Are you a handloom weaver in Varanasi, Assam, or any part of India looking to start or expand your weaving business under the PMEGP (Prime Minister’s Employment Generation Programme)? A bank-ready project report is your key to securing a loan of ₹2–25 lakh for handloom weaving (NIC code 13111). This report must include CMA data (current, projected, and comparative financials), Debt Service Coverage Ratio (DSCR) above 1.25, and 5-year profit/loss, balance sheet, and cash flow projections. It also details raw material costs (cotton/silk yarn, dyes), machinery (handloom frames, warping drums), working capital, and marketing expenses. With a 35% subsidy (15% from government, 20% from bank) for general category and 35% for special categories, the project report ensures your loan is approved faster. We provide a ready-to-use format that complies with KVIC guidelines, saving you time and increasing your chances of funding.
Any individual above 18 years with at least 8th standard education (relaxable for SC/ST/PH/Women/Ex-servicemen) can apply. For handloom weaving, prior experience or training in weaving is preferred but not mandatory. Self-help groups (SHGs), trusts, and societies are also eligible. The project cost must be between ₹2 lakh and ₹25 lakh. For general category, the maximum project cost is ₹25 lakh; for special categories (SC/ST/OBC/Women/Ex-servicemen/PH), it is ₹25 lakh with higher subsidy. The unit can be set up in rural or urban areas, but preference is given to rural areas. You must not have availed any other government subsidy for the same purpose.
For a handloom weaving unit with 4–10 looms, typical project cost includes: machinery (handloom frames, jacquard, dobby, warping machine, dyeing vats) – ₹1.5–8 lakh; raw materials (yarn, dyes, chemicals) – ₹0.5–4 lakh; working capital for 3 months – ₹1–5 lakh; furniture & fixtures – ₹0.2–1 lakh; and other expenses (electrification, installation) – ₹0.3–2 lakh. Total: ₹2–25 lakh. Financing: 35% subsidy (15% government + 20% bank margin money) for general, 35% for special categories. Remaining 65% as term loan from bank. The borrower’s contribution is nil (subsidy covers margin money). Loan repayment period: 5–7 years including 6-month moratorium.
To prepare your project report, gather: Aadhaar card, PAN card, address proof, caste certificate (if applicable), educational qualification certificates, experience/training certificates (if any), 2 passport-size photos, project report in the prescribed format (including CMA data, DSCR calculation, 5-year projections), quotations for machinery and raw materials, proof of land/building (owned or lease agreement), and bank statement for last 6 months. For SHGs, add group resolution and member list. The project report must be signed by a qualified Chartered Accountant or the entrepreneur with a declaration. Submit online via PMEGP portal (kviconline.gov.in) and then to the designated bank branch.
Every report is formatted to the exact standards required by Indian banks and government departments.
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Enter applicant details, select the scheme, set your loan amount.
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PMEGP format + handloom weaving economics combined correctly.
Subsidy/margin money for PMEGP auto-computed.
Project cost ₹2–25 Lakh, NIC 13111.
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 handloom weaving. 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.
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.
For general category, subsidy is 35% of the project cost (15% from government, 20% from bank as margin money). For special categories (SC/ST/OBC/Women/Ex-servicemen/PH), subsidy is 35% (25% government + 10% bank margin money). The maximum subsidy is ₹8.75 lakh for general and ₹8.75 lakh for special categories (since max project cost is ₹25 lakh). The subsidy is released to the bank after loan disbursement and is adjusted against the loan.
After submitting the project report online, the application is forwarded to the District Task Force Committee (DTFC) for recommendation. This takes 15–30 days. Then the bank processes the loan, which takes another 15–30 days for appraisal and sanction. Total time: 1–2 months, provided documents are complete. A well-prepared project report with positive DSCR (>1.25) and realistic projections speeds up approval.
Yes, you can, provided the new loan is for a separate business activity. However, you must not have availed any other government subsidy for the same project. The bank will check your credit history and existing debt obligations. Your DSCR should be above 1.25 considering both loans. It's advisable to disclose all existing loans in the project report to avoid rejection during appraisal.
The Debt Service Coverage Ratio (DSCR) should be at least 1.25 for the first year and improve over the projection period. DSCR = (Net Profit + Depreciation + Interest) / (Principal Repayment + Interest). For a handloom unit with stable demand, a DSCR of 1.5–2 is considered healthy. Our project report template calculates DSCR automatically based on your inputs.