PM Vishwakarma · Textiles

PM Vishwakarma Jute Bag Unit Project Report

Bank-ready jute bag unit report under PM Vishwakarma — project cost ₹5–40 Lakh, subsidy, CMA data, DSCR ≥ 1.50 and 5-year projections.

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About This Scheme

This page provides a comprehensive, bank-ready project report for a Jute Bag Unit under the PM Vishwakarma scheme (NIC 13941). The scheme offers subsidized loans of up to ₹5 lakh (first tranche) and ₹10 lakh (second tranche) for traditional artisans and craftspeople, including jute bag makers. For a unit with a project cost between ₹5–40 lakh, a detailed report is essential to secure financing and subsidy benefits. The report includes CMA (Credit Monitoring Arrangement) data, Debt Service Coverage Ratio (DSCR) above 1.5, and 5-year financial projections covering production, sales, costs, and profitability. It also outlines the subsidy structure: 5% interest subvention and a capital subsidy of up to ₹1 lakh (toolkit). Whether you are a jute artisan in West Bengal, Bihar, or Odisha, this report helps you present a viable business case to banks (e.g., SBI, Canara Bank) and PM Vishwakarma implementation agencies. It covers raw material sourcing (jute from local mandis), machinery (jute bag sewing machines, cutting tables), working capital, and marketing strategies. Use this template to save time and increase approval chances.

PM Vishwakarma
Scheme
Jute Bag Unit
Business
₹5–40 Lakh
Project Cost
13941
NIC Code
artisan loan + toolkit
Coverage
≥ 1.50
DSCR (bank norm)
PDF · Word · Excel
Formats
₹499 / report
Price

Eligibility & Key Requirements

To apply for a PM Vishwakarma Jute Bag Unit loan, you must be an artisan or craftsperson engaged in jute bag making, aged 18+, with no prior default on government loans. The scheme is open to individuals or groups (SHGs, cooperatives) but not to companies or LLPs. You need a valid Aadhaar, a bank account (preferably Jan Dhan or savings), and a skill certificate from a recognized institution (or self-declaration for traditional artisans). The project cost includes capital expenditure (machinery, tools) and working capital (raw jute, thread, labor). For a unit in Kolkata or rural Bengal, typical machinery includes a heavy-duty jute bag sewing machine (₹40,000–60,000), cutting machine (₹30,000), and hand tools. The subsidy covers 5% interest subvention on the loan and a toolkit grant of up to ₹1 lakh (for tools costing up to ₹15,000). Ensure your project report shows a DSCR of at least 1.25 and a payback period within 5 years.

Project Cost & Financing Structure

For a Jute Bag Unit with a total project cost of ₹15 lakh (example), the financing structure under PM Vishwakarma is: 20% own contribution (₹3 lakh) and 80% loan (₹12 lakh). The loan is split into two tranches: first tranche up to ₹5 lakh (no collateral required, backed by CGTMSE up to ₹5 lakh) and second tranche up to ₹10 lakh (requires collateral or CGTMSE coverage up to ₹10 lakh). The subsidy includes a 5% interest subvention (reducing effective interest to around 4-5% p.a.) and a toolkit grant of ₹15,000–₹1,00,000 (reimbursed after purchase). For a unit in Bihar, where jute is abundant, the cost breakup: land & building (rented, ₹0), plant & machinery (₹4.5 lakh), working capital (₹8 lakh for raw jute, wages, electricity), and preliminary expenses (₹2.5 lakh). The CMA data should show peak working capital needs during the jute harvesting season (July-October). The 5-year projections must include production capacity (e.g., 500 bags/day), revenue (₹60/bag), and net profit margin of 15-20%.

