August 26, 2025

What is a Franchise Loan and How to Use It for Business Expansion?

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What is a Franchise Loan and How to Use It for Business Expansion

Starting or expanding a business in India isn’t easy. Rising costs, competition, and a lack of working capital often stop many entrepreneurs from chasing their dreams. At some point, you may have thought of starting something alongside your job, maybe even a franchise, but also been confused- where will the money come from? 

Here’s where an Instalment Express comes in to solve your problem with a franchise loan.  

Whether you’re planning to open a new franchise outlet or expand your existing business, the right loan can help you take that step towards your dream without draining your savings. This allows you to earn money without a financial burden, while doing a job and running a business. It also helps you in living a great life, fulfilling all your needs. 

In this blog, we’ll explain to you what a franchise loan is, how it works in India, the documents you need, and how Instalment Express can help you get started quickly.

What is a Franchise Loan?

A franchise loan is designed to finance the startup costs and various expenses associated with launching a franchise business. This personalized franchise loan helps entrepreneurs start any business for smooth operations, just by: 

  • Paying the franchise fee 
  • Setting up the outlet (furniture, equipment, interiors) 
  • Hiring staff and covering initial salaries 
  • Marketing and promotions in the early months 

In short, it’s the fuel that powers your franchise journey with- fund franchise setup, secure working capital, and more. 

Why Consider a Loan for Franchise Business?

Franchising is rapidly growing in India. From food and beverages (think Domino’s or Subway) to retail, education, and healthcare. Franchising offers a proven business model and brand support; obtaining sufficient capital is the main challenge for franchisees. 

According to the Economic Times, the Indian franchise industry will soon touch USD 140-150 billion by 2028 

Here’s why a loan for a franchise business makes sense: 

  • Less personal financial burden: You don’t need to empty your savings. 
  • Structured repayment options: Pay in easy EMIs instead of upfront. 
  • Higher approval chances: Lenders trust franchise models because they come with brand backing. 
  • Opportunity to expand quickly: Add outlets without waiting years to save capital. 
  • Structured Support: Provide continuous guidance for your every query.

How to Apply for a Franchise Loan in India

At Instalment Express, we keep the process simple and hassle-free. Here’s how you can open a franchise with instant loan support: 

1. Fill Out the Franchise Loan Application Form 

Get your franchise loan in minutes with our quick, simple, and hassle-free loan procedure. 

2. Documents Required for Franchise Loan 

Below are some essential documents that speed up the approval process. 

  • Identity Proof: Aadhaar and PAN card. 
  • Address Proof: Utility bills, rental agreement, or passport. 
  • Income Proof: Job applicants need a salary slip of the last 3 months from application submission, bank statements, or profit and loss franchise statements. 
  • Employment Details: Employment ID- for job holder or business registration. 
  • Photograph: Recent passport-sized photos. 

3. Instant Loan Process 

Once you submit your franchise loan documents, our internal team will verify and process them. The funds are released within 48 hours, providing you with financial support. 

4. Ongoing Support 

We offer ongoing support from enquiry to loan disbursal, in real-time, providing guidance and assistance throughout your franchise loan journey.   

How a Franchise Loan Helps Expansion

Looking to start a fast-food franchise in your city, you’ll need an upfront investment of ₹30–40 lakhs. If you have only ₹10 lakhs, the gap may feel impossible to deal with. Instalment Express, a partner in your every financial issue, helps you get a franchisee finance plan that provides the necessary funds by simply opening your outlet. This allows you to generate revenue while repaying the loan in manageable EMIs. 

According to PwC– the lending market is projected to grow around 5 times from FY23, from INR 470-520 billion to around INR 2000-2500 billion. 

This lending approach helps you to capitalize on business opportunities at the right time.  

Key Benefits of Choosing Instalment Express for Business Loans

  • Fast process: You receive a quick loan disbursal amount- within 48 hours. 
  • Hassle-free documentation: Quick verification of documentation with no hidden fees or complications. 
  • Personalized solutions: Explicitly designed for franchise owners. 
  • Trusted partner: Receive ongoing support throughout your business journey. 

Starting or expanding a franchise in India is a great way to build wealth. At Instalment Express, we provide franchise loan solutions to empower Indian entrepreneurs with their every financial need, providing the financial support they need to grow their businesses. 

Ready to Expand Your Business with A Franchise Loan? 

Apply now for your franchise loan with Instalment Express and take the first step toward business expansion. 

Fast approvals. Hassle-free process. Funds in 48 hours. 

Your successful business journey starts here. 

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