For entrepreneurs in India planning to start an Aluminium Fabrication unit under the PMEGP scheme, a bank-ready project report is the cornerstone of loan approval. This page provides a detailed guide for a project costing between ₹5 lakh and ₹40 lakh (NIC code 25119), covering the subsidy structure, format, and key financials. A well-prepared project report includes CMA data, DSCR calculations, and 5-year projections, which are essential for convincing banks and KVIC of the venture's viability. PMEGP offers a subsidy of 25% (general category) to 35% (special categories) of the project cost, capped at ₹10 lakh for manufacturing units. Our report template ensures you meet all documentation requirements, from land and machinery details to working capital assessment. Whether you are in a metro or rural area, this guide helps you secure the 75% margin money loan component with ease.
Any individual above 18 years of age with at least 8th standard education is eligible. For projects above ₹10 lakh, a 10th pass is required. Groups, SHGs, cooperatives, and institutions can also apply. The applicant should not have availed any other government subsidy for the same project. For Aluminium Fabrication, prior experience or a certificate in welding/fabrication is advantageous but not mandatory. The project must be new; existing units are not eligible. Special category applicants (SC/ST/OBC/minorities/women/ex-servicemen/physically handicapped) get higher subsidy and priority.
For an Aluminium Fabrication unit, typical project cost includes: land (if purchased, but leasehold is acceptable), building (500-1000 sq ft), plant & machinery (welding machines, shearing machine, bending machine, drill, grinder, etc.), furniture, and working capital. For a ₹15 lakh project, machinery may cost ₹6-8 lakh, building ₹3-4 lakh, and working capital ₹3-5 lakh. PMEGP finances 75% of the project cost as term loan from banks; the remaining 25% is promoter's contribution (which includes subsidy). Subsidy is released to the bank after project implementation: 25% for general (₹3.75 lakh on ₹15 lakh), 35% for special (₹5.25 lakh). The loan repayment period is typically 5-7 years with a moratorium of 6-12 months.
Essential documents: Aadhaar, PAN, caste certificate (if applicable), education certificate, project report (with CMA data, DSCR, 5-year projections), land documents (lease deed or sale deed), property tax receipt, building plan approval, quotations for machinery, partnership deed (if firm), MOA (if company), and bank statement (last 6 months). For Aluminium Fabrication, also include a list of raw material suppliers (aluminium sheets, angles, welding rods) and potential customers (construction companies, interior decorators). Ensure all documents are self-attested and submitted in duplicate to the DIC or KVIC.
Every report is formatted to the exact standards required by Indian banks and government departments.
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Enter applicant details, select the scheme, set your loan amount.
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PMEGP format + aluminium fabrication economics combined correctly.
Subsidy/margin money for PMEGP auto-computed.
Project cost ₹5–40 Lakh, NIC 25119.
CMA, DSCR ≥ 1.50, 5-year projections.
Editable; Word + Excel exports; first report free.
Yes — PMEGP (15–35% margin-money subsidy) is commonly used for aluminium fabrication. The report is formatted to PMEGP requirements with subsidy/margin money shown.
15–35% margin-money subsidy — computed automatically in the means-of-finance and subsidy sections.
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For manufacturing units, the maximum subsidy is ₹10 lakh. For general category, subsidy is 25% of project cost (max ₹10 lakh). For special categories (SC/ST/OBC/minorities/women/physically handicapped/ex-servicemen/NER/Himalayan regions), it is 35% (max ₹10 lakh). The subsidy is back-ended and released after the unit is operational.
Yes, PMEGP is applicable in urban and rural areas. However, the subsidy percentage and project cost limits are same. Urban projects may have higher land costs, but the subsidy cap remains ₹10 lakh. Ensure your project report justifies the cost with local market demand.
GST registration is mandatory if your annual turnover exceeds ₹20 lakh (₹10 lakh for special category states). Since a fabrication unit typically sells to businesses, GST registration is recommended to claim input credit on raw materials. It also helps in getting MSME registration.
DSCR (Debt Service Coverage Ratio) is the ratio of net operating income to total debt service (principal + interest). Banks require a DSCR of at least 1.25 for PMEGP loans. A higher DSCR indicates better ability to repay. In your project report, calculate DSCR for 5 years using projected profit and loan repayment schedule.