Secure Financing for Your Coaching Centre

Starting and running a coaching centre requires funds for infrastructure, salaries, and marketing. Business loans are a smart way to manage both fixed and variable costs without straining personal savings. Bajaj Markets connects you with trusted lenders offering competitive interest rates and flexible repayment terms.

Here is the correct way to register and license your coaching centre in India so you can operate legally and access financing without hurdles:

Choose a Legal Business Structure

Before you start, decide whether to register your coaching centre as a sole proprietorship, partnership, or private limited company. Each structure affects taxation, liability, and long-term growth differently. Selecting the right model helps you plan finances better and gives your centre a professional identity.

Apply for a Trade Licence

Most cities in India require a trade or general licence from the local municipal authority to run a coaching centre legally. This licence certifies that your centre complies with local rules on commercial activity. Apply within the prescribed timeline, usually before or within 30 days of opening, to avoid penalties.

Register Under the Shops and Establishments Act

The Shops and Establishments Act regulates working hours, staff conditions, and business practices for coaching centres. Registration is mandatory in most states within 30 days of starting operations. This step ensures legal recognition and smooth functioning of your business.

Obtain GST Registration (if applicable)

If your coaching centre’s annual turnover from services exceeds ₹20 Lakhs (₹10 Lakhs in special category states), GST registration becomes compulsory. With GST, you can issue proper invoices, claim input tax credits, and comply with tax law. It also improves your credibility with lenders when applying for loans.

Secure Additional Local Clearances

Depending on your state or city, you may need fire safety clearance, building use approval, or other compliance certificates. These clearances protect both students and staff by ensuring safety standards are met. Fulfilling such requirements early prevents legal issues and builds trust with parents.

Maintain Documentation for Business Loans

Proper registration and licences strengthen your eligibility for business loans. Banks and NBFCs usually ask for proof of business registration, GST certificates, and trade licences before sanctioning credit. Keeping documents in order speeds up approval and helps you access competitive financing options

Starting a coaching centre in India requires careful financial planning, as costs vary depending on the city tier, scale of operations, and quality of infrastructure. Here, factors like location, rent, faculty salaries, and technology investments significantly impact your overall budget. The following cost analysis offers structured estimates tailored to Tier-1, Tier-2, and Tier-3 cities.

Tier Classification and Cost Factors

• Tier 1 (Delhi, Mumbai, Bengaluru, Chennai, Hyderabad, Kolkata): High rentals, salaries, and marketing expenses drive up setup costs

• Tier 2 (Jaipur, Indore, Lucknow, Surat, Coimbatore): Moderate infrastructure and operational costs make these cities attractive for medium-scale coaching centres

• Tier 3 (smaller cities and towns): Lower real estate and staffing costs enable entry with compact setups at minimal investment

City Tier – Estimated Coaching Centre Setup Cost

Summary

• In Tier 1 cities, setting up a coaching centre may cost between ₹12 Lakhs and ₹40 Lakhs, depending on scale and facilities

• In Tier 2 cities, the investment typically ranges from ₹6 Lakhs to ₹25 Lakhs

• In Tier 3 cities, compact setups can be launched with ₹4 Lakhs to ₹18 Lakhs, making them more affordable for first-time entrepreneurs

Disclaimer: These figures are indicative estimates meant for reference and may not reflect exact costs. Actual expenditure varies depending on city, rental terms, staff salaries, marketing needs, and technology investments. It is advisable to consult financial experts and prepare a detailed budget before launching.

Key Cost Components Across All Cities

Some costs remain common across Tier 1 and Tier 2 cities, though the exact amounts vary depending on location and scale. Here are the major expenses you must budget for when setting up a coaching centre:

• Infrastructure and Rent: Monthly expenses range from ₹30,000 to ₹2 Lakhs depending on the city and size of the premises

• Faculty Salaries: Experienced subject teachers typically earn ₹25,000–₹80,000 per month

• Marketing and Branding: Initial campaigns cost around ₹1–3 Lakhs, covering both digital and offline promotions

• Study Material and Technology: Books, projectors, smart boards, and software can add ₹2–5 Lakhs to your setup cost

Strong financial planning ensures that your coaching centre runs smoothly from the very beginning. Here are the most important steps to manage costs effectively and secure the right financing options:

