How to Open a Gym and Secure Financing for It

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.

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Research the equipment top gyms in your city use and avoid outdated machines.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)

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.

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.

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

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.

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