Rana Daggubati reveals Baahubali producers borrowed Rs 400 crore at 24 per cent interest

The release of Baahubali: The Beginning in 2016 brought about a seismic shift in Indian cinema. Director SS Rajamouli's visionary creation not only transformed the Telugu film industry but also revolutionized the cultural and business revolution in the Indian film industry. 

The success of the Baahubali franchise revealed the untapped potential of the domestic box office market, challenging conventional notions of filmmaking and financing. Actor Rana Daggubati, who played a pivotal role in the series, recently shed light on the challenges faced by the filmmakers during the production process.

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“Three-four years ago, where was money in the movies coming from? It was either their (filmmaker’s) house or their property that was pledged to the bank, made on interest, and it comes back. We used to pay around 24-28 per cent interest. That’s the borrowing in films. For a film like Baahubali, a borrowing of Rs 300-400 crore at that interest,” shared Rana, while talking recently at the India Today conclave. 

He noted the financial risks and immense pressure involved in making the two-part epic series. The filmmakers had to navigate unprecedented borrowing and uncertainty. 

“Part 1 was a struggle. We spent twice over the highest collected film in Telugu. So no math ever made the justification of what we borrowed, how we made it. It was 180 crore plus borrowed at 24 per cent interest over five-and-a-half years. We shot a little bit of Baahubali 2 as well, so if this film didn’t work, we didn’t know what will happen,” he added.

The success of Baahubali: The Conclusion propelled the filmmakers beyond regional boundaries, ushering in a new era of "pan-India" filmmaking. This shift has influenced subsequent productions across the country, as filmmakers now strive to cater to diverse audiences and expand their reach.

Starring Prabhas in the lead, Baahubali 1 became a huge hit at the box office and created unprecedented demand for its second part, thanks to the million-dollar question, "Why did Kattappa kill Baahaubali?." But, it was Baahubali 2 that shook the Indian film industry by raking in over Rs 1000 crore in about 10 days creating a new box office benchmark.