Handicrafts — Bank Loan & Subsidy

Bangle Manufacturing Unit Project Report

Bank-ready bangle manufacturing project report — project cost ₹2–20 Lakh, CMA data, DSCR ≥ 1.50 and 5-year projections for PM Vishwakarma, PMEGP, MUDRA Kishor.

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About This Scheme

Starting a bangle manufacturing unit in India is a promising venture under NIC code 32120, especially with government schemes like PM Vishwakarma (up to ₹1 lakh loan at 5% interest), PMEGP (subsidy up to 35%), and MUDRA Kishor (₹50,000–₹5 lakh). A bank-ready project report is critical for loan approval. This report outlines the project cost (typically ₹2–20 lakh), machinery list, raw material sourcing, CMA data, DSCR (minimum 1.25), and 5-year financial projections including profit and loss, cash flow, and balance sheet. It also covers working capital needs, repayment schedule, and collateral requirements under CGTMSE (up to ₹2 crore without collateral). Whether you are a first-generation entrepreneur or an artisan under PM Vishwakarma, this report helps you present a viable business plan to banks like SBI, PNB, or Canara Bank.

₹2–20 Lakh
Typical Project Cost
32120
NIC Code
PM Vishwakarma
Best-fit Scheme
manufacturing
Segment
≥ 1.50
DSCR (bank norm)
60 seconds
Turnaround
PDF · Word · Excel
Formats
₹499 / report
Price

Eligibility Criteria for Bangle Manufacturing Loan

To qualify for a bank loan under PMEGP or MUDRA, you must be an Indian citizen aged 18+ with at least 8th standard education (for PMEGP). For PM Vishwakarma, you need to be a traditional artisan in a family of artisans. No prior default history is allowed. The project must be new (not expansion) for PMEGP. For MUDRA Kishor, existing units can also apply. Priority is given to women, SC/ST, and OBC entrepreneurs. You must have a viable project report with positive DSCR and minimum 5% margin money (15% for PMEGP general category). The business should be located in a non-polluting zone; a No Objection Certificate from local pollution board may be required if using dyes or chemicals.

Project Cost & Financing for Bangle Manufacturing Unit

A typical bangle manufacturing unit requires ₹2–20 lakh investment. For a small unit (2 workers), cost includes: machinery (₹80,000–1.5 lakh) – bangle making machine, polishing machine, moulds, furnace; raw materials (₹50,000–1 lakh) – lac, glass powder, dyes, gold/silver foil; working capital (₹50,000–1 lakh) for 2 months; and other costs like electricity deposit, furniture, and registration. Financing: 15–25% margin money (can be from subsidy), 75–85% bank loan. Under PMEGP, subsidy is 15–35% (max ₹35 lakh project cost). MUDRA Kishor loan up to ₹5 lakh without collateral. PM Vishwakarma provides 5% interest loan up to ₹1 lakh with 50% subsidy on tools. Repayment period is 3–5 years with moratorium of 6 months.

Step-by-Step Process to Get Bank Loan

1. Prepare a detailed project report (DPR) with CMA data, 5-year projections, and DSCR calculation. 2. Choose the scheme: apply online via PMEGP portal (www.kviconline.gov.in) or visit your nearest bank for MUDRA. For PM Vishwakarma, register on pmvishwakarma.gov.in. 3. Submit application with documents: Aadhaar, PAN, address proof, caste certificate (if applicable), educational certificates, project report, and quotation for machinery. 4. Bank evaluates project viability, conducts CIBIL check, and may inspect site. 5. Loan sanction letter issued; margin money deposited. 6. Disbursement: equipment purchase directly paid to supplier, working capital released in tranches. 7. For PMEGP, subsidy is released after 50% loan disbursement. Ensure GST registration if turnover exceeds ₹40 lakh.

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

  • Anyone planning a bangle manufacturing in India
  • Valid Aadhaar & PAN
  • Eligible for PM Vishwakarma, PMEGP, MUDRA Kishor
  • Udyam (MSME) registration recommended
  • New or existing business
  • Premises with basic utilities
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Excel (.xlsx)
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See the report before you pay

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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Accurate bangle manufacturing economics: NIC 32120, ₹2–20 Lakh project cost, machinery & raw material.

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Frequently Asked Questions

What is the cost of a bangle manufacturing?

A typical bangle manufacturing project costs ₹2–20 Lakh depending on scale, location and machinery. The report breaks down land/building, machinery, working capital and pre-operative costs.

Which scheme & how much loan for a bangle manufacturing?

PM Vishwakarma, PMEGP, MUDRA Kishor are commonly used. Banks fund ~75–90% of project cost as term loan + working capital.

How do I get the bangle manufacturing report?

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 minimum and maximum loan amount for a bangle manufacturing unit under PM Vishwakarma?

Under PM Vishwakarma, the loan amount is up to ₹1 lakh (first tranche) and up to ₹2 lakh (second tranche) at 5% interest. The loan is collateral-free and includes a 50% subsidy on tool cost (max ₹15,000). It is specifically for traditional artisans and craftspeople.

Can I get a loan without collateral for a bangle manufacturing unit?

Yes, under CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises), loans up to ₹2 crore are collateral-free. MUDRA loans up to ₹5 lakh also do not require collateral. For PMEGP, collateral is not needed for projects up to ₹10 lakh (for general) and ₹20 lakh (for special categories).

What is the typical DSCR required for a bangle manufacturing unit loan?

Banks typically require a Debt Service Coverage Ratio (DSCR) of at least 1.25 for the loan term. For a bangle unit with ₹5 lakh loan at 10% interest over 5 years, annual net profit should be around ₹1.5 lakh to maintain DSCR of 1.25. Your project report should include DSCR calculation year-wise.

Do I need GST registration for a bangle manufacturing unit?

GST registration is mandatory if your annual turnover exceeds ₹40 lakh (₹20 lakh for special category states). However, even if turnover is lower, registration is recommended for input tax credit on raw materials like lac and dyes. For exports, GST is required. Also, banks may ask for GST registration as part of documentation.

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