Hotline: 1800 102 2007
Hotline: 1800 102 2007
Search Business Opportunities
2013-08-29

SIDBI, Franchise India tie-up to fund franchise businesses

Small business prime lender, Small Industries Development Bank of India (SIDBI) and Franchise India on Wednesday joined hands to cater to the funding needs of the franchise business model in the country.

Small business prime lender, Small Industries Development Bank of India (SIDBI) and Franchise India on Wednesday joined hands to cater to the funding needs of the franchise business model in the country.

 

"The programme has been instituted as a funding initiative to make the franchising model of business less daunting and more attractive for aspiring entrepreneurs in the country," said SIDBI and Franchise India in a joint statement. It aims to make financial support to emerging and established franchisers in the country, the statement added.

 

"It is an industry in which financing is very difficult because by and large the franchisees are not able to offer collateral... the intention is to devise a product which is based not essentially on the collateral but on the cash flows,” said N K Maini, Managing Director, SIDBI.

 

Maini said the bank will work in collaboration with franchisers to find potential franchisees to strengthen the ecosystem for this kind of business model in the country.

 

"Right now, we are in the process of piloting these products. In the next six months, we expect we would have gone through the pilot phase of the product. After that we will decide what is the quantum of finance that will be required for funding this industry," added Maini.

 

Currently, the franchising industry in the country is about 1.7 per cent of the GDP and is expected to grow to about 4 per cent within the next three to four years, he added. In developed countries, the figures are much higher. So, this is an industry which is going to grow, stated Maini.

 

"We hope the tie-up with SIDBI will make this segment even more attractive with solid financing models and products for entrepreneurs to rely on," said Gaurav Marya, Chairman, Franchise India, a franchise and retail solution provider.

 

Maini also said that the loan to franchisee will be given on market determined interest rate at an average of about 10-14 per cent.

Related opportunities
  • Quick Service Restaurants
    About Us: Kathi Express has discovered its own variety of spices..
    Locations looking for expansion Uttarakhand
    Establishment year 2003
    Franchising Launch Date 2003
    Investment size Rs. 2lac - 5lac
    Space required 100
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Dehradun Uttarakhand
  • Ethnic Stores
    About Us: Zingbi Lifestyle Pvt. Ltd operates within the dynamic fashion..
    Locations looking for expansion Tamil nadu
    Establishment year 2016
    Franchising Launch Date 2018
    Investment size Rs. 5lac - 10lac
    Space required 00
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Chennai Tamil nadu
  • Planning for a low cost business to start? SQAC franchise..
    Locations looking for expansion Goa
    Establishment year 2015
    Franchising Launch Date 2015
    Investment size Rs. 50 K - 2lac
    Space required -NA-
    Franchise Outlets 20-50
    Franchise Type Unit, Multiunit
    Headquater North Goa Goa
  • Furniture/Home Decor & Furnishing
    About Us : Bubblegum furniture, established in 2015, is a concept..
    Locations looking for expansion Maharashtra
    Establishment year 2015
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required 500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities

Free Advice - Ask Our Experts