For cashew processors in India, the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme offers a 35% capital subsidy (max ₹10 lakh) for projects costing ₹15 lakh to ₹1 crore. This page provides a bank-ready project report format for cashew processing (NIC 10305) under PMFME, covering CMA data, DSCR, and 5-year financial projections. A professional report is essential to secure loans and subsidies from banks like SBI, Canara Bank, or NABARD. The report includes machinery costs (steam roaster, shelling machine, cutting machine), working capital, raw material (raw cashew nuts), and marketing plan. Tailored for entrepreneurs in states like Kerala, Maharashtra, Karnataka, Goa, and Andhra Pradesh, this guide ensures compliance with PMFME guidelines and helps you apply through the District Nodal Agency (DNA) or Udyam portal.
Under PMFME, individual micro food processing units with annual turnover up to ₹5 crore are eligible. For cashew processing, the project cost includes land (if owned), building renovation (₹2-5 lakh), machinery (₹6-10 lakh for steam roaster, shelling machine, grading machine), and working capital (₹5-8 lakh for raw cashew nuts). Total cost typically ranges ₹15-50 lakh for small units and up to ₹1 crore for larger ones. The subsidy is 35% of eligible project cost, capped at ₹10 lakh. The unit must be registered on Udyam portal and have a FSSAI license. Priority is given to women, SC/ST, and aspirational districts.
To apply, submit: 1) Duly filled PMFME application form (Annexure I). 2) Project report with CMA data, 5-year cash flow, DSCR (minimum 1.5). 3) Udyam registration certificate. 4) FSSAI license. 5) Land documents (ownership/lease). 6) Quotations for machinery (from suppliers like Sree Vali Engineering). 7) KYC of applicant (Aadhaar, PAN). 8) Bank statement (last 6 months). 9) Caste certificate (if applicable). 10) GST registration (optional but recommended). For subsidy disbursement, a separate claim form with audited utilization certificate is needed.
Step 1: Register on Udyam portal (udyamregistration.gov.in). Step 2: Prepare project report using our format (download from link below). Step 3: Approach your bank (SBI, Canara Bank, etc.) or District Nodal Agency (DNA) with application. Step 4: Bank appraises project and sanctions loan (70-80% of project cost). Step 5: After loan disbursement, submit subsidy claim to DNA with proof of expenditure. Step 6: DNA verifies and releases 35% subsidy (max ₹10 lakh) directly to your bank account. Timeline: 45-60 days from application to subsidy release. Ensure all machinery invoices are GST-compliant.
Every report is formatted to the exact standards required by Indian banks and government departments.
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PMFME format + cashew processing economics combined correctly.
Subsidy/margin money for PMFME 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 — PMFME (35% capital subsidy) is commonly used for cashew processing. The report is formatted to PMFME requirements with subsidy/margin money shown.
35% capital subsidy — computed automatically in the means-of-finance and subsidy sections.
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.
The minimum project cost is ₹15 lakh, and the maximum is ₹1 crore. However, the subsidy is capped at ₹10 lakh (35% of eligible cost). For projects above ₹28.57 lakh, the subsidy remains ₹10 lakh. It's advisable to keep the project cost between ₹15-30 lakh to maximize subsidy percentage.
Yes, existing units (with turnover up to ₹5 crore) are eligible for expansion or modernization. The subsidy is available for new machinery, working capital, or building renovation. You must submit audited financials for the last 3 years and a project report showing incremental benefits.
No, GST registration is not mandatory for units with turnover below ₹40 lakh (₹20 lakh for special category states). However, for machinery purchases and subsidy claims, GST invoices are required. Many banks prefer GST registration for loan eligibility. It's recommended to register voluntarily.
Banks typically require a Debt Service Coverage Ratio (DSCR) of at least 1.5 for the loan tenure. Our project report calculates DSCR based on projected net profit, depreciation, and interest. For cashew processing, with 20-25% margin, DSCR often exceeds 2.0, making loan approval easier.