MUDRA Kishor · Food Processing

MUDRA Kishor Banana Chips Unit Project Report

Bank-ready banana chips unit report under MUDRA Kishor — project cost ₹3–25 Lakh, subsidy, CMA data, DSCR ≥ 1.50 and 5-year projections.

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About This Scheme

If you are planning to start a Banana Chips manufacturing unit in India and seeking MUDRA Kishor loan under NIC 10306, a bank-ready project report is your most critical document. This report is not just a formality—it is a comprehensive financial blueprint that convinces lenders of your project's viability. For a Banana Chips unit with a project cost between ₹3 lakh and ₹25 lakh, the report must include detailed CMA (Credit Monitoring Arrangement) data, Debt Service Coverage Ratio (DSCR) calculations, and 5-year financial projections (profit & loss, balance sheet, cash flow). It also covers technical aspects like machinery specifications, raw material sourcing (bananas from local markets or farms), production capacity, and working capital requirements. A well-prepared project report increases your chances of loan approval under MUDRA Kishor, which offers collateral-free loans up to ₹20 lakh. Additionally, you may be eligible for capital subsidy under schemes like PMFME (PM Formalisation of Micro Food Processing Enterprises) or state-specific food processing subsidies. This page provides a ready-to-use format, key financial ratios, and step-by-step guidance to create a robust project report that meets bank norms.

MUDRA Kishor
Scheme
Banana Chips Unit
Business
₹3–25 Lakh
Project Cost
10306
NIC Code
₹50K–₹5L
Coverage
≥ 1.50
DSCR (bank norm)
PDF · Word · Excel
Formats
₹499 / report
Price

Eligibility for MUDRA Kishor Banana Chips Unit

To avail MUDRA Kishor loan for a Banana Chips unit, you must be an Indian entrepreneur (individual, partnership, or private limited company) with a viable business plan. The project cost should be between ₹3 lakh and ₹25 lakh, with MUDRA Kishor covering loans above ₹10 lakh and up to ₹20 lakh (for amounts above ₹20 lakh, MUDRA Tarun applies). There is no collateral requirement under CGTMSE coverage. The business must be classified under NIC 10306 (Processing and preserving of fruits and vegetables). Prior experience in food processing is not mandatory, but a basic food safety license (FSSAI) is required. Additionally, you should have a bank account and GST registration (if turnover exceeds ₹40 lakh). The project report must demonstrate technical feasibility and financial viability, including a minimum DSCR of 1.25 and a debt-equity ratio not exceeding 3:1.

Project Cost & Financing Structure

For a Banana Chips unit, typical project cost components include: land & building (if not rented), plant & machinery (banana slicer, frying kettles, de-oiling machine, packaging unit), preliminary expenses, and working capital (raw bananas, oil, salt, packaging material). A sample breakup for a ₹15 lakh project: machinery ₹6 lakh, working capital ₹7 lakh, other expenses ₹2 lakh. Under MUDRA Kishor, the loan amount can be up to 80% of project cost (max ₹20 lakh), with promoter contribution of 20%. For units eligible under PMFME, a capital subsidy of 35% (up to ₹10 lakh) is available, reducing the loan requirement. The repayment period is typically 3-5 years with a moratorium of 6 months. Interest rates vary from 9% to 14% depending on the bank and your credit profile. Ensure your project report includes a realistic repayment schedule and DSCR calculation.

Documents Required for MUDRA Kishor Banana Chips Loan

To apply for a MUDRA Kishor loan for your Banana Chips unit, you need to submit: 1) KYC documents (Aadhaar, PAN, Voter ID), 2) Business proof (GST registration, FSSAI license, MSME Udyam registration), 3) Project report with CMA data, 4) Bank statements of last 6 months, 5) Income tax returns of last 2 years (if applicable), 6) Quotations for machinery and raw materials, 7) Property documents if land/building is owned, 8) Rent agreement if premises are rented. For subsidy under PMFME, additional documents like DPR (Detailed Project Report), proof of training (if any), and bank account details are needed. Ensure all documents are self-attested and organized in a file. Many banks also require a photograph and a brief business profile. Having a well-prepared project report with all financial projections ready will speed up the loan processing.

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

  • banana chips unit owner eligible under MUDRA Kishor (₹50K–₹5L)
  • Valid Aadhaar & PAN
  • Udyam (MSME) registration recommended
  • New or existing banana chips unit
  • Age 18+
  • No prior bank default
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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?

MUDRA Kishor format + banana chips unit economics combined correctly.

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Project cost ₹3–25 Lakh, NIC 10306.

CMA, DSCR ≥ 1.50, 5-year projections.

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Frequently Asked Questions

Can I fund a banana chips unit with MUDRA Kishor?

Yes — MUDRA Kishor (₹50K–₹5L) is commonly used for banana chips unit. The report is formatted to MUDRA Kishor requirements with subsidy/margin money shown.

How much subsidy under MUDRA Kishor?

₹50K–₹5L — computed automatically in the means-of-finance and subsidy sections.

How do I get it?

Register free, pick the scheme & loan amount, and the full bank-ready report is drafted for you (CMA data, DSCR, 5-year projections) in under 60 seconds. First report free; clean exports ₹499.

What is the maximum loan amount under MUDRA Kishor for a Banana Chips unit?

Under MUDRA Kishor, the loan amount ranges from ₹10 lakh to ₹20 lakh. For project costs between ₹3 lakh and ₹10 lakh, MUDRA Shishu applies. For costs above ₹20 lakh and up to ₹25 lakh, MUDRA Tarun covers loans up to ₹10 lakh (total project cost up to ₹25 lakh). So for a Banana Chips unit with project cost ₹15 lakh, you can avail up to ₹12 lakh under MUDRA Kishor (80% financing).

Is there any subsidy available for Banana Chips manufacturing under MUDRA?

MUDRA loans do not provide direct subsidy. However, if your unit is registered under PMFME (PM Formalisation of Micro Food Processing Enterprises), you can get a capital subsidy of 35% of the eligible project cost, up to ₹10 lakh. This subsidy is available for individual micro food processing units. Additionally, some states offer their own food processing subsidies. Check with your state's food processing department for specific schemes.

What is the typical DSCR required for MUDRA Kishor loan approval?

Banks generally require a minimum Debt Service Coverage Ratio (DSCR) of 1.25 for MUDRA Kishor loans. This means your net operating income should be at least 1.25 times your total debt obligations (principal + interest) for each year of the loan. A higher DSCR (e.g., 1.5) improves your chances of approval. Your project report should include a 5-year DSCR calculation.

Can I get a MUDRA Kishor loan for a Banana Chips unit without collateral?

Yes, MUDRA Kishor loans are collateral-free under the CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) scheme. The government guarantees up to 85% of the loan amount (for loans up to ₹5 lakh) and 75% for loans above ₹5 lakh up to ₹20 lakh. This means you do not need to pledge any assets, making it easier for new entrepreneurs.

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