How To Get A Business Loan For A Franchise Business?

Franchise businesses have become a popular choice for entrepreneurs looking for a proven business model with reduced risk. Whether it’s a fast-food chain, a retail brand, or a service-based company, franchises offer a structured framework, brand recognition, and a quicker route to profitability. However, starting a franchise requires a significant investment. This is where securing a business loan for a franchise business becomes essential.

At Bravima Solution Pvt Ltd, we specialize in helping entrepreneurs connect with leading NBFCs (Non-Banking Financial Companies) to access the right financing solutions. If you are planning to open a franchise, this comprehensive guide will help you understand how to get a loan, the eligibility criteria, required documents, and the best NBFCs offering franchise loans.

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Why Choose a Business Loan for Franchise Business?

Franchise businesses require an upfront investment that includes franchise fees, setup costs, equipment, and initial working capital. A business loan helps you:

• Pay the franchise fee
• Set up the store/outlet
• Buy equipment and inventory
• Manage initial operational costs
• Meet advertising and branding expenses

By opting for a loan, you retain full ownership and control while leveraging the brand’s reputation to drive sales and profitability.

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Steps to Get a Business Loan for Your Franchise Business

1. Understand Your Financial Requirement

Estimate the total investment you need. Consider:

• Franchise fees
• Rental/lease deposit
• Equipment and machinery
• Inventory
• Staffing costs
• Marketing and advertising
• Working capital for at least 6-12 months

2. Research Franchise Brands

Choose a franchise brand with strong demand and a successful track record. Lenders prefer financing businesses associated with reputed and profitable franchise brands.

3. Prepare a Solid Business Plan

NBFCs and lenders want to see a clear business plan outlining:

• Business model and franchise details
• Market analysis and competition
• Projected revenues and profit margins
• Timeline for breakeven and growth

4. Check Your Credit Score

A good credit score (typically 700 and above) increases your chances of approval. If your score is low, work on improving it before applying.

5. Choose the Right Lender

NBFCs often provide quicker and more flexible loans compared to traditional banks. Compare multiple lenders based on:

• Interest rates
• Loan tenure
• Processing fees
• Prepayment and foreclosure charges

6. Submit the Required Documents

Prepare a comprehensive document set (details below).

7. Apply and Get Approved

Apply through Bravima Solution Pvt Ltd to get access to pre-approved offers from top NBFCs.

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Eligibility Criteria for Franchise Business Loans

Eligibility typically varies slightly between lenders, but here are common requirements:

• Age: 21 to 60 years
• Business Type: New or existing franchisee
• Experience: Prior business experience preferred but not mandatory
• Credit Score: 650 and above (700+ ideal)
• Income Proof: Regular income or business turnover documents
• Collateral: Usually unsecured, but higher amounts may require security

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Documents Required

1. KYC Documents: Aadhaar Card, PAN Card
2. Business Registration Proof: GST registration, Trade License
3. Franchise Agreement: Agreement signed with franchisor
4. Financial Statements: ITR for last 2 years, bank statements
5. Ownership Proof: Lease/rental agreement or property papers
6. Photographs: Passport-size photos
7. Business Plan: Detailed proposal for the franchise

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Charges Associated with Franchise Business Loans

Charges	Amount / Percentage
Interest Rate	10.99% to 24% p.a.
Processing Fee	1% to 3% of loan amount
Prepayment Charges	2% to 5%
Late Payment Fee	₹500 to ₹1000 per month
EMI Bounce Charges	₹300 to ₹500

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Tips to Improve Loan Approval Chances

• Maintain a High Credit Score: Keep your score above 700.
• Show a Solid Repayment Capacity: Stable job, strong bank balance, or existing business income.
• Choose a Reputed Franchise: Brands with higher success rates attract better loan offers.
• Minimize Liabilities: Clear existing debts if possible.

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Why Apply Through Bravima Solution Pvt Ltd?

• Wide Network of NBFCs: Including Bajaj Finserv, Tata Capital, and Fullerton India.
• Personalized Loan Assistance: Tailored based on your franchise choice and financial profile.
• 100% Digital Process: Apply online, share documents digitally, and track progress.
• Expert Guidance: Dedicated loan advisors help you at every step.
• Fast Approvals: Get loans sanctioned in as little as 48 hours.