Fullerton India Credit Co. Ltd. is Now SMFG India Credit Co. Ltd.

How to Start a Travel Agency Business In India?

Published on Nov 14, 2022Updated on Jan 29, 2024

How to Start a Travel Agency Business In India?

In India, travel and tourism are the largest work sectors of the economy. Because of the ever-increasing demand for travel agencies and tourism companies, this is a secure industry to invest in. Moreover, the post-pandemic period has motivated more people to explore new places. Thus, becoming an entrepreneur running a travel agency business in India is a great opportunity to make the most of.

For starting this initiative, you can turn to a business loan for a travel agency project from lending institutions. A business loan can help you manage your finances in a systematic way and can save you the trouble of having to put up your savings at risk. With a business loan, you can invest in supply chain, transport, marketing, customer service, vehicle maintenance, website development, and hotel management. A business loan for a travel agency empowers you to start serving your audience from Day 1.

This article talks about how to start a travel agency business in India with the help of a business loan.

5 Steps to Start a Travel Agency Business

If you’re new to this industry, here are 5 steps you should follow if you want to start your own travel agency business successfully in India:

Step 1: Decide the type of travel agency you want to run. You can choose to be a leisure trip agency, family vacation planning firm, or business travel company. You can decide to charge only for the vehicle, driver, and journey, or you can include hotel staying and tourism packages. You can also opt for seasonal travel offers or landscape-based provisions.

Step 2: Figure out the expenses involved and choose an online business loan to go for. The principal amount must be such that all your capital requirements for inventory needs and initial customer acquisition are fulfilled. From setting up an office space to funding your first few travel deals, you must be prepared financially to support your venture through a business loan for a travel agency.

Step 3: If you want to start any travel agency business in India, you must register with the Government of India under the Ministry of Tourism. Also, according to the mode of transport that you deal with, you must ensure you are aligned with the rules and regulations set down by various authorities. For instance, if you are to offer road travel services, then your vehicles and drivers must be registered under the Road/Regional Transport Office. If you are offering air travel booking services, you must adhere to the norms established by the International Air Transport Association. For railway bookings, the authority you have to turn to is the Indian Railway Catering and Tourism Corporation.

Step 4: You must apply for a GST number under the Government of India if you want to legally register and operate your company. For this, there are several documents you need to submit. Additionally, you have to ensure that you charge your customers and pay to the government an 18% tax on all tickets you book.

Step 5: Whatever logo and title you decide for your company; you must get it trademarked under the Trade Marks Registry body of India to protect your logo from being copied. This is your right as a business owner under the Trade Marks Act of 1999.

These 5 steps will get you started with your travel agency business. But to make it a successful one, you must invest in good talent, begin digital marketing campaigns, and start building your customer base. It all begins, however, with taking up a business loan.

Must Read: Business Loan vs Equity Financing

Online Business Loan for Starting Your Travel Agency

Documents Required

If you are applying for a business loan online, you must scan and upload the following documents:

  • Identity proof: PAN card and business licence
  • Address proof: Ration card, Aadhaar card, voter’s ID
  • Financial statements: Account details and transactions for the past 6 months
  • Income proof: ITR for the past 2 years, balance sheet, P&L statement, and CA certification
  • Other documents: Trade licence, sales tax certificate, NOC, sole proprietorship declaration, etc.

Interest Rates

Under lending institutions like SMFG India Credit, the business loan interest rates depend upon factors like location of business, turnover, stability and experience of applicant, collateral pledged, current debt, existing monetary obligations, net income, and creditworthiness. The interest rates are fairly competitive to equip you with maximum financial power. SMFG India Credit offers competitive interest rates and evaluates your eligibility as per our policy at the time of loan application.

Business Loan Calculator

Business loan EMIs are calculated based on the interest rate, principal amount, and tenure parameters. SMFG India Credit offers an online business loan calculator with which you can simply input your numbers and understand the monthly instalments needed.


With a good CIBIL score, you can opt for SMFG India Credit’s business loans. With a simple online application, you can avail a loan of up to INR 75 Lakhs* with comfortable tenures stretching up to 48 months. With SMFG India Credit, focus all your energy on growing your business easily.

* Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG India Credit's policy at the time of loan application. If you wish to know more about our products and services, please contact us

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