Loan for Photography Business
Loan for Photography Business
The photography business has become very popular in recent years owing to minimal capital requirement and very flexible work schedules. More and more people are starting a photography business as a full-time business or part-time enterprise. The process for starting a photography business is covered in detail in another article. In this article, we look at the types of loan available to start a photography business.
Investment Required to Start a Photography Business
Most startups in the photography business begin with an investment of about Rs.3 – Rs.10 lakhs in equipment like camera, laptop, lenses and lighting. Majority of the startups do not invest in a studio at the start and prefer to establish a studio one to two years into the business.
Some of the major equipment required for starting a photography business include:
- Camera – Rs.1 – Rs.3 Lakhs
- Lenses – Rs. 1 – Rs.3 Lakhs
- Laptop Rs. 0.5 – Rs. 1 Lakh
- Lighting and Misc. – Rs.0.5 0 Rs.2 Lakhs
In addition to the above, a photography business would require investment in terms of branding, advertising and working capital or Rs.1 – Rs.3 lakhs to begin earning a return on investment.
Return on Investment
The return on investment in the photography business is quick and high. Photographers able to shoot for weddings or events are easily able to earn a few lakhs per month and those photographers into shooting for magazines and websites also earn anywhere between Rs.50,000 to Rs.1 lakh per month with the right skill-set and experience.
With digital photography taking centre stage, the working capital requirement for a photography business is almost NIL, except for prints and album making. Hence, the return on investment in a photography business is very good – making bank loan an ideal platform for funding.
Bank Loan for Photography Business
MUDRA loan is an ideal type of loan for the starting up of a photography business. Any Indian Citizen who has a business plan for a non-farm sector income generating activity such as manufacturing, processing, trading or service sector and whose credit need is less than 10 lakh can approach either a Bank, MFI, or NBFC for availing of MUDRA loans under Pradhan Mantri Mudra Yojana (PMMY).
The loan is provided currently under three schemes in Pradhan Mantri MUDRA Yojana. The three schemes are as follows:
- Shishu: Loan of upto Rs.50,000.
- Kishor: Loans of above Rs.50,000 to Rs.5 lakhs.
- Tarun: Loans of above Rs.5 lakhs to Rs.10 lakhs.
To obtain MUDRA loan, the borrower can approach the branch of a bank or financial institution providing MUDRA loan with the following documents and information.
- MUDRA Loan Application
- Business plan
- Proof of Identities like PAN / Drivers License / Aadhaar Card / Passport and more.
- Residence proof like recent telephone bill/electricity bill or property tax receipt and more.
- Applicant’s recent photograph less than 6 months old
- Quotation of machinery or other items to be purchased
- Name of supplier or details of machinery or prices of machinery
- Proof of identity/address of the business like tax registration, business license and more.
- Proof of category like SC/ST/OBC/Minority, if applicable
It is important to note that there is no processing fee or collateral requirement for obtaining MUDRA loan.