Fashion Industry Business Loan

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Finally, 2019 is the year in which India will position itself as a world fashion center. Programs such as Skill India, Make India, and Digital India has unveiled innovative changes in the policy changes for business and industry in general. This was confirmed by McKinsey’s “State of Fashion 2019” survey. According to the survey, the manufacturing sector is growing due to higher incomes of the people earnings. India is becoming a central focus in the fashion business. Also, Indian people look for quality and price. Therefore establishing a customer base in India is challenging. Still close to 300 global brands are eyeing India to expand their business. Certainly, domestic business people will have a better chance and you can plan to start a fashion business in India at the earliest bringing in latest fashion but at a nominal price. Textiles and clothing account for 14% in the whole production.

About the industry 

Fashion business contributes to the huge source of income of the country. According to the latest report, on average, 60% of the income of an Indian shopping center is obtained from the fashion stores. With a growing population, this percentage should increase significantly. Globally, fashion houses are expected to change their strategy and create more “adventure stores” with new formats that will attract the next generation of technology experts. At the same time, the Indian business is also ready to offer a broader product mix, global brands and traders are investing in the market to develop their system and augment productivity. Eventually, only brands that adopt technology and adapt to the latest trends will increase their profits and the others might fall down 

Business models available in the Fashion industry

A fashion company can be configured in different models. The knowledge, experience, and aspirations of promoters should be considered when defining the economic model. The prominent business models in the fashion industry include the following.



The designers make the design of garments that aesthetically connect with the customer. These people are often hired to create dresses based on the occasions. However, stylists, advise on the type of clothing that should be used in diverse situations.


Small stores that sell a single clothing line from one or many stylists are called boutique. Fashion boutiques are usually aimed at a niche audience, and the large garments retail chain is aimed at larger buyers.

Retail Online

India is witnessing a sea change in the E-commerce business and customers are getting used to purchase clothes online. The success stories of websites including, YepMe, Jabong, and Myntra is a testament for such victory. As with the fashion boutiques that grow into big clothing chains, there are still many opportunities for making simple online sales sites.

Additionally, creating an exclusive website, fashion retailers will achieve selling through online sites such as Amazon, Flipkart, and Snapdeal, etc.

How to set the business 

We will provide you with an instant business loan but you need to know where to start and how to proceed. To begin with, you must first set up a commercial unit and open a current account in the bank on behalf of the company. This can be skipped at first until you make huge returns. You can establish this business either as a partnership or sole proprietorship or even a Limited Liability Company (LLP).

One who wants to start a styling can go for a Proprietorship model initially not on full time and can make up to 10 lakhs per year. For individuals who want to start a full-fledged fashion business or a boutique, should go for limited liability Company as it facilitates business growth, involves partners and easily raises capital.

Loan Requirement in the Fashion Sector 

The initial capital in every business is invested by the promoter. Likewise, most fashion stores get fund from the organizer. However, if substantial funding is needed to be required for the establishment of the store, then the loan is the best option. Private lending organizations can provide short-term loans to get the interior design of the boutique done, as well as working capital to finance a portion of the stakes. There are several features that can be offered by us and you can stay worry-free to start your fashion business. 

Tax records

Those who work in the industry and do not sell clothes, but are designers or stylists may not necessarily apply for registration of VAT. Registration of the service tax is also mandatory for all those who provide taxable services with income more than 9 lakhs per year. However, clothing sales in India require the registration of VAT with the local VAT office. Also, note that for seamless clothing VAT exemption is offered and registering VAT is not required.

Who is qualified for a business loan for Fashion Business

After understanding all of the above, we know that you would like to start the application process for a commercial loan. Now, we will let you the admission criteria for setting up a fashion business in India in accordance with Indian legal formalities. 

  • You should be above 21 years of age
  • Your monthly turnover should be at least ₹2,00,000
  • You should have been in business for at least 12 months from the date of incorporation

Documentation work 

  1. Documents Required                  
  • Personal KYC – PAN Card

  1. Residential Address Proof (Any One)
  • Rent Agreement
  • Driving License
  • Voter ID
  • Ration Card
  • Passport

  1. Last 6 months Current Account Bank Statement in Net Banking PDF format

  1. Business KYC (Any One)
  • GST Registration Certificate
  • Shops and Establishment Certificate

FlexiLoans Features

  • You can be sure that our lending process is very simple and paperless. All is required is to fill out our online form and download the required proofs.
  • Do not wait for more than 2 business days to know understand loan status
  • We do not ask for a guarantee and we follow a transparent process. There is no hidden clause in any way.
  • You can know the interest rates using the EMI calculator from our site. It’s simple and you do not have to wonder how much you should pay.
  • Come with your business plan and talk with us to get the maximum loan amount.

With these exceptional features, we are friendly with the customer and accompany them at every step of the way to make their business a success.

Click here to apply for a business loan for fashion business.