MUDRA Tarun · Leather

MUDRA Tarun Footwear Manufacturing Project Report

Bank-ready footwear manufacturing report under MUDRA Tarun — project cost ₹10 Lakh–1 Cr, subsidy, CMA data, DSCR ≥ 1.50 and 5-year projections.

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About This Scheme

This page provides a comprehensive MUDRA Tarun project report for a footwear manufacturing unit (leather) under NIC 15201, with a project cost between ₹10 lakh and ₹1 crore. Located in Agra, Uttar Pradesh, this report is tailored for entrepreneurs and CAs seeking bank loan approval. A bank-ready project report is crucial for MUDRA Tarun loans (₹10 lakh–₹20 lakh) as it demonstrates viability through CMA data, Debt Service Coverage Ratio (DSCR), and 5-year financial projections. The report includes detailed cost estimates, machinery specifications, working capital requirements, and profitability analysis. It also covers subsidy eligibility under PMEGP and CGTMSE collateral-free guarantee. By using this format, you can streamline loan processing and increase approval chances.

MUDRA Tarun
Scheme
Footwear Manufacturing
Business
₹10 Lakh–1 Cr
Project Cost
15201
NIC Code
₹5L–₹10L
Coverage
≥ 1.50
DSCR (bank norm)
PDF · Word · Excel
Formats
Free
First Report

Eligibility for MUDRA Tarun Footwear Manufacturing

To avail MUDRA Tarun loan for leather footwear manufacturing, the applicant must be an Indian entrepreneur aged 18+ with a viable business plan. The project cost should be between ₹10 lakh and ₹1 crore, with the loan amount up to ₹20 lakh under Tarun category. The business must fall under NIC 15201 (manufacture of footwear). No collateral is required for loans up to ₹10 lakh under CGTMSE; for higher amounts, collateral may be needed. The applicant should have basic knowledge of footwear production and a clear marketing strategy. Priority is given to SC/ST, women, and OBC entrepreneurs under government schemes.

Project Cost & Financing Structure

For a footwear manufacturing unit with a project cost of ₹15 lakh (example), the financing structure includes: 25% margin money (₹3.75 lakh) from the beneficiary, and 75% term loan (₹11.25 lakh) under MUDRA Tarun. The project cost breakup: land & building (rented or owned) – ₹2 lakh, plant & machinery (leather cutting, stitching, sole attaching machines) – ₹6 lakh, working capital (raw materials: leather, soles, threads, adhesives) – ₹5 lakh, and preliminary expenses – ₹2 lakh. The loan repayment period is 5 years with a moratorium of 6 months. Interest rate is typically MCLR + 2-3% (approx. 10-12% p.a.). DSCR should be above 1.5.

Documents Required for MUDRA Tarun Loan

Key documents include: Aadhaar card, PAN card, proof of business address (rent agreement or utility bill), GST registration (if turnover exceeds ₹40 lakh), caste certificate (if applicable), educational qualification certificates, project report with CMA data, 3 years of projected financial statements, and quotations for machinery. For existing businesses, last 2 years IT returns and bank statements are needed. The project report must include a detailed DSCR calculation and break-even analysis. Ensure all documents are self-attested and in order to avoid delays.

Subsidy & Benefits Under PMEGP & CGTMSE

Footwear manufacturing units under MUDRA Tarun can also avail subsidy under PMEGP (Prime Minister's Employment Generation Programme) if set up in rural areas. For urban areas, beneficiaries can get CGTMSE coverage for collateral-free loans up to ₹2 crore. Under PMEGP, general category entrepreneurs get 25% subsidy on project cost (max ₹25 lakh), while SC/ST/OBC/women get 35% (max ₹35 lakh). However, MUDRA Tarun loans are separate; you can apply for PMEGP only if the project cost is within PMEGP limits. CGTMSE guarantee covers up to 85% of the loan amount, reducing bank risk. No direct subsidy under MUDRA, but interest subvention may be available for prompt repayment.

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

  • footwear manufacturing owner eligible under MUDRA Tarun (₹5L–₹10L)
  • Valid Aadhaar & PAN
  • Udyam (MSME) registration recommended
  • New or existing footwear manufacturing
  • Age 18+
  • No prior bank default
Export formats
PDF (A4)
Free: branded/watermarked
Word (.docx)
Paid plans
Excel (.xlsx)
Paid plans

Generate Your Report in 4 Steps

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Fill the Form

Enter applicant details, select the scheme, set your loan amount.

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4

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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?

MUDRA Tarun format + footwear manufacturing economics combined correctly.

Subsidy/margin money for MUDRA Tarun auto-computed.

Project cost ₹10 Lakh–1 Cr, NIC 15201.

CMA, DSCR ≥ 1.50, 5-year projections.

Editable; Word + Excel exports; first report free.

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Frequently Asked Questions

Can I fund a footwear manufacturing with MUDRA Tarun?

Yes — MUDRA Tarun (₹5L–₹10L) is commonly used for footwear manufacturing. The report is formatted to MUDRA Tarun requirements with subsidy/margin money shown.

How much subsidy under MUDRA Tarun?

₹5L–₹10L — computed automatically in the means-of-finance and subsidy sections.

How do I get it?

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 maximum loan amount under MUDRA Tarun for footwear manufacturing?

Under MUDRA Tarun, the loan amount ranges from ₹10 lakh to ₹20 lakh. For projects costing up to ₹1 crore, the loan component is limited to ₹20 lakh. The remaining cost must be funded through margin money or other sources. For projects above ₹20 lakh, consider other schemes like Stand-Up India or PMEGP.

Can I get a subsidy on MUDRA Tarun loan for leather footwear?

MUDRA loans themselves do not offer direct subsidy. However, if your unit is eligible under PMEGP (rural area, project cost ≤ ₹50 lakh for manufacturing), you can get a capital subsidy of 25-35%. Also, CGTMSE provides collateral-free guarantee, reducing your need for collateral. Some states offer additional subsidies for SC/ST/women entrepreneurs.

What is the typical DSCR required for a footwear manufacturing project report?

Banks typically require a DSCR of at least 1.5 for MUDRA Tarun loans. DSCR is calculated as (Net Profit + Depreciation + Interest) / (Loan Installment + Interest). In your project report, ensure projections show DSCR above 1.5 for all 5 years. Higher DSCR improves loan approval chances.

How long does it take to get MUDRA Tarun loan approved for a footwear unit?

Once you submit a complete project report with all documents, approval can take 2-4 weeks. Banks may conduct a site visit and verify credentials. Using a bank-ready project report with CMA data and DSCR calculations speeds up the process. Ensure your credit score is above 650 and no defaults.

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