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How to Open a Gym and Secure Financing for It

Learn how to turn your gym business idea into a reality! Get essential business planning tips, explore financing options, and more.

With increasing emphasis on health and fitness, the demand for gyms, personal training, and wellness services has never been higher. As more people are becoming increasingly conscious about their physical and mental health, opening a gym can be a lucrative venture.

A successful gym may earn revenue through membership subscriptions, one-on-one personal training, and guidance on nutrition and meal planning. You can also have regular workshops and sessions with expert trainers to retain customer interest and increase footfall.

However, to get this idea off the ground, you need financing. Getting a business loan for a gym can be a good idea. You can benefit from competitive interest rates, extended repayment tenures, and more. Here is a comprehensive guide on starting a gym business.

Step-by-Step Guide to Starting a Gym

To open a gym in India, here are the key steps you need to take:

1. Choose a Business Model

It is essential to select the right business model to ensure profitability. Common options include:

  • Membership: Charge customers a fixed monthly fee to use the gym

  • Flexible: Offer custom packages based on customer needs

  • Pay-as-you-go: Charge customers each time they use the gym

  • Integrated: Combine membership and pay-as-you-go for more flexibility

2. Finalise the Location

Pick a location that attracts customers, such as a residential area, a busy marketplace or near a commercial district. Accessibility is key, as most people prefer gyms close to their homes or workplaces.

3. Obtain the Necessary Licences

Ensure you have the required permits, including one from the local police department. Additional licences may be needed based on the services you offer, like a swimming pool, spa or café. 

4. Arrange Capital

You will need financing for your gym setup. Business loans are a popular way to secure funds. Nowadays, many financial institutions offer specialised loans for the fitness industry, such as opening a gym or a yoga centre.

5. Purchase Equipment

Research the equipment top gyms in your city use and avoid outdated machines. Pay attention to the interior design to create an inviting space for members. Here is some common equipment:

  • Treadmills

  • Stationary bikes

  • Dumbbells, kettlebells and barbells

  • Weight machines, plates and bench

  • Resistance bands

  • Weight bench

  • Suspension trainers

  • Dip station

  • Chest press machine

  • Incline bench press machine

  • Leg curl machine

  • Smith machine

  • Plyo boxes

  • Exercise bikes

  • Stair stepper

  • Training battle rope

  • Fitness balls 

6. Hire Qualified Trainers

Hiring skilled trainers is essential. Ensure they hold relevant certifications from recognised bodies. Some certifications include:

  • Certification from BFY Sports & Fitness

  • Training certificate from Gold’s Gym Fitness Institute (GFFI)

  • Certification from the Indian Academy of Fitness Training (IAFT)

  • Certificate from Certified Bodybuilding & Gym/ Personal Trainer (CBT)

Registration and Licencing for a Gym in India

Here are the licencing and registration requirements you need to fulfil to start a gym business in India:

  • Clearance from the Police Department

Before you can operate your gym or fitness centre, you must obtain clearance from the local police department in your area.

  • Business Licence

Every business in India is required to obtain a business licence. The specific requirements for this may vary based on the local municipal corporation.

  • Goods and Services Tax (GST) Registration

If your business has a turnover exceeding ₹20 Lakhs (or ₹10 Lakhs for special category states), you must register for GST.

  • Health and Safety Compliance

Ensure your gym meets local health regulations and safety standards, especially if you offer certain services. These include swimming pools, saunas, or food and beverages.

  • Shops and Establishment Registration

This registration is required to regulate working conditions and protect employee and employer rights in the unorganised sector. It is needed when you employ 10 or more workers.

Cost of Opening a Gym

Opening a gym in India requires significant investment, influenced by factors such as city tier, gym size, facilities offered, and whether it is an independent setup or franchise. 

Here is an estimated cost breakdown:

City Tier Estimated Investment Range Key Considerations

Tier-1 Cities (e.g., Mumbai, Delhi, Bangalore)

₹25–70 Lakhs

High real estate costs, premium fitness equipment, branding, and professional trainers.

Tier-2 Cities (e.g., Pune, Jaipur, Lucknow)

₹15–40 Lakhs

Moderate rental and setup costs, rising demand for fitness centres, lower branding spend.

Tier-3 Cities (e.g., Bhopal, Varanasi, Coimbatore)

₹8–20 Lakhs

Lower overheads; feasible for budget gyms or basic setups with essential equipment.

Disclaimer: The cost estimates provided are indicative and may vary based on the size, facilities, and location of the gym. Conducting a detailed market study and consulting with fitness industry experts is advisable before finalising the budget.