• Prepare a Detailed Budget: Estimate setup costs, monthly expenses, and revenue projections to avoid financial surprises

• Separate Fixed and Variable Costs: Track fixed costs like rent and salaries, and plan for variable costs such as marketing and utilities

• Maintain a Cash Reserve: Keep emergency funds aside to cover at least three to six months of operating expenses

• Explore Business Loans: Apply for business loans on Bajaj Markets where multiple lenders offer competitive interest rates and flexible repayment terms

• Leverage Government Schemes: Check for SME/MSME schemes that provide low-interest loans or subsidies to support coaching centre owners

• Use Technology for Financial Tracking: Adopt accounting tools to monitor cash flow, automate reports, and simplify tax compliance

• Plan Loan Repayments Wisely: Choose EMIs that align with your income projections to avoid repayment stress

Here are the most practical ways a business loan can support the growth and smooth operation of your coaching centre:

• Classroom Setup: Use funds to rent or renovate premises and create a professional learning environment.

• Teaching Equipment: Invest in projectors, smart boards, and audio-visual tools to improve the quality of instruction.

• Faculty Salaries: Pay competitive salaries to attract and retain skilled teachers.

• Study Materials: Cover the cost of books, notes, and digital resources for students.

• Technology Integration: Introduce learning management systems or online platforms to expand your reach.

• Marketing and Branding: Run digital campaigns, print ads, and events to boost student enrolments.

• Expansion Plans: Open new branches or add specialised courses as your coaching centre grows.

• Working Capital Needs: Manage recurring expenses like electricity, internet, and maintenance without cash flow stress.

Here is a comparison of lenders available on Bajaj Markets with their loan amounts, interest rates, tenures, and processing fees to guide your financing decision:

Disclaimer:The loan amounts, interest rates, tenures, and processing fees mentioned in the table are indicative and subject to change at the discretion of the lender. Please verify the latest terms and conditions with the respective lender before applying.

Getting a business loan on Bajaj Markets is simple if you meet the lender’s basic requirements. While exact criteria may differ by lender, here are the general conditions you must fulfil:

• Nationality: You must be an Indian citizen with valid identity proof

• Business Experience: Your business should be running for at least 6 months with stable operations

• Credit Score: A CIBIL score of 650 or higher is usually required to prove good repayment history

• Work Status: You should be self-employed, either as a professional (doctor, CA, consultant) or non-professional entrepreneur

• Age: Applicants must be 21 years or older at the time of application

• Business Type: Eligible entities include partnerships, LLPs, and private limited companies

• Minimum Turnover: Your business should have a turnover of at least ₹2 lakhs annually to qualify

Having the right documents ready not only speeds up your loan approval but also improves your chances of securing better terms from lenders. Here is a list of the essential business loan documents you will generally need to provide:

Your credit score and company credit report play a key role in determining whether you qualify for a coaching centre business loan. Lenders assess these factors to measure your repayment capacity and financial discipline.

• Credit Score Importance: A CIBIL score of 750 or higher is generally required to secure approval with competitive interest rates

• Loan Eligibility: A strong score improves your chances of getting a higher loan amount and longer repayment tenure

• Company Credit Report (CCR): For registered entities, lenders also review the CCR to check business credit history and outstanding debts

• Impact on Interest Rates: A good credit score can help you negotiate lower interest rates, reducing overall borrowing costs

• Maintaining a Healthy Score: Timely repayment of existing loans, avoiding defaults, and keeping credit utilisation low all help maintain a strong score

• Business-Specific Benefits: A positive CCR assures lenders that your coaching centre is financially stable and capable of handling new credit

Here are the simple steps you need to follow to apply for a business loan on Bajaj Markets quickly and hassle-free:

1. Click on the ‘Check Eligibility’ option on the Bajaj Markets website

2. Enter your basic personal and business details in the online application form

3. Select the loan amount you wish to borrow and choose a suitable repayment tenure

4. Upload the required documents for verification

5. Submit the form and wait for the lender’s approval and loan disbursal

Here is a list of central government schemes that provide financial assistance, subsidies, and growth opportunities to strengthen SMEs and MSMEs across India: