Bank-ready candle manufacturing report under MUDRA Kishor — project cost ₹1–15 Lakh, subsidy, CMA data, DSCR ≥ 1.50 and 5-year projections.
Free preview • No credit card • Ready in 60 seconds
For an aspiring entrepreneur in the candle manufacturing business, a bank-ready project report is the cornerstone of securing a MUDRA Kishor loan. This report, specifically tailored for NIC 32990 (Manufacture of candles, tapers and the like), provides lenders with a comprehensive financial blueprint. It includes crucial CMA (Credit Monitoring Arrangement) data, Debt Service Coverage Ratio (DSCR) analysis, and detailed 5-year financial projections. The project cost under MUDRA Kishor ranges from ₹1 to ₹15 lakh, covering machinery, raw materials, and working capital. A well-prepared report not only demonstrates viability but also highlights eligibility for government subsidies and credit guarantee coverage under CGTMSE. This page serves as a practical guide for candle manufacturers in any Indian state, offering a ready-to-use project report format that meets bank requirements and maximizes subsidy benefits.
To qualify for MUDRA Kishor loan under the candle manufacturing project, the applicant must be an Indian citizen, above 18 years of age, with a viable business plan. There is no minimum educational qualification, but prior experience in manufacturing or retail is advantageous. The project cost must be between ₹1 lakh and ₹15 lakh, including capital expenditure (candle molding machines, wax melting pots, dyes, molds) and working capital (paraffin wax, stearic acid, wicks, fragrances, packaging). The business should be a new venture or an existing unit seeking expansion. CGTMSE coverage is available for loans up to ₹5 lakh without collateral; beyond that, collateral may be required. The borrower must have a good credit history and a bank account in India.
A typical candle manufacturing project under MUDRA Kishor involves a total cost of ₹5–15 lakh. Breakup: Plant & Machinery (₹2–6 lakh) — including automatic candle making machines, wax melting tanks, cooling tunnels; Raw Materials (₹1–3 lakh) — paraffin wax, stearic acid, wicks, dyes; Working Capital (₹1–4 lakh) — for 2–3 months of operations; Other expenses (₹0.5–2 lakh) — rent, electricity, labor, marketing. The financing structure: MUDRA loan covers up to 90% of project cost, with 10% promoter contribution. For a ₹10 lakh project, loan amount is ₹9 lakh (MUDRA Kishor) and promoter brings ₹1 lakh. Interest rates range from 9% to 12% per annum, depending on the bank. Repayment tenure is 3–5 years. Subsidy: Under PMEGP, a 15–25% subsidy (max ₹35 lakh) is available for manufacturing units, but MUDRA and PMEGP cannot be combined for the same project. However, CGTMSE guarantee reduces collateral requirement.
For a MUDRA Kishor loan application for candle manufacturing, submit: 1) KYC documents (Aadhaar, PAN, Voter ID); 2) Business proof (GST registration, trade license, MSME Udyam registration); 3) Project report with CMA data, DSCR, 5-year projections; 4) Quotations for machinery and raw materials; 5) Bank statements (last 6 months); 6) Income tax returns (last 2 years, if applicable); 7) Property documents if collateral offered; 8) Caste certificate (if seeking subsidy under SC/ST/OBC categories). For new businesses, a detailed business plan and market analysis are essential. Ensure all documents are self-attested and notarized where required. The project report must include a break-even analysis, cash flow statement, and repayment schedule.
Step 1: Prepare a comprehensive project report for candle manufacturing, including financials. Step 2: Register your business as a sole proprietorship, partnership, or private limited company. Obtain Udyam Aadhaar registration. Step 3: Approach a bank (public sector, private, or regional rural bank) that offers MUDRA loans. Step 4: Submit the loan application along with the project report and required documents. Step 5: The bank evaluates the project’s viability, DSCR (should be >1.25), and creditworthiness. Step 6: Upon approval, the loan is disbursed in stages — first for machinery purchase, then for working capital. Step 7: Utilize the funds as per the project report and maintain proper records. Step 8: Repay the loan in monthly/quarterly installments as per the agreed tenure. Tip: Apply under CGTMSE for collateral-free loan up to ₹5 lakh.
