Features and benefits

  • Swift processing

    Swift processing

    Apply easily without pledging your business assets and get loan approval in 48 hours*.

  • Up to %$$BOL-Loan-Amount$$%

    Up to Rs. 80 lakh

    Bolster working capital, pay royalty fees, maintain healthy cash flow, and much more with the ample sanctions available to you.

  • Flexi benefits

    Flexi benefits

    Choose the Flexi facility to borrow from your sanction and opt to pay interest-only EMIs and reduce the outgo by up to 45%*.

Running a franchise requires significant finance to establish and increase your reach to a new market segment. You can do all of this and more when you opt for finance for franchise from Bajaj Finance. This offering gives you access to capital of up to Rs. 80 lakh, and you can use it freely to make any business-related expenses.

This loan does not require any collateral and has simple eligibility parameters. You just need to submit a few documents and get your loan stress-free. Be sure to use our handy Business Loan EMI Calculator to plan repayment.

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Eligibility criteria and documents required

Qualifying for our franchise finance is easy. All you have to do is meet the following eligibility criteria and submit the basic documents to apply.

  • Age

    Age

    24 years to 80 years*
    (* age should be 80 years at the time of loan maturity)

  • Work status

    Work status

    Self-employed

  • Nationality

    Nationality

    Resident Indian citizen

  • Business vintage

    Business vintage

    At least 3 years

  • CIBIL score

    CIBIL Score

    685 or higher

Documents required:

  • KYC documents - Aadhaar/ passport/ voter’s ID
  • PAN card
  • Proof of business ownership
  • Other financial documents

Interest rate and fees applicable

Finance your franchise’s needs with Bajaj Finserv and enjoy a low-interest rate on your loan. Refer to this table for a breakup of the fees and charges.

Type of fee Applicable charges
Rate of interest 9.75% - 30% per annum
Processing fees Up to 3.54% of the loan amount (inclusive of applicable taxes)
Bounce charge In case of default of repayment instrument, Rs. 1,500/- per bounce will be levied.
Document processing charges Up to Rs. 2,360/- (inclusive of applicable taxes)
Flexi Fee

Term Loan - Not applicable

Flexi Term Loan (Flexi Dropline) - Up to Rs. 999/- (inclusive of applicable taxes)

Flexi Variant (as applicable below) - A fee will be deducted upfront from the loan amount

  • Up to Rs. 5,999/- (inclusive of applicable taxes) for loan amount less than Rs. 10,00,000/-
  • Up to Rs. 7,999/- (inclusive of applicable taxes) for loan amount from Rs. 10,00,000/- to Rs. 14,99,999/-
  • Up to Rs. 12,999/- (inclusive of applicable taxes) for loan amount from Rs. 15,00,000/- to Rs. 24,99,999/-
  • Up to Rs. 15,999/- (inclusive of applicable taxes) for loan amount of Rs. 25,00,000/- and above

*Loan Amount includes approved loan amount, insurance premium, VAS charges, and documentation charges.

Penal interest Delay in payment of monthly instalment shall attract penal interest at the rate of 42% per annum applicable on the monthly instalment outstanding, from the respective due date until the date of receipt of monthly instalment.
Pre-payment charges

Full Pre-payment

  • Term Loan: Up to 4.72% (inclusive of applicable taxes) on the outstanding loan amount as on the date of full pre-payment
  • Flexi Term Loan (Flexi Dropline): Up to 4.72% (inclusive of applicable taxes) of the total withdrawable amount as per the repayment schedule as on the date of full prepayment.
  • Flexi Hybrid Loan: Up to 4.72% (inclusive of applicable taxes) of the total withdrawable amount as per the repayment schedule as on the date of full prepayment.

Part Pre-payment

  • Up to 4.72% (inclusive of applicable taxes) of the principal amount of Loan prepaid on the date of such part Pre-Payment.
  • Not Applicable for Flexi Term Loan (Flexi Dropline) and Hybrid Flexi
Stamp duty (as per respective state)
Payable as per state laws and deducted upfront from the loan amount.
Mandate rejection charges Rs. 450/- per month from the first month of due date for mandate rejected by customer's bank until the new mandate is registered
Broken Period Interest/ Pre-EMI Interest

Broken period interest/ pre-EMI interest shall mean the amount of interest on Loan for the number of day(s) which is(are) charged in two scenarios:

Scenario 1 – More than 30 days from the date of loan disbursal till the first EMI is charged:
In this scenario, broken period interest is recovered by the following methods:

  • For Term Loan: Deducted from the loan disbursement
  • For Flexi Term Loan: Added to the first instalment
  • For Flexi Hybrid Loan: Added to the first instalment

Scenario 2 – Less than 30 days from the date of loan disbursal till the first EMI is charged:
In this scenario, interest is charged only for the actual number of days since the loan was disbursed.

Annual maintenance charges

Term Loan – Not Applicable

Flexi Term Loan (Flexi Dropline): Up to 0.295% (inclusive of applicable taxes) of the total withdrawable amount (as per the repayment schedule) on the date of levy of such charges.

Flexi Hybrid Loan: Up to 1.18% (inclusive of applicable taxes) of the total withdrawable amount during initial tenure. Up to 0.295% (inclusive of applicable taxes) of total withdrawable Amount during subsequent tenure.

Switch Fees* Up to 1.18% of the loan amount (inclusive of applicable taxes)
Mandate registration charges In case of UPI mandate registration, Re. 1 (inclusive of applicable taxes) will be collected from the customer


*Switch Fee is applicable only in case of switch of loan. In switch cases, Processing Fees and Documentation Charges will not be applicable.

How to apply

To apply for funding easily, all you have to do is fill out the quick application form by following these steps:

  1. 1 Click on the ‘APPLY' button on this page.
  2. 2 Enter your 10-digit mobile number and OTP.
  3. 3 Fill in the application form with your basic details, such as your full name, PAN, date of birth, and PIN code.
  4. 4 Once you enter all your details, please click on ‘PROCEED’ to visit the loan selection page.
  5. 5 Enter the loan amount that you need. Choose from our three business loan variants – Term, Flexi Term, and Flexi Hybrid.
  6. 6 Choose the repayment tenure – you can select tenure options of 12 months to 96 months and click on ‘PROCEED’.
  7. 7 Complete your KYC and submit your business loan application.

Our representative will guide you on the next steps. The loan amount will be transferred to your bank account upon verification of your documents.

Frequently asked questions

What is franchise finance?

Franchise finance refers to the funding and financial management involved in establishing or expanding a franchise business. It covers obtaining capital for franchise fees, equipment, and operational expenses, as well as managing ongoing financial aspects such as royalties and profits.

What are the 4 types of franchise businesses?

Franchise businesses can be categorized into four main types:

a) Product Distribution Franchise (e.g., Coca-Cola)

b) Business Format Franchise (e.g., McDonald's)

c) Manufacturing Franchise (e.g., Toyota)

d) Investment Franchise (e.g., real estate or stock brokerage).

What is a franchise with an example?

A franchise is a business model where a franchisee (individual or entity) licenses the rights to operate a brand's established business system. An example is Subway, where franchisees use the Subway brand, recipes, and support in exchange for fees and royalties, following the established business model.