In the last decade, India’s fitness industry has witnessed phenomenal growth and is projected to expand further in the future. In fact, as per a report published in Your Story, there are about 6 million users in India, who on an average spend about Rs. 30,000 annually on various fitness services.
With Indians becoming more fitness-conscious and looking for ways to reverse the effects of a sedentary lifestyle, the demand for gyms, fitness and wellness centres, etc. has also increased manifold. As a result, investing in the fitness industry has also presented itself as a lucrative business proposition.
Now, irrespective of whether you are looking to start a new fitness centre, or are looking to refurbish an existing one, the first aspect to take care of would be to secure financing to purchase the latest fitness equipment.
There are several viable options available when it comes to availing commercial fitness equipment financing in India. Following is a look at the equipment required, the types of loans you can choose from to finance the purchase of fitness equipment, and the most convenient option among them.
What are Some of the Equipment Required for a Fitness Centre?
Before applying for commercial fitness equipment financing, you will first have to chalk a budget to gauge the loan amount you need to borrow. Following is a list of the most popular commercial gym equipment that is a necessity for every fitness centre –
- Cross fit equipment
- Cross trainers/elliptical
- Gym station
- Shoulder builder
- Chess press machine
- Abs crunch machine, etc.
The cost of these equipment starts from the range of about Rs. 10,000 and can go up to a few lakhs. For instance, a motorised treadmill can cost you close to Rs. 2.5 Lakh.
Thus, to have a fully-equipped gym, you may have to shell out around Rs. 15 Lakh – Rs. 20 Lakh approximately on the purchase of these machines alone.
In this regard, you can apply for a business loan to finance your expenses.
Types of Loans You Can Avail for Fitness Equipment Financing
There are several types of loan that you can avail to finance the purchase of your fitness equipment. These include –
- Business equipment loans
These are unsecured loans that can be utilised to fund the purchase of equipment for any business venture, including that for a gym or fitness centre. You can avail a gym set up on EMI under this loan option, generally against a high rate of interest.
These options provide a high loan amount which can be enough to set up a fully-equipped fitness centre. However, these can mostly be availed by those who have a business vintage of at least 3 years, limiting its accessibility for those looking to start a new fitness centre.
- Gold loans
These loans are easily available, sans any stringent commercial fitness equipment financing eligibility criterion, as is imposed with other loan options. As its name suggests, this loan is a secured one and is availed by pledging your gold as collateral. It also has no end-use restrictions, and the amount can be utilised to fund the purchase of your fitness equipment, alongside meeting other financial requirements.
As a result, these make for one of the best ways to finance the purchase equipment purchase for the gym. The commercial fitness equipment financing repayment terms are simple too.
Following is a look at how gold loans, especially those availed from Rupeek Fintech Pvt. Ltd. can help you to fund the purchase of fitness equipment without hassle.
Gold Loans – Why are they Beneficial for Your Business?
When it comes to loans, there are a few important factors that you must look for to ensure that they are convenient to fund your business venture. These are –
- They must be easily accessible.
- They must have easy repayment terms.
- They must be suitable to fund your business without burdening your finances.
Gold loans from Rupeek, utilised for commercial fitness equipment financing can meet the above parameters effortlessly.
Some of the attractive features of these gold loans are as follows –
- Highest loan to value
Loan to value or LTV denotes the percentage of an asset’s total worth that can be availed as a loan by pledging it as collateral. By opting for a loan from the mentioned lender, you can avail the highest LTV against your gold, which can adequately cover the cost for the purchase of your fitness equipment.
- Loan at doorstep facility
With this unique feature in place, you can avail the loan without leaving the comfort of your house. You will simply need to apply online through the company’s app or website. Subsequently, a loan manager will be appointed to visit your house on the scheduled date, to complete the gold valuation and KYC registration processes. If everything is in order, your loan will be approved instantly.
- Instant disbursal
After completing the commercial fitness equipment financing online apply process, and receiving approval, the amount will be disbursed to your account instantly. From gold valuation to disbursal, it only takes 30 minutes to complete. Moreover, the loan manager will wait at your house until the time you receive the loan amount in your account. He/she will leave thereafter, with your gold collected in a GPS-traceable bag for safe transportation.
- Assured security of the pledged gold
Your gold is then transported to be deposited at the nearest partner bank’s safety vault located within 3 km of your house. It remains stored there until the time you can re-possess it, after complete repayment. During this time, your gold also remains insured, thus eliminating any risk of loss.
- Low interest rate and easy repayment terms
You can affordably repay the loan as it comes with one of the lowest interest rates. The repayment terms for this gold loan are also easy and hassle-free. Unlike other loans, you will only have to pay the monthly interest amount with this advance and repay the rest through bullet payment at the end of the loan tenure.
This helps to reduce your financial burden during the loan tenure substantially. Or, you can also consider deferring the entire repayment liability until the tenure’s end and pay at a go.
With minimal documentation, flexible tenure, and easy to satisfy eligibility criteria, these pre-approved gold loans are suitable for financing the purchase of your fitness equipment. Make repayments over a tenure of up to 6 months, which can be further extended up to 1 year.