This page provides a comprehensive MUDRA Tarun project report for a knitting unit (NIC 13912) located in Tirupur, Tamil Nadu, with a project cost of ₹25 Lakh. A bank-ready project report is essential for loan approval under the MUDRA Tarun scheme (₹10 Lakh–1 Cr). It includes detailed CMA data, DSCR calculations, and 5-year financial projections covering profit & loss, balance sheet, and cash flow. The report also addresses working capital assessment, break-even analysis, and repayment schedule. For a knitting unit, key inputs include yarn costs, machine specifications (e.g., circular knitting machines), power consumption, and labor requirements. This report is tailored for an entrepreneur or CA seeking a subsidy-linked loan under MUDRA Tarun, ensuring compliance with bank norms and faster sanction.
To qualify for MUDRA Tarun loan for a knitting unit, the borrower must be an Indian citizen aged 18+ with a viable business plan. The project cost should be between ₹10 Lakh and ₹1 Cr. For a knitting unit, the business should involve manufacturing of knitted fabrics (NIC 13912). There is no collateral requirement as the loan is covered under CGTMSE up to ₹2 Cr. However, the borrower must have a good credit history and a minimum of 3 years experience in the textile industry or relevant training. The unit should be located in a non-polluting zone and comply with local municipal and environmental regulations. Additionally, the borrower must provide a project report with CMA data and 5-year projections.
For a typical knitting unit with a project cost of ₹25 Lakh, the financing structure under MUDRA Tarun is: Bank loan (85%) = ₹21.25 Lakh, and borrower's margin (15%) = ₹3.75 Lakh. The cost breakup includes: Machinery (circular knitting machines, winding machines) ₹12 Lakh, working capital (yarn, dyes, chemicals) ₹8 Lakh, furniture & fixtures ₹2 Lakh, preliminary expenses ₹1.5 Lakh, and contingency ₹1.5 Lakh. The loan is repayable over 5 years with a moratorium of 6 months. Interest rate is typically MCLR + 2-3% (approx 10-12% p.a.). Subsidy under MUDRA is not direct; instead, the benefit is lower interest rates and no collateral. However, state-specific subsidies may be available (e.g., Tamil Nadu Textile Policy).
For a MUDRA Tarun knitting unit loan application, the following documents are needed: (1) KYC documents (Aadhaar, PAN, Voter ID) of the borrower and co-borrower. (2) Business proof: GST registration, MSME Udyam registration, trade license, and factory license. (3) Project report with CMA data, 5-year financial projections, and DSCR calculation. (4) Quotations for machinery and equipment. (5) Proof of land/building (lease or ownership). (6) Experience certificate or training certificates in knitting/textiles. (7) Bank statements for the last 6 months. (8) IT returns for the last 2 years. (9) Caste certificate if applying under SC/ST/OBC category for additional subsidy. Ensure all documents are self-attested and in order.
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MUDRA Tarun format + knitting unit economics combined correctly.
Subsidy/margin money for MUDRA Tarun auto-computed.
Project cost ₹10 Lakh–1 Cr, NIC 13912.
CMA, DSCR ≥ 1.50, 5-year projections.
Editable; Word + Excel exports; first report free.
Yes — MUDRA Tarun (₹5L–₹10L) is commonly used for knitting unit. The report is formatted to MUDRA Tarun requirements with subsidy/margin money shown.
₹5L–₹10L — computed automatically in the means-of-finance and subsidy sections.
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Under MUDRA Tarun, the loan amount ranges from ₹10 Lakh to ₹1 Cr. For a knitting unit, the exact amount depends on the project cost and the borrower's contribution. Typically, banks finance up to 85% of the project cost, with the borrower bringing in 15% as margin money. The loan is unsecured and covered under CGTMSE.
MUDRA itself does not provide a direct subsidy. However, the scheme offers lower interest rates and no collateral requirement. Additionally, state governments may offer capital subsidies or interest subvention under textile policies. For example, Tamil Nadu's Textile Policy provides a 25% capital subsidy for new knitting units. Check with your local DIC or MSME office for applicable schemes.
Banks typically require a Debt Service Coverage Ratio (DSCR) of at least 1.25 for MUDRA Tarun loans. For a knitting unit, with proper financial projections, a DSCR of 1.5-2.0 is achievable. The project report should show sufficient net profit and depreciation to cover loan installments. A higher DSCR improves loan approval chances.
A low CIBIL score (below 650) may affect loan approval. However, MUDRA loans are more flexible than traditional loans. If you have a low score, you can improve chances by providing collateral (though not required), a strong project report with high DSCR, and a co-borrower with good credit. Some banks may consider the proposal on a case-by-case basis.