Documents Required for Bank Submission

A complete bank-ready project report for a PM Vishwakarma Jute Bag Unit must include: 1) PM Vishwakarma application form (online via PM Vishwakarma portal or CSC), 2) Aadhaar and PAN card, 3) Proof of address (electricity bill, rent agreement), 4) Caste/category certificate (if SC/ST/OBC), 5) Skill certificate or self-declaration, 6) Quotations for machinery and raw materials, 7) CMA data (current assets, current liabilities, working capital gap), 8) 5-year financial projections (P&L, balance sheet, cash flow), 9) DSCR calculation (minimum 1.25), 10) Repayment schedule (5-7 years), 11) Photographs of existing workspace or proposed location, 12) GST registration (if turnover > ₹40 lakh, else optional). For the subsidy claim, submit invoices for toolkit purchase and interest certificate from the bank. Local banks (e.g., UCO Bank in West Bengal) may ask for a detailed marketing plan showing tie-ups with local traders or e-commerce platforms. Ensure all documents are self-attested.

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

  • jute bag unit owner eligible under PM Vishwakarma (artisan loan + toolkit)
  • Valid Aadhaar & PAN
  • Udyam (MSME) registration recommended
  • New or existing jute bag unit
  • Age 18+
  • No prior bank default
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Excel (.xlsx)
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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 cost
₹10,00,000
Term loan sought
₹8,00,000
Promoter's margin
₹2,00,000 (20%)
Average DSCR
5.87 (norm ≥ 1.25)
Break-even
62% of Year-1 sales
Employment
3 existing + 3 new

Project Report

Sharma Electronics & Repair Services

Consumer electronics repair, servicing & spare-parts retail

Vaishali Nagar, Jaipur, Rajasthan

SchemeMUDRA Tarun
Loan applied for₹8,00,000
Total project cost₹10,00,000
ConstitutionSole Proprietorship

Submitted to the Branch Manager · Punjab National Bank, Vaishali Nagar, Jaipur

01

Executive Summary

Name of the unit
Sharma Electronics & Repair Services
Constitution
Sole Proprietorship
Promoter
Suresh Sharma (34 years)
Address of unit
Shop No. 12, Ground Floor, Vaishali Nagar, Jaipur — 302021
Nature of activity
Consumer electronics repair, servicing & spare-parts retail
NIC code
9521 — Repair of consumer electronics
Scheme applied under
Pradhan Mantri MUDRA Yojana — Tarun
Total project cost
₹10,00,000
Term loan requested
₹8,00,000 (80%)
Promoter's contribution
₹2,00,000 (20%)
Repayment
60 monthly instalments @ 10.50% p.a.

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.

05

Project Cost

Cost of the project
ParticularsBasisAmount (₹)
Renovation & civil work200 sq.ft. additional area, electrical, ESD flooring1,20,000
Diagnostic & repair equipmentAs per quotations — Annexure IX2,40,000
Computers, software & service tools2 systems, billing software, tool kits80,000
Furniture, air-conditioning & display fixturesCounter, racks, 1.5 T AC60,000
Margin money for working capitalStock, receivables & operating cash5,00,000
Total project cost10,00,000

A 5% contingency is built into the civil and equipment estimates. All capital items are supported by three quotations each.

06

Means of Finance

Means of finance
SourceAmount (₹)% of project cost
Promoter's own contribution2,00,00020.00%
Term loan under MUDRA Tarun8,00,00080.00%
Subsidy / margin money grantNil
Total10,00,000100.00%

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.

07

Machinery & Equipment

Plant, machinery and equipment proposed
EquipmentQtyRate (₹)Amount (₹)
BGA rework station with preheater195,00095,000
Digital storage oscilloscope with probes145,00045,000
Universal IC programmer135,00035,000
Ultrasonic PCB cleaning unit122,00022,000
Soldering / desoldering stations38,00024,000
Precision tool kits & ESD workbench29,50019,000
Total2,40,000

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.

