MUDRA Tarun | PMEGP | Stand-Up India | MSME Term Loan

Project Report for Gym & Fitness Centre — Ready in 60 Seconds

Bank-ready project report for gym, fitness centre, yoga studio, or health club. Covers MUDRA Tarun (up to ₹10L), PMEGP (25–35% capital subsidy), and Stand-Up India for women entrepreneurs. Accepted by SBI, PNB, Bank of Baroda, and all nationalized banks.

जिम / फिटनेस सेंटर — बैंक लोन प्रोजेक्ट रिपोर्ट 60 सेकंड में तैयार

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About This Scheme

The fitness and wellness industry in India is growing at 18–25% CAGR, expected to reach ₹90,000 crore by 2027. With rising health awareness, urban millennials, and government Fit India Movement pushing gyms and fitness centres into mainstream MSME financing, this sector now gets active support from both MUDRA (service sector) and PMEGP (service enterprise, up to ₹25L). A well-run gym with 100–200 members generates predictable monthly recurring revenue from memberships — a feature banks love in project reports. The project report must show equipment cost (free weights, cardio machines), interior build-out, membership fee structure, and month-wise member acquisition ramp-up. DSCR is comfortable from Year 1 for gyms in residential localities with 80+ members.

Up to ₹10L
MUDRA Limit
25 – 35%
PMEGP Subsidy
18% CAGR
Industry Growth
Not Required
Collateral

What Your Report Includes

Every report is formatted to the exact standards required by Indian banks and government departments.

  • Executive Summary with scheme-specific highlights
  • Promoter profile & KYC details
  • Business description & market analysis
  • Machinery & equipment list with quotations
  • Raw material & manpower planning
  • 5-year financial projections (P&L, Balance Sheet, Cash Flow)
  • CMA Data in IBA-approved format
  • Working Capital Assessment — Tandon Method II (RBI norms)
  • Loan repayment schedule with DSCR ≥ 1.25
  • SWOT analysis
  • Declarations & undertakings as per scheme guidelines

Eligibility Checklist

  • Indian citizen aged 18–55 years with basic fitness training or management background
  • For MUDRA Tarun: service sector enterprise; gym equipment as fixed assets; no collateral
  • For PMEGP (service): new fitness centre; 8th pass minimum; project cost ≤ ₹25L
  • For Stand-Up India: women, SC or ST entrepreneur; 51%+ ownership
  • Commercial space lease agreement required (minimum 1,000 sq ft for a basic gym)
  • MSME Udyam registration and municipal business license required before loan disbursement
  • Yoga studios, dance/aerobics classes, and martial arts centres also eligible under service MSME
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A complete 14-section project report — the same document your bank officer will read. Every table below is real: the repayment schedule, the DSCR, the CMA workings, the balance sheet. Generate yours free, then pay ₹499 for the clean copy.

Project cost
₹10,00,000
Term loan sought
₹8,00,000
Promoter's margin
₹2,00,000 (20%)
Average DSCR
5.87 (norm ≥ 1.25)
Break-even
62% of Year-1 sales
Employment
3 existing + 3 new

Project Report

Sharma Electronics & Repair Services

Consumer electronics repair, servicing & spare-parts retail

Vaishali Nagar, Jaipur, Rajasthan

SchemeMUDRA Tarun
Loan applied for₹8,00,000
Total project cost₹10,00,000
ConstitutionSole Proprietorship

Submitted to the Branch Manager · Punjab National Bank, Vaishali Nagar, Jaipur

01

Executive Summary

Name of the unit
Sharma Electronics & Repair Services
Constitution
Sole Proprietorship
Promoter
Suresh Sharma (34 years)
Address of unit
Shop No. 12, Ground Floor, Vaishali Nagar, Jaipur — 302021
Nature of activity
Consumer electronics repair, servicing & spare-parts retail
NIC code
9521 — Repair of consumer electronics
Scheme applied under
Pradhan Mantri MUDRA Yojana — Tarun
Total project cost
₹10,00,000
Term loan requested
₹8,00,000 (80%)
Promoter's contribution
₹2,00,000 (20%)
Repayment
60 monthly instalments @ 10.50% p.a.

The unit has been in operation since 2019 and currently services 20–25 jobs a day from a 350 sq.ft. ground-floor shop, with a recorded customer base of 600+ households in the Vaishali Nagar catchment. The promoter proposes to expand the workbench capacity, add board-level diagnostic equipment and carry a spare-parts inventory so that 70% of repairs can be completed same-day instead of the present 3-day turnaround.