MUDRA Kishor loan itself does not offer a direct subsidy, but borrowers can avail benefits under CGTMSE (credit guarantee) which covers up to 85% of the loan amount without collateral for loans up to ₹5 lakh. For loans above ₹5 lakh, collateral is required but CGTMSE still provides partial guarantee. Additionally, if the entrepreneur belongs to SC/ST/OBC/minority categories, they can apply for interest subvention under schemes like PMEGP (though not combinable with MUDRA). Some state governments offer capital subsidies or tax exemptions for small-scale manufacturing units. For example, under the Uttar Pradesh MSME Policy, a 15% capital subsidy (max ₹35 lakh) is available. It is advisable to check with the local DIC (District Industries Centre) for state-specific incentives. The key benefit of MUDRA is the easy availability of funds without extensive documentation.
Every report is formatted to the exact standards required by Indian banks and government departments.
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 Report
Consumer electronics repair, servicing & spare-parts retail
Vaishali Nagar, Jaipur, Rajasthan
Submitted to the Branch Manager · Punjab National Bank, Vaishali Nagar, Jaipur
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.
| Particulars | Basis | Amount (₹) |
|---|---|---|
| Renovation & civil work | 200 sq.ft. additional area, electrical, ESD flooring | 1,20,000 |
| Diagnostic & repair equipment | As per quotations — Annexure IX | 2,40,000 |
| Computers, software & service tools | 2 systems, billing software, tool kits | 80,000 |
| Furniture, air-conditioning & display fixtures | Counter, racks, 1.5 T AC | 60,000 |
| Margin money for working capital | Stock, receivables & operating cash | 5,00,000 |
| Total project cost | 10,00,000 |
A 5% contingency is built into the civil and equipment estimates. All capital items are supported by three quotations each.
| Source | Amount (₹) | % of project cost |
|---|---|---|
| Promoter's own contribution | 2,00,000 | 20.00% |
| Term loan under MUDRA Tarun | 8,00,000 | 80.00% |
| Subsidy / margin money grant | Nil | — |
| Total | 10,00,000 | 100.00% |
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.
| Equipment | Qty | Rate (₹) | Amount (₹) |
|---|---|---|---|
| BGA rework station with preheater | 1 | 95,000 | 95,000 |
| Digital storage oscilloscope with probes | 1 | 45,000 | 45,000 |
| Universal IC programmer | 1 | 35,000 | 35,000 |
| Ultrasonic PCB cleaning unit | 1 | 22,000 | 22,000 |
| Soldering / desoldering stations | 3 | 8,000 | 24,000 |
| Precision tool kits & ESD workbench | 2 | 9,500 | 19,000 |
| Total | 2,40,000 |
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.
| Particulars | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Service & repair income | 24.00 | 28.32 | 32.57 | 36.80 | 41.22 |
| Sale of spares & accessories | 9.60 | 11.33 | 13.03 | 14.73 | 16.49 |
| Total revenue | 33.60 | 39.65 | 45.60 | 51.53 | 57.71 |
| Cost of spares & materials (45%) | 15.12 | 17.84 | 20.52 | 23.19 | 25.97 |
| Gross profit | 18.48 | 21.81 | 25.08 | 28.34 | 31.74 |
| Salaries & wages | 6.72 | 7.26 | 7.84 | 8.47 | 9.14 |
| Rent | 1.44 | 1.51 | 1.59 | 1.67 | 1.75 |
| Power & fuel | 0.72 | 0.78 | 0.83 | 0.89 | 0.95 |
| Repairs & maintenance | 0.30 | 0.33 | 0.36 | 0.39 | 0.42 |
| Marketing & business promotion | 0.36 | 0.40 | 0.44 | 0.48 | 0.52 |
| Administrative & miscellaneous | 0.60 | 0.66 | 0.72 | 0.78 | 0.84 |
| Insurance | 0.12 | 0.13 | 0.14 | 0.15 | 0.16 |
| Total operating expenses | 10.26 | 11.07 | 11.92 | 12.83 | 13.78 |
| EBITDA | 8.22 | 10.74 | 13.16 | 15.51 | 17.96 |
| Depreciation (WDV, as per IT Act) | 0.86 | 0.66 | 0.52 | 0.42 | 0.35 |
| EBIT | 7.36 | 10.08 | 12.64 | 15.09 | 17.61 |
| Interest on term loan | 0.78 | 0.64 | 0.48 | 0.31 | 0.11 |
| Profit before tax | 6.58 | 9.44 | 12.16 | 14.78 | 17.50 |
| Income tax (as applicable) | 0.30 | 0.62 | 0.95 | 1.35 | 1.80 |
| Profit after tax | 6.28 | 8.82 | 11.21 | 13.43 | 15.70 |
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.
