Construction Materials — Bank Loan & Subsidy

Brick Manufacturing Unit Project Report

Bank-ready brick manufacturing project report — project cost ₹10 Lakh–1 Cr, CMA data, DSCR ≥ 1.50 and 5-year projections for PMEGP, CGTMSE, MUDRA Tarun.

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About This Scheme

Starting a brick manufacturing unit in India requires a well-prepared project report to secure a bank loan under schemes like PMEGP, MUDRA Tarun, or CGTMSE. For a unit with project cost between ₹10 lakh and ₹1 crore, a bank-ready report must include CMA data, projected balance sheets, DSCR calculations, and 5-year financial projections. This page provides a practical guide for entrepreneurs and CAs in states like Uttar Pradesh, Bihar, or Odisha, covering cost breakdown, machinery specifications, and documentation. A robust project report not only demonstrates viability to lenders but also helps in availing subsidies up to 35% under PMEGP or collateral-free loans via CGTMSE. Whether you're setting up a manual or automatic brick kiln (NIC 23921), this content ensures you meet bank requirements for working capital and term loan.

₹10 Lakh–1 Cr
Typical Project Cost
23921
NIC Code
PMEGP
Best-fit Scheme
manufacturing
Segment
≥ 1.50
DSCR (bank norm)
60 seconds
Turnaround
PDF · Word · Excel
Formats
Free
First Report

Eligibility & Scheme Options

Brick manufacturing units are eligible for PMEGP (subsidy up to 35% for general category), MUDRA Tarun (loans up to ₹10 lakh), and CGTMSE (collateral-free loans up to ₹2 crore). For larger projects, Stand-Up India or state-specific schemes may apply. Key eligibility: the applicant must be an Indian citizen above 18, with at least 8th standard education for PMEGP. The unit should be located in a designated industrial area or have necessary environmental clearance (consent from State Pollution Control Board). No prior default on any loan is required.

Project Cost & Financing Structure

A typical brick manufacturing unit (manual process) costs ₹10–20 lakh, while an automatic plant can go up to ₹1 crore. Cost components: land (₹2–5 lakh), machinery (brick extruder, crusher, kiln: ₹5–30 lakh), raw material (clay, coal, fly ash: ₹1–3 lakh), working capital (₹2–5 lakh), and preliminary expenses (₹1 lakh). Financing: promoter's contribution 10–20%, bank loan 80–90%. Under PMEGP, margin money is 5–15% with subsidy. For MUDRA Tarun, loan up to ₹10 lakh with no collateral. CGTMSE covers term loan and working capital up to ₹2 crore without collateral.

Documents Required for Bank Loan

For a brick manufacturing project report, prepare: KYC (Aadhaar, PAN, Voter ID), business proof (GST registration, trade license), land documents (lease deed or ownership), project report with CMA data, 2 years' IT returns of proprietor/partners, and quotations for machinery. Additional: environmental clearance from State Pollution Control Board, NOC from local municipality, and proof of raw material tie-up. For PMEGP, attach educational certificates and project cost summary. Banks may also ask for a detailed DSCR calculation showing minimum 1.25.

Step-by-Step Process to Start

1. Conduct feasibility study (demand, clay availability, competition). 2. Choose location near clay source and market. 3. Register business as sole proprietorship/partnership/private limited. 4. Obtain GST registration, MSME Udyam registration, and pollution consent. 5. Prepare project report with 5-year projections. 6. Apply for loan under suitable scheme (PMEGP via KVIC, MUDRA via bank). 7. After sanction, procure machinery and raw material. 8. Set up kiln (clamp or bull's trench) and start production. 9. Maintain records for subsidy claim (if applicable). Typical timeline: 3–6 months from application to production.

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 brick manufacturing in India
  • Valid Aadhaar & PAN
  • Eligible for PMEGP, CGTMSE, MUDRA Tarun
  • Udyam (MSME) registration recommended
  • New or existing business
  • Premises with basic utilities
Export formats
PDF (A4)
Free: branded/watermarked
Word (.docx)
Paid plans
Excel (.xlsx)
Paid plans

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Export PDF on the free plan (branded). Upgrade for clean exports plus Word (.docx) + Excel (.xlsx). Submit to bank or DIC office.

Why Use Cred for This Report?

Accurate brick manufacturing economics: NIC 23921, ₹10 Lakh–1 Cr project cost, machinery & raw material.

Scheme-ready for PMEGP, CGTMSE, MUDRA Tarun.

Bankable financials (CMA, DSCR ≥ 1.50, P&L, Balance Sheet, Cash Flow).

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Frequently Asked Questions

What is the cost of a brick manufacturing?

A typical brick manufacturing project costs ₹10 Lakh–1 Cr 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 brick manufacturing?

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

How do I get the brick manufacturing report?

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

What is the minimum project cost for a brick manufacturing unit to get a bank loan?

There is no fixed minimum, but most banks prefer projects above ₹5 lakh. Under MUDRA Tarun, loans start from ₹50,000 up to ₹10 lakh. For PMEGP, the minimum project cost is ₹5 lakh (general) and ₹2 lakh (special categories). For larger units, CGTMSE covers up to ₹2 crore. A project cost of ₹10–20 lakh is typical for a manual brick kiln.

Can I get a collateral-free loan for brick manufacturing?

Yes, under CGTMSE, loans up to ₹2 crore are collateral-free for MSMEs. MUDRA loans (Shishu, Kishor, Tarun) also do not require collateral. PMEGP loans up to ₹50 lakh are secured by the project assets, but no third-party guarantee. However, banks may ask for personal guarantee in some cases.

What machinery is needed for a brick manufacturing unit?

For manual process: brick moulds, clay mixer, conveyor belt, and drying racks. For automatic: extruder, crusher, pan mill, brick cutter, and brick setting machine. A typical bull's trench kiln requires chimney, fans, and fuel feeding system. Cost: ₹5–30 lakh depending on capacity (1000–5000 bricks per day).

How long does it take to get a bank loan for a brick unit?

Under PMEGP, the process takes 45–60 days after application to KVIC. For MUDRA or regular bank loans, 2–4 weeks if all documents are ready. Delays may occur due to land clearance or pollution NOC. Pre-approved projects with complete CMA data can be processed faster.

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