This page provides a bank-ready PMEGP project report for cashew processing under NIC 10305, tailored for entrepreneurs in Kollam, Kerala—the cashew capital of India. With a project cost between ₹15 lakh and ₹1 crore, the PMEGP scheme offers a subsidy of 25% (general category) to 35% (special categories) of the project cost, capped at ₹35 lakh. A comprehensive project report is essential for loan approval and includes CMA data, DSCR calculations, and 5-year financial projections covering profitability, cash flow, and balance sheet. This report also details raw material sourcing from local suppliers, machinery specifications (e.g., cashew nut sheller, roaster, grading machine), and market linkages. By using this template, you can streamline your application process and increase chances of sanction from banks like SBI, Canara Bank, or Kerala Gramin Bank.
Under PMEGP, any individual above 18 years with at least 8th standard education can apply. For cashew processing, the project cost range of ₹15 lakh to ₹1 crore qualifies for a subsidy of 25% (general category) or 35% (SC/ST/OBC/women/ex-servicemen/minorities). The subsidy is released in two installments: 20% after loan sanction and 80% after unit establishment. The maximum subsidy is ₹35 lakh. The beneficiary must contribute 10% of the project cost as margin money (5% for special categories). The bank finances the remaining amount as term loan and working capital.
For a typical cashew processing unit with a project cost of ₹50 lakh, the breakup includes: land & building (₹10 lakh), plant & machinery (₹25 lakh—cashew nut sheller, roaster, cutting machine, grading machine, packaging unit), working capital (₹12 lakh), and preliminary expenses (₹3 lakh). The financing plan: margin money 10% (₹5 lakh), PMEGP subsidy 25% (₹12.5 lakh), and bank loan 65% (₹32.5 lakh). The loan tenure is 5-7 years with a moratorium of 6 months. Interest rates are typically MCLR + 2-3% (around 9-11% per annum).
Key documents include: Aadhaar card, PAN card, caste certificate (if applicable), educational qualification certificate, project report (as per PMEGP format), land documents (ownership/lease agreement), quotations for machinery, estimated working capital assessment, and two passport-size photographs. For existing units, audited financials for 3 years are needed. The project report must include CMA data, DSCR (minimum 1.25), and 5-year projections. Submit the application online via the PMEGP portal (kviconline.gov.in) and then to the nearest KVIC or DIC office.
Every report is formatted to the exact standards required by Indian banks and government departments.
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PMEGP format + cashew processing economics combined correctly.
Subsidy/margin money for PMEGP auto-computed.
Project cost ₹15 Lakh–1 Cr, NIC 10305.
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 cashew processing. 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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The maximum subsidy is ₹35 lakh, which is 25% of the project cost for general category and 35% for special categories (SC/ST/OBC/women/ex-servicemen/minorities). The project cost must be between ₹15 lakh and ₹1 crore.
Yes, Kollam is a major cashew hub with abundant raw material and skilled labor. You can apply to banks like SBI, Canara Bank, or Kerala Gramin Bank. The project report should include local sourcing details and market links to exporters.
Banks typically require a Debt Service Coverage Ratio (DSCR) of at least 1.25. Your project report should show sufficient net cash flow to cover loan installments. We recommend a DSCR of 1.5 for comfortable approval.
The first installment (20% of subsidy) is released after loan sanction and margin money deposit. The remaining 80% is released after the unit is established and a physical verification is done. Typically, the full subsidy is disbursed within 6-12 months of loan sanction.