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How to Start a Yoga Studio and Secure Financing for It

Know what you need to start a yoga studio and how to secure funds to cover essential expenses.

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.

Step-by-step Guide to Starting a Yoga Studio

Open a yoga studio with a clear understanding of the following: 

1. Have a Clear Vision

While you may come across a dozen different yoga business ideas, narrowing down to the first step. Start by considering three key factors: your goal, your aspiration, and what sets you apart from others. 

It is important to define your target customers and decide on the types of classes you will offer, such as Vinyasa, hot yoga, aerial yoga, or Iyengar. Additionally, identify your Unique Selling Point (USP) to attract and retain students. This could be through themed lessons, workshops featuring guest instructors, or offering refreshments via an in-house vegan smoothie bar. This clarity will help guide your business decisions and ensure your yoga business ideas flourish.

2. Conduct Market Research

To gain clarity, research about competitors who are excelling in the business. Understand the competitor’s positive and negative aspects, and learn what their customers appreciate. Note down the positive points and integrate them into your own business planning.

3. Make a Financial Plan

For sustainable growth, it is essential to understand where you need to allocate funds. Initially, the first expense will be related to opening the studio. Some common costs include rent for the studio space, electricity bill, costs of equipment, and salaries for staff, among others.

As the business grows, you can allocate funds for marketing and more. Your capital can come from various sources, including bank loans, investors, assets, and savings. 

4. Register Your Business

Another very important aspect of starting a yoga business is the registration. You need to register and obtain all necessary licences to run it. It is advisable to set up your yoga studio as a Limited Liability Partnership (LLP) or Company. This will make it easier if you ever need to transfer investments, such as rental deposits or interiors. 

Here are the primary business structures you can choose from:

Sole Ownership

One person owns and operates a business without creating a separate legal entity

Partnership

Owned and run by two or more people who agree to share the profits, losses, and risks of the business

Limited Liability Company

Protects its owners from personal liability for the company's debts and losses

Corporation

Legal entity that is separate from its owners

5. Finalise the Location

Choosing a location can be one of the most challenging tasks when starting your own yoga studio. To make the process easier, there are a few factors to consider. First, ensure the location is appropriate as per your finances. 

Next, decide on the size of the space based on the number of students you want to teach per session. It is also important that the location is easily accessible and offers ample parking space. Lastly, choose a space that can attract the clientele you want. 

6. Market Your Brand

As a new business, marketing is key to growth. While a website and social media account is necessary, you can think about handing out brochures, advertising through billboards, and inviting friends and family for trial classes. 

You can also create awareness at corporate parks through health-related activities. Budget this into your initial costs and scale up marketing when needed.

Registration and Licensing for a Yoga Studio in India

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)

Cost of Starting a Yoga Studio Business in India

Starting a yoga studio in India involves thoughtful financial planning. Investment needs vary depending on the city, size of the studio, and the variety of services offered. The following analysis presents estimated costs for Tier‑1, Tier‑2, and Tier‑3 cities, highlighting how these factors shape overall capital requirements.

Tier Classification and Cost Factors

  • Tier 1 Cities: Cities like Mumbai, Delhi, and Bengaluru have higher real estate, labour, and operational costs, which increase the initial investment required to start a yoga studio.

  • Tier 2 & Tier 3 Cities: Cities such as Jaipur, Kochi, Patna, and Indore offer more affordable rental and staffing costs, making it easier to set up and operate a yoga studio with lower overall capital requirements.

City Tier Small Studio (₹) Medium Studio (₹) Premium Studio (₹)

Tier 1

₹5 – ₹15 Lakhs

₹15 – 35 Lakhs

₹35 – 70 Lakhs

Tier 2

₹3 – ₹10 Lakhs

₹10 – 25 Lakhs

₹25 – 50 Lakhs

Tier 3

₹1 – ₹5 Lakhs

₹5 – 12 Lakhs

₹12 – 25 Lakhs

Disclaimer: These cost figures are indicative and meant for illustrative purposes only and do not guarantee actual expenditure patterns. Actual investment needs may vary significantly depending on location, brand, property terms, and market conditions. It is important to consider consulting experts for precise budgeting.

Understanding Financing For a Yoga Studio

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.

Benefits of a Business Loan

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.