| Year | Opening balance | Principal repaid | Interest | Total outgo | Closing balance |
|---|---|---|---|---|---|
| 1 | 8,00,000 | 1,28,404 | 77,937 | 2,06,341 | 6,71,596 |
| 2 | 6,71,596 | 1,42,555 | 63,787 | 2,06,341 | 5,29,041 |
| 3 | 5,29,041 | 1,58,265 | 48,077 | 2,06,341 | 3,70,776 |
| 4 | 3,70,776 | 1,75,706 | 30,635 | 2,06,341 | 1,95,070 |
| 5 | 1,95,070 | 1,95,070 | 11,272 | 2,06,341 | Nil |
| Total | 8,00,000 | 2,31,707 | 10,31,705 |
| Particulars | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Profit after tax | 6.28 | 8.82 | 11.21 | 13.43 | 15.70 |
| Add: depreciation | 0.86 | 0.66 | 0.52 | 0.42 | 0.35 |
| Add: interest on term loan | 0.78 | 0.64 | 0.48 | 0.31 | 0.11 |
| Cash available for debt service (A) | 7.92 | 10.12 | 12.21 | 14.16 | 16.16 |
| Principal repayment | 1.28 | 1.43 | 1.58 | 1.76 | 1.95 |
| Interest | 0.78 | 0.64 | 0.48 | 0.31 | 0.11 |
| Total debt service (B) | 2.06 | 2.07 | 2.06 | 2.07 | 2.06 |
| DSCR (A ÷ B) | 3.84 | 4.89 | 5.93 | 6.84 | 7.84 |
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.
| Particulars | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| LIABILITIES | |||||
| Capital account (net of drawings) | 4.08 | 7.50 | 12.11 | 17.74 | 24.44 |
| Term loan — long-term portion | 5.29 | 3.71 | 1.95 | — | — |
| Term loan — current maturity | 1.43 | 1.58 | 1.76 | 1.95 | — |
| Sundry creditors (30 days) | 1.26 | 1.49 | 1.71 | 1.93 | 2.16 |
| Other current liabilities & provisions | 0.30 | 0.35 | 0.40 | 0.45 | 0.50 |
| Total | 12.36 | 14.63 | 17.93 | 22.07 | 27.10 |
| ASSETS | |||||
| Net fixed assets | 4.14 | 3.48 | 2.96 | 2.54 | 2.19 |
| Stock of spares (45 days) | 1.86 | 2.20 | 2.53 | 2.86 | 3.20 |
| Sundry debtors (10 days) | 0.92 | 1.09 | 1.25 | 1.41 | 1.58 |
| Cash & bank balance | 5.44 | 7.86 | 11.19 | 15.26 | 20.13 |
| Total | 12.36 | 14.63 | 17.93 | 22.07 | 27.10 |
| Sources | Amount | Applications | Amount |
|---|---|---|---|
| Profit after tax | 6.28 | Capital expenditure | 5.00 |
| Depreciation | 0.86 | Increase in stock | 1.86 |
| Increase in creditors & provisions | 1.56 | Increase in debtors | 0.92 |
| Term loan drawn | 8.00 | Repayment of term loan | 1.28 |
| Promoter's capital introduced | 2.00 | Drawings | 4.20 |
| Closing cash & bank | 5.44 | ||
| Total | 18.70 | Total | 18.70 |
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.