The project is assessed at a cost of ₹10.00 lakh, financed by a ₹8.00 lakh MUDRA Tarun term loan and ₹2.00 lakh of promoter's own contribution (20%). At the projected turnover the unit services its debt 5.87 times over on average, against the 1.25 minimum, and breaks even at 62% of Year-1 sales — leaving substantial cushion against a demand shortfall.

Recommendation: the proposal is technically feasible, commercially viable and financially sound. It is recommended for sanction of a term loan of ₹8.00 lakh repayable in 60 monthly instalments.

05

Project Cost

Cost of the project
ParticularsBasisAmount (₹)
Renovation & civil work200 sq.ft. additional area, electrical, ESD flooring1,20,000
Diagnostic & repair equipmentAs per quotations — Annexure IX2,40,000
Computers, software & service tools2 systems, billing software, tool kits80,000
Furniture, air-conditioning & display fixturesCounter, racks, 1.5 T AC60,000
Margin money for working capitalStock, receivables & operating cash5,00,000
Total project cost10,00,000

A 5% contingency is built into the civil and equipment estimates. All capital items are supported by three quotations each.

06

Means of Finance

Means of finance
SourceAmount (₹)% of project cost
Promoter's own contribution2,00,00020.00%
Term loan under MUDRA Tarun8,00,00080.00%
Subsidy / margin money grantNil—
Total10,00,000100.00%

Promoter's contribution is held in Savings A/c No. XXXXXX4417 with Punjab National Bank, Vaishali Nagar (statement enclosed). Debt–equity at inception is 4.00 : 1, improving to 1.65 : 1 by the end of Year 1.

For PMEGP, PMFME, NABARD and state-subsidy proposals this section additionally carries the margin-money subsidy workings, the subsidy-adjusted repayment and a second DSCR computed net of subsidy.

07

Machinery & Equipment

Plant, machinery and equipment proposed
EquipmentQtyRate (₹)Amount (₹)
BGA rework station with preheater195,00095,000
Digital storage oscilloscope with probes145,00045,000
Universal IC programmer135,00035,000
Ultrasonic PCB cleaning unit122,00022,000
Soldering / desoldering stations38,00024,000
Precision tool kits & ESD workbench29,50019,000
Total2,40,000

Suppliers: Fine Tools India (Jaipur), Sagar Electronics (Delhi), Techno Instruments (Jaipur). Quotations enclosed at Annexure IX. Delivery within 30 days of sanction; installation by the supplier at no extra cost.

09

Profitability Projections (5 Years)

Projected profit & loss account (₹ in lakh)
ParticularsYear 1Year 2Year 3Year 4Year 5
Service & repair income24.0028.3232.5736.8041.22
Sale of spares & accessories9.6011.3313.0314.7316.49
Total revenue33.6039.6545.6051.5357.71
Cost of spares & materials (45%)15.1217.8420.5223.1925.97
Gross profit18.4821.8125.0828.3431.74
Salaries & wages6.727.267.848.479.14
Rent1.441.511.591.671.75
Power & fuel0.720.780.830.890.95
Repairs & maintenance0.300.330.360.390.42
Marketing & business promotion0.360.400.440.480.52
Administrative & miscellaneous0.600.660.720.780.84
Insurance0.120.130.140.150.16
Total operating expenses10.2611.0711.9212.8313.78
EBITDA8.2210.7413.1615.5117.96
Depreciation (WDV, as per IT Act)0.860.660.520.420.35
EBIT7.3610.0812.6415.0917.61
Interest on term loan0.780.640.480.310.11
Profit before tax6.589.4412.1614.7817.50
Income tax (as applicable)0.300.620.951.351.80
Profit after tax6.288.8211.2113.4315.70

Revenue grows 18%, 15%, 13% and 12% over the five years, against 22% achieved by the unit in the last audited year. Capacity utilisation moves from 72% to 91%; the projections do not assume any increase in service rates.