Business Loan Interest Rates Offered by Various Lenders on Bajaj Markets

You can now apply for a business loan with minimal documentation and secure a high-value loan on Bajaj Markets. Here is a list of lenders you can compare:

Available Offerings Minimum Interest Rate Maximum Tenure

Aditya Birla Capital UDYOG PLUS Business Loan

22% p.a.

36 months

Ambit Finvest Business loan

20% p.a.

36 months

AYE Finance Business loan

29.50% p.a.

30 months

Bajaj Finance Business loan

14% p.a.

96 months

FlexiLoans Business loan

18% p.a.

42 months

IIFL Finance Business loan

16.50% p.a.

48 months

InCred Business loan

24% p.a.

60 months

Indifi Business loan

22% p.a.

36 months

KreditBee Business loan

18% p.a.

36 months

Lendingkart Business loan

19.20% p.a.

36 months

Protium Business loan

20.5% p.a.

36 months

Credit Saison Business loan

22% p.a.

36 months

UGRO Capital Business loan

24% p.a.

72 months

L&T Finance Business loan

15.50% p.a.

60 months

Godrej Capital Business Loan

16% p.a.

72 months

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

Document and Eligibility Criteria for a Business Loan

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

Credit Score & Company Credit Report (CCR) for a Business Loan to Start a Yoga Studio Business

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.

How to Apply for a Business Loan on Bajaj Markets

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.

Schemes Offered by the Government for SMEs/MSMEs

The Government of India offers several schemes to provide financial support and incentives to Micro, Small, and Medium Enterprises (MSMEs) in the yoga and wellness sector. The following programs can help yoga studio entrepreneurs access funding, upgrade infrastructure, develop skills, and grow their business:

Scheme Purpose

MUDRA Loans (PMMY)

Collateral-free loans for micro and small businesses.

Credit Guarantee Fund Trust for MSEs (CGTMSE)

Provides guarantee-backed loans without collateral.

Stand-Up India Scheme

Supports SC/ST and women entrepreneurs with funding.

Skill Development Programs (PMKVY/NSDC)

Provides training, workshops, and entrepreneurship guidance.

Marketing and Brand Promotion Support
(MSME Act initiatives)

Grants assistance for exhibitions, fairs, and digital marketing.

Technology Upgradation Fund (TUF)

Supports investment in modern technology and equipment.

State Government Schemes for Yoga Studio MSMEs

State Scheme Description

Uttar Pradesh

One District One Product (ODOP)

Promotes district-specific MSME products and services.

Maharashtra

Maharashtra MSME Development Scheme

Provides subsidies for equipment, infrastructure, and skill development.

Karnataka

Karnataka Creative Industries Support

Financial and advisory support for creative and wellness businesses.

Tamil Nadu

TN MSME Promotion Policy

Subsidies and incentives for small and medium enterprises.

Gujarat

Startup & MSME Support Program

Financial aid, training, and marketing support for MSMEs.

Andhra Pradesh

ADEETIE Scheme

Promotes energy-efficient technologies in MSMEs.

Disclaimer: These Central and State Government schemes may or may not be applicable to secure business funds for starting a Yoga studio business in India. It is crucial to check the eligibility criteria and other terms and conditions of any scheme you are interested in before applying.

Frequently Asked Questions

Do I need planning permission for a yoga studio?

Yes, opening a yoga studio in India typically requires approvals from local municipal authorities. This may include a trade or business license, occupancy certificate, and adherence to fire safety and building regulations. Additional permissions may be needed if offering wellness or medical-related services.

A small yoga studio should ideally be around 250–400 sq. ft. This space is sufficient to accommodate 8–12 participants comfortably, allowing proper mat placement, movement, ventilation, and basic props. Larger studios are recommended for group sessions or additional wellness services.

Opening a yoga studio in India can cost between ₹5 Lakhs and ₹1 Crore. The investment varies based on factors such as location, studio size, and the scale of your marketing efforts.

Yes, a yoga studio can be profitable due to increasing health awareness across all age groups. However, profitability will depend on factors like location, the environment, and the quality of services offered.

Select a location within your budget and near the audience that will serve as your target clientele.

To attract customers, focus on:

  • Delivering exceptional service quality

  • Offering a variety of classes to cater to different needs

  • Being approachable, polite, and offering clear guidance

  • Promoting special offers and limited-time deals

  • Inviting well-known yoga instructors to hold courses from time to time 

  • Offering healthy refreshments with an in-house café 

  • Clubbing yoga with other fitness activities 

  • Holding in-person and virtual classes or sessions to reach a wider audience

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