| Particulars | Amount |
|---|---|
| Stock of spares | 1.86 |
| Sundry debtors | 0.92 |
| Cash & bank balance | 5.44 |
| Total current assets (TCA) | 8.22 |
| Sundry creditors | 1.26 |
| Other current liabilities & provisions | 0.30 |
| Current maturity of term loan | 1.43 |
| Other current liabilities (OCL) | 2.99 |
| Working capital gap (TCA − OCL) | 5.23 |
| 25% of TCA — stipulated margin | 2.06 |
| 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
| Ratio | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Bank norm |
|---|---|---|---|---|---|---|
| Current ratio | 2.75 | 3.26 | 3.87 | 4.51 | 9.36 | ≥ 1.25 |
| Debt–equity ratio | 1.65 | 0.71 | 0.31 | 0.11 | Nil | ≤ 3.00 |
| DSCR | 3.84 | 4.89 | 5.93 | 6.84 | 7.84 | ≥ 1.25 |
| Net profit margin | 18.7% | 22.2% | 24.6% | 26.1% | 27.2% | — |
| Interest coverage | 9.4 | 15.8 | 26.3 | 48.7 | 160.1 | ≥ 2.00 |
| Particulars | Amount |
|---|---|
| Fixed costs (salaries, rent, admin, depreciation, interest) | 10.88 |
| Variable costs (materials, power, maintenance) | 16.14 |
| Contribution (revenue − variable costs) | 17.46 |
| P/V ratio | 51.96% |
| Break-even sales | 20.94 |
| Break-even as % of Year-1 revenue | 62.3% |
| Cash break-even as % of Year-1 revenue | 57.4% |
Strengths
Weaknesses
Opportunities
Threats
Free to generate · ₹499 for the clean PDF + Word + Excel · 30-day money-back guarantee
Create your account in 30 seconds — no credit card needed.
Enter applicant details, select the scheme, set your loan amount.
The full report is drafted for you — financials, projections and CMA data — in under 60 seconds.
Preview free, then download the clean PDF plus Word (.docx) + Excel (.xlsx) once unlocked. Submit to bank or DIC office.
MUDRA Kishor format + candle manufacturing economics combined correctly.
Subsidy/margin money for MUDRA Kishor auto-computed.
Project cost ₹1–15 Lakh, NIC 32990.
CMA, DSCR ≥ 1.50, 5-year projections.
Editable; Word + Excel exports; first report free.
Yes — MUDRA Kishor (₹50K–₹5L) is commonly used for candle manufacturing. The report is formatted to MUDRA Kishor requirements with subsidy/margin money shown.
₹50K–₹5L — computed automatically in the means-of-finance and subsidy sections.
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.
Under MUDRA Kishor, the loan amount ranges from ₹50,001 to ₹5 lakh. However, for candle manufacturing projects with a cost up to ₹15 lakh, you can apply for MUDRA Tarun (₹5 lakh to ₹10 lakh) or combine with other financing. The MUDRA Kishor limit is ₹5 lakh, so if your project cost is higher, consider MUDRA Tarun or a composite loan.
MUDRA loans do not have a direct subsidy. However, if you are eligible under PMEGP, you can get a subsidy of 15-25% (up to ₹35 lakh) for manufacturing units, but you cannot avail both MUDRA and PMEGP for the same project. Alternatively, CGTMSE provides credit guarantee, reducing collateral requirement. Check state-level schemes for additional subsidies.
Banks typically require a Debt Service Coverage Ratio (DSCR) of at least 1.25 for MUDRA loans. For a candle manufacturing unit, with proper cost management and sales projections, a DSCR of 1.5 to 2.0 is achievable. The project report should show consistent cash flows to cover principal and interest payments.
The approval time varies by bank, but typically it takes 2-4 weeks from submission of complete application. If the project report is well-prepared and documents are in order, some banks may approve within 7-10 days. Delays can occur if additional information is required or if collateral valuation is needed.