10

Repayment Schedule & DSCR

Loan amount
₹8,00,000
Rate of interest
10.50% p.a. (reducing balance)
Tenure
60 months
Moratorium
Nil
Equated monthly instalment
₹17,195
Total interest over the tenure
₹2,31,707
Year-wise repayment schedule (₹)
YearOpening balancePrincipal repaidInterestTotal outgoClosing balance
18,00,0001,28,40477,9372,06,3416,71,596
26,71,5961,42,55563,7872,06,3415,29,041
35,29,0411,58,26548,0772,06,3413,70,776
43,70,7761,75,70630,6352,06,3411,95,070
51,95,0701,95,07011,2722,06,341Nil
Total8,00,0002,31,70710,31,705
Debt service coverage ratio (₹ in lakh)
ParticularsYear 1Year 2Year 3Year 4Year 5
Profit after tax6.288.8211.2113.4315.70
Add: depreciation0.860.660.520.420.35
Add: interest on term loan0.780.640.480.310.11
Cash available for debt service (A)7.9210.1212.2114.1616.16
Principal repayment1.281.431.581.761.95
Interest0.780.640.480.310.11
Total debt service (B)2.062.072.062.072.06
DSCR (A ÷ B)3.844.895.936.847.84

Average DSCR over the tenure: 5.87. The minimum acceptable to banks is 1.25; the unit crosses that threshold even if Year-1 revenue falls 60% short of projection.

11

Balance Sheet & Cash Flow Projections

Projected balance sheet (₹ in lakh)
ParticularsYear 1Year 2Year 3Year 4Year 5
LIABILITIES
Capital account (net of drawings)4.087.5012.1117.7424.44
Term loan — long-term portion5.293.711.95——
Term loan — current maturity1.431.581.761.95—
Sundry creditors (30 days)1.261.491.711.932.16
Other current liabilities & provisions0.300.350.400.450.50
Total12.3614.6317.9322.0727.10
ASSETS
Net fixed assets4.143.482.962.542.19
Stock of spares (45 days)1.862.202.532.863.20
Sundry debtors (10 days)0.921.091.251.411.58
Cash & bank balance5.447.8611.1915.2620.13
Total12.3614.6317.9322.0727.10
Cash flow statement — Year 1 (₹ in lakh)
SourcesAmountApplicationsAmount
Profit after tax6.28Capital expenditure5.00
Depreciation0.86Increase in stock1.86
Increase in creditors & provisions1.56Increase in debtors0.92
Term loan drawn8.00Repayment of term loan1.28
Promoter's capital introduced2.00Drawings4.20
Closing cash & bank5.44
Total18.70Total18.70
12

CMA Data & Working Capital Assessment

Working capital is assessed under the Tandon Committee Method II, the basis used by banks for limits up to ₹5 crore. The workings below are drawn from the Year-1 projections above.

Maximum permissible bank finance (₹ in lakh)
ParticularsAmount
Stock of spares1.86
Sundry debtors0.92
Cash & bank balance5.44
Total current assets (TCA)8.22
Sundry creditors1.26
Other current liabilities & provisions0.30
Current maturity of term loan1.43
Other current liabilities (OCL)2.99
Working capital gap (TCA − OCL)5.23
25% of TCA — stipulated margin2.06
Maximum permissible bank finance (Method II)3.18

No cash-credit limit is sought in this proposal; the assessment is presented because bank officers ask for it. Were the limit of ₹3.18 lakh availed, the current ratio would stand at 1.33 — above the 1.25 stipulated by IBA.

CMA statements included in the full report

  • Form I — particulars of existing and proposed limits
  • Form II — operating statement (actuals and projections)
  • Form III — analysis of the balance sheet
  • Form IV — comparative statement of current assets and current liabilities
  • Form V — computation of maximum permissible bank finance
  • Form VI — fund flow statement
  • Ratio analysis and holding-period statement
13

Key Ratios, Break-Even & SWOT

Key financial indicators
RatioYear 1Year 2Year 3Year 4Year 5Bank norm
Current ratio2.753.263.874.519.36≥ 1.25
Debt–equity ratio1.650.710.310.11Nil≤ 3.00
DSCR3.844.895.936.847.84≥ 1.25
Net profit margin18.7%22.2%24.6%26.1%27.2%—
Interest coverage9.415.826.348.7160.1≥ 2.00
Break-even analysis — Year 1 (₹ in lakh)
ParticularsAmount
Fixed costs (salaries, rent, admin, depreciation, interest)10.88
Variable costs (materials, power, maintenance)16.14
Contribution (revenue − variable costs)17.46
P/V ratio51.96%
Break-even sales20.94
Break-even as % of Year-1 revenue62.3%
Cash break-even as % of Year-1 revenue57.4%

Strengths

  • Nine years of promoter experience in the same line of activity; the unit is already running and profitable.
  • Only board-level repair capability in a 3 km catchment of 12,000 households.
  • 85% repeat customers — revenue is recurring rather than one-off.
  • Low fixed-cost base; the shop is rented at ₹12,000 a month with no owned-premises burden.