09

Profitability Projections (5 Years)

Projected profit & loss account (₹ in lakh)
ParticularsYear 1Year 2Year 3Year 4Year 5
Service & repair income24.0028.3232.5736.8041.22
Sale of spares & accessories9.6011.3313.0314.7316.49
Total revenue33.6039.6545.6051.5357.71
Cost of spares & materials (45%)15.1217.8420.5223.1925.97
Gross profit18.4821.8125.0828.3431.74
Salaries & wages6.727.267.848.479.14
Rent1.441.511.591.671.75
Power & fuel0.720.780.830.890.95
Repairs & maintenance0.300.330.360.390.42
Marketing & business promotion0.360.400.440.480.52
Administrative & miscellaneous0.600.660.720.780.84
Insurance0.120.130.140.150.16
Total operating expenses10.2611.0711.9212.8313.78
EBITDA8.2210.7413.1615.5117.96
Depreciation (WDV, as per IT Act)0.860.660.520.420.35
EBIT7.3610.0812.6415.0917.61
Interest on term loan0.780.640.480.310.11
Profit before tax6.589.4412.1614.7817.50
Income tax (as applicable)0.300.620.951.351.80
Profit after tax6.288.8211.2113.4315.70

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.

10

Repayment Schedule & DSCR

Loan amount
₹8,00,000
Rate of interest
10.50% p.a. (reducing balance)
Tenure
60 months
Moratorium
Nil
Equated monthly instalment
₹17,195
Total interest over the tenure
₹2,31,707
Year-wise repayment schedule (₹)
YearOpening balancePrincipal repaidInterestTotal outgoClosing balance
18,00,0001,28,40477,9372,06,3416,71,596
26,71,5961,42,55563,7872,06,3415,29,041
35,29,0411,58,26548,0772,06,3413,70,776
43,70,7761,75,70630,6352,06,3411,95,070
51,95,0701,95,07011,2722,06,341Nil
Total8,00,0002,31,70710,31,705
Debt service coverage ratio (₹ in lakh)
ParticularsYear 1Year 2Year 3Year 4Year 5
Profit after tax6.288.8211.2113.4315.70
Add: depreciation0.860.660.520.420.35
Add: interest on term loan0.780.640.480.310.11
Cash available for debt service (A)7.9210.1212.2114.1616.16
Principal repayment1.281.431.581.761.95
Interest0.780.640.480.310.11
Total debt service (B)2.062.072.062.072.06
DSCR (A ÷ B)3.844.895.936.847.84

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.

11

Balance Sheet & Cash Flow Projections

Projected balance sheet (₹ in lakh)
ParticularsYear 1Year 2Year 3Year 4Year 5
LIABILITIES
Capital account (net of drawings)4.087.5012.1117.7424.44
Term loan — long-term portion5.293.711.95
Term loan — current maturity1.431.581.761.95
Sundry creditors (30 days)1.261.491.711.932.16
Other current liabilities & provisions0.300.350.400.450.50
Total12.3614.6317.9322.0727.10
ASSETS
Net fixed assets4.143.482.962.542.19
Stock of spares (45 days)1.862.202.532.863.20
Sundry debtors (10 days)0.921.091.251.411.58
Cash & bank balance5.447.8611.1915.2620.13
Total12.3614.6317.9322.0727.10
Cash flow statement — Year 1 (₹ in lakh)
SourcesAmountApplicationsAmount
Profit after tax6.28Capital expenditure5.00
Depreciation0.86Increase in stock1.86
Increase in creditors & provisions1.56Increase in debtors0.92
Term loan drawn8.00Repayment of term loan1.28
Promoter's capital introduced2.00Drawings4.20
Closing cash & bank5.44
Total18.70Total18.70
12

CMA Data & Working Capital Assessment

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.

Maximum permissible bank finance (₹ in lakh)
ParticularsAmount
Stock of spares1.86
Sundry debtors0.92
Cash & bank balance5.44
Total current assets (TCA)8.22
Sundry creditors1.26
Other current liabilities & provisions0.30
Current maturity of term loan1.43
Other current liabilities (OCL)2.99
Working capital gap (TCA − OCL)5.23
25% of TCA — stipulated margin2.06
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

  • Form I — particulars of existing and proposed limits
  • Form II — operating statement (actuals and projections)
  • Form III — analysis of the balance sheet
  • Form IV — comparative statement of current assets and current liabilities
  • Form V — computation of maximum permissible bank finance
  • Form VI — fund flow statement
  • Ratio analysis and holding-period statement
13

