Consumer Goods — Bank Loan & Subsidy

Face Mask Manufacturing Project Report

Bank-ready face mask unit project report — project cost ₹3–25 Lakh, CMA data, DSCR ≥ 1.50 and 5-year projections for PMEGP, MUDRA Kishor, CGTMSE.

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About This Scheme

Starting a face mask manufacturing unit in India in 2025 is a promising venture, especially with sustained demand from healthcare, industrial, and retail sectors. This page provides a comprehensive guide for entrepreneurs and Chartered Accountants preparing a bank-ready project report for a Face Mask Unit (NIC 17095). Whether you are applying under PMEGP (subsidy up to 35%), MUDRA Kishor (loan up to ₹5 lakh), or CGTMSE (collateral-free loan up to ₹2 crore), a well-structured project report is essential. The report must include CMA data, DSCR calculations, and 5-year financial projections covering production capacity, raw material costs (meltblown fabric, ear loops, nose wires), machinery (mask-making machine, ultrasonic welder), and working capital. Typical project costs range from ₹3 lakh for a semi-automatic unit to ₹25 lakh for an automatic line. This guide covers eligibility, costs, machinery, documentation, and step-by-step process to secure a bank loan.

₹3–25 Lakh
Typical Project Cost
17095
NIC Code
PMEGP
Best-fit Scheme
manufacturing
Segment
≥ 1.50
DSCR (bank norm)
60 seconds
Turnaround
PDF · Word · Excel
Formats
Free
First Report

Eligibility & Scheme Options

Face mask manufacturing falls under NIC code 17095 (manufacture of made-up textile articles). Eligibility for government schemes: PMEGP requires the entrepreneur to be above 18 years, with at least 8th standard education for projects above ₹10 lakh. MUDRA Kishor is for micro units with loan up to ₹5 lakh, no collateral required. CGTMSE covers collateral-free loans up to ₹2 crore for MSEs. Stand-Up India is for SC/ST and women entrepreneurs (minimum 51% ownership) with loan between ₹10 lakh and ₹1 crore. For PM Vishwakarma (launched 2023), artisans involved in textile work can avail up to ₹3 lakh loan with 5% interest subvention. Ensure your project report clearly mentions the scheme applied for and eligibility criteria.

Project Cost & Financing Structure

A typical face mask unit project cost breaks down as: Machinery (mask-making machine ₹1.5-8 lakh, ultrasonic welder ₹0.5-2 lakh, cutting machine ₹0.3-1 lakh) – 40-50%; Raw materials (meltblown fabric, non-woven, ear loops, nose wire) – 20-25%; Working capital (3 months) – 20-25%; Other costs (licenses, electricity deposit, furniture) – 5-10%. For a ₹10 lakh project under PMEGP, margin money is 5-10% (entrepreneur contribution), subsidy 15-35% (max ₹35 lakh for general, ₹50 lakh for special categories), and bank loan 55-80%. MUDRA Kishor loan up to ₹5 lakh covers 100% of project cost. CGTMSE covers collateral-free loan up to ₹2 crore with 1.5-2% guarantee fee. Include a detailed cost sheet in your project report.

Machinery & Production Process

Key machinery for a face mask unit: Automatic mask-making machine (produces 80-120 masks per minute) costs ₹6-15 lakh; semi-automatic (40-60 masks/min) ₹2-5 lakh; manual (10-20 masks/min) ₹1-2 lakh. Essential ancillary: ultrasonic welding machine for ear loops (₹0.5-2 lakh), nose wire insertion machine (₹0.3-1 lakh), and packing machine (₹0.5-1 lakh). Production process: Raw material feeding (3-ply non-woven fabric, meltblown layer) → folding → nose wire insertion → ear loop welding → cutting → packaging. Quality testing (bacterial filtration efficiency, pressure differential) may require investment of ₹1-2 lakh. Mention technical specifications and supplier references in the project report to enhance credibility.