Weaknesses

  • Technical dependence on the proprietor for complex board-level work.
  • Informal book-keeping to date; a computerised billing and stock system is part of this project.
  • Brand recognition limited to the immediate locality.

Opportunities

  • Right to Repair framework improving access to genuine spares for independent repairers.
  • About 3,000 new households entering the catchment within 1 km.
  • Institutional tie-ups — schools, clinics and offices for annual maintenance contracts.

Threats

  • An authorised brand service centre opening within the catchment.
  • Import-duty-led increases in spare-parts prices.
  • Attrition of trained technicians to larger service chains.
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Why Use Cred for This Report?

Membership-based recurring revenue model: monthly members × membership fee — clearly shows stable repayment capacity

Equipment cost matrix: treadmills, cycle ergometers, lat pulldown, free weights, mirrors, flooring — current market prices

Member ramp-up projection: 30 members Month 1 → 100 by Month 6 → 150+ by Year 2 — realistic and bank-accepted

PMEGP service category: ₹25L project limit, 25% general subsidy — means of finance correctly structured

Air conditioning, CCTV, and locker room costs included — often missed in DIY project reports

Stand-Up India variant: 51% ownership certification and business plan format for women-led gyms

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Frequently Asked Questions

Can I get a MUDRA loan to open a gym?↓

Yes. Gyms and fitness centres are classified as service sector micro enterprises, fully eligible for MUDRA Tarun (₹5–₹10 lakh). You need: project report with equipment list and projections, Aadhaar, PAN, shop lease agreement, and Udyam registration. No collateral is required. MUDRA Tarun is best suited for a basic gym with 8–12 machines. For a premium gym with ₹20L+ investment, PMEGP or MSME term loan with CGTMSE coverage is more appropriate.

How much does it cost to set up a gym?↓

Basic gym (500–800 sq ft, 8–12 machines): ₹5–₹8L — flooring ₹50K, 2 treadmills ₹1.2L, 2 exercise cycles ₹60K, free weight set ₹80K, lat pulldown ₹70K, interior ₹1.5L, AC ₹80K. Mid-range gym (1,000–1,500 sq ft): ₹12–₹20L with additional cardio machines and separate weights area. Premium gym (2,000+ sq ft with steam/sauna): ₹25–₹60L. The project cost should match actual quotations — banks verify against standard market prices for gym equipment.

How much revenue can a gym earn per month?↓

A basic gym with 100 members at ₹700/month membership = ₹70,000/month. With personal training sessions (₹500–₹1,000/session) and supplement sales: total ₹90,000–₹1.2L/month. A 150-member mid-range gym at ₹1,200/month = ₹1.8L + personal training revenue = total ₹2.2–₹2.8L/month. After rent (₹15–₹30K), trainer salary (₹15–₹25K), electricity (₹5–₹10K), and EMI (₹20–₹40K), monthly net profit is ₹50,000–₹1.5L. Profitable gyms maintain 70%+ capacity utilization.

Is a yoga studio eligible for PMEGP loan?↓

Yes, yoga studios, dance academies, aerobics centres, and martial arts training institutes are all classified as service enterprises under PMEGP. Maximum eligible project cost is ₹25 lakh (service sector). Capital subsidy is 25% for urban (35% for SC/ST/women/minorities). Requirements: new enterprise (not existing), 8th pass minimum, and Aadhaar/PAN. DIC interview and site verification are required. Studios near residential areas in tier-2 cities get faster DIC clearance.

Do I need any certification to open a gym in India?↓

There's no mandatory national certification to open a gym, but having certified trainers (ISSA, ACE, FITNESS INDIA certification) significantly improves member trust and is mentioned positively in project reports. Municipal business license (Gumashta/Shop Act) is mandatory. Some states require a sports club registration. If you hire certified personal trainers, mention their qualifications in the promoter profile section of your project report — it strengthens the application.

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Ahmedabad, Gujarat

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Bhopal, MP

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