Cost Breakdown by Category

  • Rent and Location

Rent varies widely depending on the city and property size. In Tier-1 cities, commercial spaces can cost ₹1–2.5 Lakhs per month, while in Tier-2 and Tier-3 cities, it may range from ₹50,000–₹1 Lakh.

  • Gym Equipment

Purchasing equipment such as treadmills, cross-trainers, weights, benches, and strength machines can cost ₹10–25 Lakhs for a mid-sized gym.

  • Licences and Permits

Business registration, trade licence, fire safety clearance, and music licences may collectively cost between ₹20,000–₹60,000.

  • Staffing and Trainers

Hiring certified trainers, nutritionists, and administrative staff can cost ₹60,000–₹2 Lakhs monthly, depending on the gym’s scale.

  • Interior and Setup

Interiors, flooring, mirrors, lockers, shower rooms, and lighting may require ₹5–10 Lakhs.

  • Marketing and Branding

Digital promotions, signboards, and local advertising campaigns may cost ₹1–3 Lakhs initially.

Business Loan Options Available on Bajaj Markets to Start a Gym Business

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Financial Planning and Securing Financing for Your Gym

Starting a gym, like any other business, involves both fixed and variable costs. Proper financial planning is crucial to manage all these expenses effectively. A business loan could be a helpful option to consider. Here is everything you need to know about securing a loan for a gym business:

Uses of a Business Loan for Gym

You may require a loan to cover several essential expenses that are crucial to getting your business running. These include:

  • Equipment Costs

Purchasing gym equipment, such as weights, cardio machines, and other fitness tools, can be a significant upfront investment

  • Costs for Buying or Renting Gym Space

Securing a suitable location for your gym, whether through purchase or rental, is one of the major expenses you will need to cover

  • Costs for Hiring Staff

You will need to hire qualified trainers, receptionists, and support staff, and their salaries will be an ongoing expense

  • Marketing Expenses

To attract customers, you will need to invest in advertising and promotional campaigns, both online and offline

  • Insurance Costs

Gym insurance is essential to protect your business from liabilities, such as accidents or damages that may occur on the premises

Benefits of a Business Loan

Here are some benefits of getting a loan for opening a gym:

  • Competitive Interest Rates

Business loans generally have lower interest rates than personal loans. This helps you get funding for your gym venture at a more affordable cost.

  • Repayment via Affordable EMIs

You can repay the business loan in budget-friendly equated monthly instalments (EMIs).

  • Extended Repayment Tenures

Many business loans come with flexible repayment terms. You can choose a longer period to repay the amount, which can reduce your monthly EMI.

  • Quick Processing and Disbursal

Most issuers process the application quickly, leading to timely disbursal. This allows you to access the capital you need without delays, helping you set up your gym sooner.

Business Loan Offers and Interest Rates by Various Lenders on Bajaj Markets

Apply for a business loan with minimal paperwork and secure a substantial loan through this platform. Here is a list of lenders offering business loans along with the interest rates:

Available Offerings Starting Interest Rates (p.a.)

Bajaj Finance Business Loan

14% p.a.

Aditya Birla Capital UDYOG PLUS Business Loan

22% p.a.

IIFL Finance Business Loan

16.50% p.a.

FlexiLoans Business Loan

18% p.a.

KreditBee Business Loan

18% p.a.

Lendingkart Business Loan

19.20% p.a.

Ambit Finvest Business Loan

20% p.a.

InCred Business Loan

24% p.a.

UGRO Capital Business Loan

24% p.a.

Indifi Business Loan

22% p.a.

Credit Saison Business Loan

22% p.a.

Protium Business Loan

20.50% p.a.

AYE Finance Business Loan

29.50% p.a.

L&T Finance Business Loan

15.50% p.a.

Godrej Capital Business Loan

16% p.a.

Disclaimer: The mentioned rates are subject to change at the lender’s discretion.

Documents and Eligibility Criteria for a Business Loan

Here are the eligibility criteria that you need to fulfil to get a business loan via Bajaj Markets:

  • Citizenship: You must be a resident of India

  • Age: Your age must be between 21 and 60 years

  • Credit Score: You need to have a good credit score

  • Employment Type: You should be an experienced self-employed individual

  • Experience: Your business must have been operational for at least 1 year

  • Company Type: Your business should be registered as a partnership, LLP, or private limited company

  • Annual Turnover: Your business needs to have an annual turnover of ₹1.5 Lakhs or more, as per the Income Tax Returns (ITR

You will also need to submit the following documents:

  • Identity Proof: Passport, PAN card, Aadhaar card, voter’s ID, and driving licence

  • Address Proof: Lease agreement, Aadhaar card, utility bills, and passport

  • Income Proof: Bank statement (last 6 months), ITR, income computation, Profit and Loss (P&L) statement, and balance sheet (previous 2 years)

  • Business Proof: Certified copy of the Memorandum and Articles of Association, Sole Proprietorship Declaration, and Partnership Deed

Credit Score and Company Credit Report (CCR) for Gym Business Loan

Lenders carefully assess both personal and business credit history before approving loans for gyms. Since gyms involve high upfront costs for equipment and setup, creditworthiness plays a vital role in determining eligibility and loan terms.