Documents Required for Bank Loan

Essential documents for face mask unit loan application: 1) KYC of applicant (Aadhaar, PAN, Voter ID). 2) Business plan/project report with CMA data, DSCR, and 5-year projections. 3) Land documents (lease/ownership) or rent agreement. 4) Machinery quotations from suppliers. 5) Licenses: GST registration, Udyam registration, Trade license from local municipality, BIS certification (optional but recommended for quality assurance), and Fire department NOC. 6) For PMEGP: Educational certificates, caste certificate (if applicable), and project cost affidavit. 7) For CGTMSE: No collateral required but submit guarantee fee payment proof. Keep all documents scanned and organized for quick submission.

Step-by-Step Process to Start

Step 1: Conduct market research – identify target customers (hospitals, pharmacies, corporate offices). Step 2: Prepare detailed project report (use this guide). Step 3: Register business – obtain Udyam registration, GST, and trade license. Step 4: Apply for loan under suitable scheme (PMEGP via local DIC, MUDRA via bank, CGTMSE via bank). Step 5: Once loan approved, procure machinery and raw materials. Step 6: Set up unit – ensure proper ventilation, electricity (3-phase), and space (minimum 300 sq ft for semi-auto unit). Step 7: Start production and obtain necessary quality certifications. Step 8: Market your product – register on GeM portal for government supply, approach local distributors. Maintain proper accounting for loan 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

  • Anyone planning a face mask unit in India
  • Valid Aadhaar & PAN
  • Eligible for PMEGP, MUDRA Kishor, CGTMSE
  • Udyam (MSME) registration recommended
  • New or existing business
  • Premises with basic utilities
Export formats
PDF (A4)
Free: branded/watermarked
Word (.docx)
Paid plans
Excel (.xlsx)
Paid plans

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Why Use Cred for This Report?

Accurate face mask unit economics: NIC 17095, ₹3–25 Lakh project cost, machinery & raw material.

Scheme-ready for PMEGP, MUDRA Kishor, CGTMSE.

Bankable financials (CMA, DSCR ≥ 1.50, P&L, Balance Sheet, Cash Flow).

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Frequently Asked Questions

What is the cost of a face mask unit?

A typical face mask unit project costs ₹3–25 Lakh depending on scale, location and machinery. The report breaks down land/building, machinery, working capital and pre-operative costs.

Which scheme & how much loan for a face mask unit?

PMEGP, MUDRA Kishor, CGTMSE are commonly used. Banks fund ~75–90% of project cost as term loan + working capital.

How do I get the face mask unit report?

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 minimum project cost for a face mask manufacturing unit under PMEGP?

Under PMEGP, the minimum project cost for a face mask unit is typically ₹3 lakh for a manual/semi-automatic setup. However, the scheme allows projects up to ₹50 lakh (manufacturing). For a viable unit, a project cost of ₹5-10 lakh is recommended to ensure quality production and working capital.

Can I get a collateral-free loan for face mask manufacturing?

Yes, under CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises), you can get a collateral-free loan up to ₹2 crore for your face mask unit. Additionally, MUDRA Kishor provides collateral-free loans up to ₹5 lakh. PMEGP also does not require collateral for loans up to ₹10 lakh.

What is the DSCR required for a face mask unit bank loan?

Banks typically require a Debt Service Coverage Ratio (DSCR) of at least 1.25 for manufacturing projects. For face mask units, given the high demand, a DSCR of 1.5-2 is achievable. Your project report should show projected net profit and cash flows to meet this requirement.

How long does it take to get a PMEGP loan for face mask manufacturing?

The PMEGP loan process takes 2-4 months from application to disbursement. Steps: Apply online via PMEGP e-portal → District Task Force Committee (DTFC) meeting (1 month) → Bank loan sanction (2-4 weeks) → Disbursement after margin money deposit. Ensure your project report is complete to avoid delays.

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