Key Ratios, Break-Even & SWOT

Key financial indicators
RatioYear 1Year 2Year 3Year 4Year 5Bank norm
Current ratio2.753.263.874.519.36≥ 1.25
Debt–equity ratio1.650.710.310.11Nil≤ 3.00
DSCR3.844.895.936.847.84≥ 1.25
Net profit margin18.7%22.2%24.6%26.1%27.2%
Interest coverage9.415.826.348.7160.1≥ 2.00
Break-even analysis — Year 1 (₹ in lakh)
ParticularsAmount
Fixed costs (salaries, rent, admin, depreciation, interest)10.88
Variable costs (materials, power, maintenance)16.14
Contribution (revenue − variable costs)17.46
P/V ratio51.96%
Break-even sales20.94
Break-even as % of Year-1 revenue62.3%
Cash break-even as % of Year-1 revenue57.4%

Strengths

  • Nine years of promoter experience in the same line of activity; the unit is already running and profitable.
  • Only board-level repair capability in a 3 km catchment of 12,000 households.
  • 85% repeat customers — revenue is recurring rather than one-off.
  • Low fixed-cost base; the shop is rented at ₹12,000 a month with no owned-premises burden.

Weaknesses

  • Technical dependence on the proprietor for complex board-level work.
  • Informal book-keeping to date; a computerised billing and stock system is part of this project.
  • Brand recognition limited to the immediate locality.

Opportunities

  • Right to Repair framework improving access to genuine spares for independent repairers.
  • About 3,000 new households entering the catchment within 1 km.
  • Institutional tie-ups — schools, clinics and offices for annual maintenance contracts.

Threats

  • An authorised brand service centre opening within the catchment.
  • Import-duty-led increases in spare-parts prices.
  • Attrition of trained technicians to larger service chains.
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Project cost ₹5–40 Lakh, NIC 13941.

CMA, DSCR ≥ 1.50, 5-year projections.

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Frequently Asked Questions

Can I fund a jute bag unit with PM Vishwakarma?

Yes — PM Vishwakarma (artisan loan + toolkit) is commonly used for jute bag unit. The report is formatted to PM Vishwakarma requirements with subsidy/margin money shown.

How much subsidy under PM Vishwakarma?

artisan loan + toolkit — computed automatically in the means-of-finance and subsidy sections.

How do I get it?

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.

Can I get a PM Vishwakarma loan for a jute bag unit if I am already running a business?

Yes, but only if you are an individual artisan or craftsperson. The scheme is for traditional artisans, not for existing businesses that are registered as companies or LLPs. If you have a sole proprietorship, you can apply, provided you have not availed similar subsidy from other schemes like MUDRA or PMEGP in the last 5 years.

What is the maximum loan amount I can get for a jute bag unit under PM Vishwakarma?

The maximum loan is ₹10 lakh in two tranches: first tranche up to ₹5 lakh (without collateral) and second tranche up to ₹10 lakh (with collateral or CGTMSE cover). The total project cost can be up to ₹40 lakh, but the loan component is capped at ₹10 lakh. You need to bring in the remaining amount as own contribution.

Is there any subsidy for machinery or tools for jute bag making?

Yes, PM Vishwakarma provides a toolkit grant of up to ₹1 lakh, but only for tools costing up to ₹15,000 (the grant is limited to the actual cost). For machinery above ₹15,000, you can claim 5% interest subvention on the loan. The toolkit grant is reimbursed after you submit invoices and photographs of the purchased tools.

How do I prepare a CMA for my jute bag unit project report?

CMA (Credit Monitoring Arrangement) data includes current assets (raw jute, work-in-progress, finished goods, receivables, cash) and current liabilities (creditors, bank overdraft). For a jute bag unit, assume raw jute stock for 2 months, finished goods for 15 days, and receivables for 30 days. Calculate working capital gap = current assets - current liabilities. The bank will finance 75% of the gap. Use a CMA format from your bank or download from our site.

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