  • Personal Credit Score (for Individuals or Sole Proprietors)

If you are opening a gym as an individual, your CIBIL score will be evaluated. A score of 750 or above is generally required to access loans with favourable interest rates. A strong score demonstrates repayment discipline and makes it easier to secure funds for costly imports like treadmills, cross-trainers, and other high-value equipment.

  • Company Credit Report (for Registered Entities)

For gyms established as a company (LLP, Pvt Ltd, or partnership), lenders review the Company Credit Report (CCR). A CCR rank of 1–3 reflects strong financial stability, improving your chances of obtaining higher loan amounts for large-scale setups, premium interiors, or franchise-based expansion.

Fitness centres face intense competition and require continuous upgrades to retain members. A strong credit profile ensures access to timely funds, enabling you to expand services, hire professional trainers, and maintain modern equipment without financial strain.

How to Apply for a Business Loan on Bajaj Markets

You can apply for a business loan through this platform in a few simple steps:

  1. Click on 'Check Offers' button on the top right corner of the page

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

  3. Enter the loan amount and preferred repayment tenure

  4. Submit the form for verification

Schemes Offered by the Indian Government for Gyms

The Indian government provides various central and state-level schemes under MSME and entrepreneurship frameworks that can support gym owners with affordable financing, collateral-free loans, and subsidies.

Here are the schemes:

Scheme Name Scheme Type Loan Amount / Coverage

PMEGP (Prime Minister’s Employment Generation Programme)

Central

₹10 Lakhs (urban), ₹5 Lakhs (rural)

MUDRA Yojana (Micro Units Development and Refinance Agency)

Central

Up to ₹10 Lakhs

CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises)

Central

Up to ₹5 Crores (guarantee cover)

Stand-Up India Scheme

Central

₹10 Lakhs – ₹1 Crore for women and SC/ST entrepreneurs

Startup India Credit Guarantee Scheme (CGSS)

Central

Collateral-free credit up to ₹10 Crores for eligible startups

Maharashtra State Finance Corporation (MSFC)

State (Maharashtra)

₹5 Lakhs – ₹50 Lakhs

Tamil Nadu State Financial Corporation (TNSFC)

State (Tamil Nadu)

₹5 Lakhs – ₹50 Lakhs

Delhi State Industrial & Infrastructure Development Corporation (DSIIDC)

State (Delhi)

₹5 Lakhs – ₹1 Crore

Uttar Pradesh Financial Corporation (UPFC)

State (Uttar Pradesh)

₹10 Lakhs – ₹5 Crores

Kerala State Industrial Development Corporation (KSIDC)

State (Kerala)

Support for small service-sector enterprises, including gyms

Disclaimer: The loan amounts and scheme details provided above are indicative and may vary depending on eligibility criteria, state policies, and updates in government regulations.

Frequently Asked Questions

How Much Money Is Required to Open a Gym?

The cost of opening a gym in India depends on the location, size, and facilities provided.

  • Tier-1 cities: ₹25–70 Lakhs for a mid to large gym with premium equipment

  • Tier-2 cities: ₹15–40 Lakhs for a standard setup with moderate facilities

  • Tier-3 cities: ₹8–20 Lakhs for a basic gym with essential machines

These costs cover rent, equipment, interiors, staffing, licences, and marketing.

Yes, owning a gym can be profitable if managed efficiently. Profitability depends on location, membership pricing, and retention rates.

  • Average monthly memberships can range from ₹1,500–₹5,000 per person, depending on the city and facilities

  • A gym with 200–300 active members can cover operating costs and generate sustainable profits

  • Value-added services like personal training, diet consultations, and group classes can further boost income

Yes, you need various licences to start a gym in India. Some of these include:

  • Business Licence

  • Police Clearance

  • GST Registration

  • Shops and Establishment Registration

Choose a location with high footfall, such as a residential neighbourhood or a busy commercial area. The gym should be easily accessible, as people typically prefer gyms that are near their homes or workplaces.

To attract customers to your gym, consider the following strategies:

  • Provide excellent services, including high-quality equipment

  • Give one-on-one time to every customer

  • Provide free trials or introductory discounts

  • Promote your gym on social media platforms

  • Call expert trainers to hold workshops

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