How to Start a Yoga Studio and Secure Financing for It

From being a yoga practitioner to owning a yoga studio, seems like turning your passion into business. Starting a yoga studio and managing it is a dream for many yoga enthusiasts, but it can often feel overwhelming. It requires significant time, research, and resources to set up and operate effectively. If you are considering starting your own yoga business, get going in an informed manner. Learn how to structure and manage the studio and take the right steps for success. 

One of the most important aspects to consider is the yoga studio’s start-up cost. While the dream seems within reach, its funding can become overwhelming. It will have a major impact on your planning and financial strategy. Once you have the initial investment and working capital in place, you can plan for the most suitable business financing option.

With increased disposable income in Indian households, there has been a rise in new and innovative yoga studios. The industry is expanding rapidly and appears to be highly promising. If you are looking into how to start a yoga studio and keep it going for the long term, ensure that you start off by obtaining the correct licences.

The registrations and licenses you need to have include:

• Registration as per the business model, such as Limited Liability Partnership registration or One Person Company Registration

• Registration under the Goods and Services Tax (GST)

• Professional Tax registration (if your yoga studio hires employees) 

• Trade licence from the licensing department of your area’s municipal corporation

• MSME Udyog Aadhaar registration

• Registration under the Employee Provident Fund (if you employ more than 20 staff members)

• Employee State Insurance Corporation registration (if you employ more than 10 staff members)

Financial stability is crucial for achieving long-term success in your business. Plan where you need to invest to ensure you are not making mistakes that could result in losing money. Here are some key aspects you can consider:

Uses of a Financial Solution to Set Up a Yoga Studio

You can obtain funding through a business loan for a yoga studio if you require a substantial amount and do not want to deplete your savings. The loan can assist you in covering the following expenses:

• Cost for the Space: Renting or purchasing a suitable space for your studio can be expensive. The cost may vary depending on the location, size of the space, and the amenities it offers. 

• Ongoing Expenses: This covers regular costs such as monthly rent, utilities (electricity, water, internet), studio maintenance, and employee salaries, including compensation for instructors and administrative staff.

• Equipment and Décor: You can finance all the necessary yoga equipment such as mats, yoga blocks, straps, chairs, blankets, bolsters, meditation cushions, and any other props required for classes and workshops.
  With enough funds in hand, you will be able to create a calming yet inviting ambience in your studio using the right flooring, lighting, paint, and wall art. 

• Marketing:Use it to finance advertising and promotional activities, including creating and maintaining a website and social media campaigns. Consistent investment in marketing will help make sure you attract new clients and retain existing ones.

A loan for a yoga studio from banks or Non-banking Financial Institutions (NBFCs) can give you a head start on your start-up. These loans are tailored to meet the needs of both new and experienced business owners. Here are the advantages you will gain:

• Quick Access to Funds: In most cases, the disbursal process for a business loan may be faster compared to other borrowing methods. 

• Minimal Documentation Requirements: You need fewer documents to secure a high-value loan, with some banks offering loans based on your credit history without collateral. 

• Flexible Repayment Tenures: By comparing different loans, you will find one with a repayment option that suits your financial situation. 

• Competitive Interest Rate: As the loan market is competitive, many banks offer lower interest rates to stand out. With a good credit score, you can further enhance your potential to get affordable financing.

Different lenders set their own different eligibility criteria that you need to fulfil for an approval. Take a look at some basic requirements:

• Citizenship: You must be a resident of India

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

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

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

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

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

• Income: 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 provide some paperwork to get approval for a loan for a yoga studio. Here is a list of the 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

When applying for a business loan to set up a yoga studio in India, lenders evaluate both personal and business financial credibility. A strong personal credit score, usually 700 or above, reflects consistent repayment behavior and financial discipline, reducing the likelihood of loan rejection and potentially enabling lower interest rates.

For registered entities, lenders also examine the Company Credit Report (CCR). Provided by credit bureaus such as TransUnion CIBIL, the CCR details the company’s credit exposure, repayment history, and outstanding liabilities. It also includes a CIBIL Rank ranging from 1 to 10, with Rank 1 representing the highest level of creditworthiness.

Maintaining timely repayments, minimising overdue accounts, and complying with statutory obligations at both personal and business levels can significantly improve approval chances. This evaluation helps lenders gauge the financial stability of the yoga studio business, enabling structured funding for studio setup, equipment, staff salaries, and operational expenses.

You can easily apply for a business loan in a few simple steps:

1. Click on the 'CHECK ELIGIBILITY' button on this page.
   

2. Fill out the application form with your personal and business details.
   

3. Pick a lender from the listed options.
   

4. Select the loan amount and repayment term that suits you.
   

5. Submit your application for review.