The beauty parlour industry in India has seen significant growth in recent years, with an increasing demand for beauty and wellness services. With growing demand for advanced & professional beauty therapies there are opportunities for entrepreneurs to access loans for specialized equipment and training.
A beauty parlour loan is a specialised financing option designed to support the establishment, expansion, or renovation of beauty salons or parlours.
Comparison of Business Loan Interest Rates Offered by Top Banks/NBFCs
Let’s compare interest rates for your business loan from top banks and NBFCs essential for business owners to make informed decisions on cost-effective financing, considering variations based on loan types, business profiles, and creditworthiness.
| Bank/NBFCs | Interest Rate (p.a.) | Tenure |
|---|---|---|
| State Bank of India(SBI) | 10.00% – 22.50% p.a. | Up to 48 years |
| ICICI Bank | 12.50% – 13.60% p.a. | Up to 60 months |
| Axis Bank | 14.65% – 18.90% p.a. | Up to 60 months |
| RBL Bank | 12.25% – 25% p.a. | Up to 48 monts |
| IndusInd Bank | 13% to 22%. | Up to 48 months |
| Bajaj Finserv | 9.75% – 30% p.a. | Up to 96 months |
| IndiaLends | 10.25% p.a. onwards | Up to 60 months |
| Incred | 12% p.a. onwards | Up to 36 months |
| IIFL Finance | 11.25% – 33.75% p.a. | Up to 5 years |
| FlexiLoans | Starting at 12% p.a. | Up to 36 months |
| Tata Capital | Starting at 19% p.a. | Up to 60 months |
| Protium Loan | 18% p.a. onwards | Up to 72 months |
| mCapital | Starting at 24% p.a. | Starting at 24% p.a. |
| KreditBee | 12.24% – 29.88% p.a. | Up to 24 months |
| Money View | Starting at 15.96% p.a | Up to 60 months |
| Hero FinCorp | Up to 26% p.a. | Up to 5 years |
| NeoGrowth Finance | 19%-24% p.a. | Up to 7 years |
| Indifi Finance | 15% – 24% p.a. | Up to 36 months |
| ZipLoan | 12% – 18% p.a. (Flat ROI) | Up to 36 months |
| AYE Finance | 28% onwards | Up to 36 months |
| InCred | 20% onwards | Up to 48 months |
Note: The interest rates mentioned above are subject to change at the lenders’ discretion.
Graduate Personal Loans Eligibility Criteria
These loans cater specifically to individuals in the beauty and wellness industry, providing financial assistance for various purposes, including acquiring equipment, upgrading facilities, or launching a new beauty venture.
Lenders may consider factors such as the applicant’s business plan, creditworthiness, and the potential for the beauty parlour’s success when evaluating and approving these loans.
The eligibility for a loan for a beauty parlour can vary depending on several factors, including the lender, loan type, and your location. However, here’s a general overview of the common requirements:
Basic requirements:
- Age: Usually between 18 and 65 years old at loan maturity.
- Citizenship: You must be a citizen of the country where you’re applying for the loan.
- Financial documents: Proof of income (salary slips, ITRs, business financials), address proof, identity proof (PAN, Aadhaar).
- Business plan: A well-drafted business plan outlining your vision, target market, financial projections, and marketing strategies is crucial for convincing lenders.
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Different Schemes Offering Loans for Beauty Parlours
Several schemes offer loans for beauty parlours in India, catering to different needs and requirements. Here are some prominent options to consider:
Bhartiya Mahila Bank (BMB) – Shringaar
BMB Shringaar is a business loan scheme offered by Bharatiya Mahila Bank (BMB) to women entrepreneurs who want to start or expand a beauty parlour, salon, or spa business. The scheme offers loans up to ₹1 crore with flexible repayment terms and competitive interest rates.
- Loan Amount: Up to ₹1 crore.
- Interest Rate: Subsidised interest rates, currently hovering around 4% per annum.
- Repayment Tenure: Varies depending on the loan amount and project requirements.
- Additional Support: Skill development training
Business guidance
Eligibility:
- Age: 18 to 55 years.
- Gender: Women only.
- Family income: Less than Rs. 1,50,000 per annum.
- Residence: Permanent resident of Karnataka.
- No prior loan defaults.
- Entrepreneurship Development Program (EDP) training mandatory.
Cent Kalyani Scheme – Central Bank of India
Offered by the Central Bank of India, it provides business loans with flexible repayment options for women entrepreneurs.
- Loan Amount: Up to Rs. 10 lakhs for micro and small enterprises.
- Interest Rate: Concessionary rates compared to standard business loans, currently starting at MCLR + 0.25% up to Rs. 10 lakhs and MCLR + 0.50% for above Rs. 10 lakhs.
- Repayment Tenure: Flexible tenure based on the loan amount and project requirements.
- Additional Support: Additional interest concession of 0.25% if the account is rated by an external agency.Potential access to skill development training and business guidance support.
Eligibility:
- Open only to women entrepreneurs (excluding individuals engaged in trading activities).
- Must be at least 18 years old at the time of loan application.
- Must be an Indian citizen or a Permanent Resident of India.
Steps to Apply For Loan for a Beauty Parlour
Launching a beauty parlour is exciting, and securing a loan to make it a reality can seem daunting. Here’s a streamlined guide to help you navigate the process:
- Prepare Documentation: Gather necessary documents, including business registration, financial statements, and personal identification.
- Assess Loan Needs and Eligibility: Determine the exact amount required for equipment, renovation, or business expansion.Review and improve your credit score, as it influences loan approval and interest rates.
- Apply Online or In-Person: Submit the loan application through the chosen lender’s online platform or visit the branch to complete the application process.
- Wait for Approval: Allow time for the lender to assess your application; this may involve a review of your business plan and financial documents.
- Review Loan Terms: Carefully examine the approved loan terms, including interest rates, repayment schedule, and any associated fees.
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