Indicative ₹1 Crore financing for a agarbatti manufacturing + a full bank-ready report with CMA data, DSCR ≥ 1.50 and 5-year projections.
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This page provides a comprehensive project report for an Agarbatti Manufacturing unit with a total project cost of ₹1 Crore, designed to help Indian entrepreneurs and CAs prepare a bank-ready loan application. The report includes detailed CMA (Credit Monitoring Arrangement) data, DSCR (Debt Service Coverage Ratio) calculations, and 5-year financial projections. The proposed financing structure involves a promoter margin of ₹10 Lakh (10%) and a term loan of ₹90 Lakh (90%). The estimated EMI at an 11% interest rate over a 7-year tenure is ₹1,54,102 per month. This project is eligible for government schemes such as PMEGP (which offers subsidy up to 35% of project cost for general category, capped at ₹25 Lakh), MUDRA Kishor (loan up to ₹10 Lakh, but for this size, MUDRA Tarun up to ₹50 Lakh may be more relevant), and PM Vishwakarma (which provides collateral-free credit up to ₹1 Lakh initially, extendable to ₹2 Lakh, with 5% interest subvention). The report covers all essential aspects including machinery specifications, raw material sourcing, production capacity, market analysis, and profitability assessment, ensuring a strong case for loan approval.
To avail bank loan for a ₹1 Crore Agarbatti unit, the entrepreneur must be an Indian citizen aged 18+ with a viable business plan. For PMEGP, the project cost must not exceed ₹50 Lakh (manufacturing) for general category, so ₹1 Crore exceeds the limit; however, the subsidy component can be claimed only up to ₹25 Lakh (35% of ₹50 Lakh max). For the balance, MUDRA Kishor (₹10 Lakh) or Tarun (₹50 Lakh) can be combined, but MUDRA loans are capped at ₹50 Lakh. Alternatively, a conventional term loan under CGTMSE (collateral-free up to ₹2 Crore) can be used. PM Vishwakarma is limited to ₹1 Lakh (extendable to ₹2 Lakh) with 5% interest subvention, suitable for small components. The promoter must contribute 10% margin (₹10 Lakh) and provide collateral if required. Subsidy under PMEGP is released after project implementation, not upfront. The project must be located in a non-polluting zone with necessary clearances.
Total project cost: ₹1,00,00,000. Break-up: Land & building (if not rented) ₹20 Lakh, Plant & machinery (agarbatti rolling machine, mixing machine, drying racks, packaging) ₹50 Lakh, Working capital margin ₹20 Lakh, Preliminary expenses ₹5 Lakh, Contingency ₹5 Lakh. Financing: Promoter contribution ₹10 Lakh (10%), Term loan ₹90 Lakh (90%). The term loan is repayable in 84 months (7 years) with a moratorium of 6-12 months. At 11% p.a., monthly EMI is ₹1,54,102. The DSCR should be above 1.5, typically achieved with annual net profit of ₹25-30 Lakh. The CMA data should show current ratio >1.33, debt-equity ratio <3:1. For working capital, a cash credit limit of ₹30 Lakh may be sanctioned against inventory and receivables. The project report must include a sensitivity analysis at 10% increase in raw material cost and 10% decrease in sales.
For a ₹1 Crore agarbatti loan, submit: 1) Business plan & project report (CMA format, 5-year projections). 2) KYC documents (Aadhaar, PAN, Voter ID). 3) Proof of business address (rent agreement or ownership). 4) GST registration (if turnover >₹40 Lakh). 5) Udyam registration (MSME). 6) Quotations for machinery (at least 3). 7) Land documents (sale deed or lease). 8) Caste certificate (if applying under PMEGP category). 9) IT returns of last 3 years (if existing business). 10) Bank statements of last 6 months. 11) Partnership deed/ MoA if company. 12) Projected balance sheet, P&L, cash flow for 5 years. 13) CMA data showing DSCR, current ratio, debt-equity. 14) Collateral documents (property papers, if any). 15) Environmental clearance (if required). Ensure all documents are self-attested and notarized where needed.
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Financing structured for a ₹1 Crore agarbatti manufacturing: margin, term loan & EMI.
Scheme-ready for PMEGP, MUDRA Kishor, PM Vishwakarma.
Exact means of finance, CMA, DSCR ≥ 1.50 in the generated report.
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Indicatively ≈ ₹1,54,102/month on the ~₹90 Lakh term-loan portion (at 11% over 7 years), with ~₹10 Lakh promoter margin. The report computes exact figures.
Banks typically expect ~10% margin — about ₹10 Lakh for a ₹1 Crore project — plus any scheme subsidy.
PMEGP, MUDRA Kishor, PM Vishwakarma fit this range. The report is configured to your chosen scheme.
The EMI is ₹1,54,102 per month. This is calculated using the formula: EMI = [P x R x (1+R)^N] / [(1+R)^N-1], where P=90,00,000, R=11%/12=0.009167, N=84 months. The total interest payable over 7 years is approximately ₹39,44,568, making the total repayment ₹1,29,44,568.
PMEGP subsidy is limited to 35% of the project cost for general category, capped at ₹25 Lakh for manufacturing. Since your project cost is ₹1 Crore, the maximum subsidy you can claim is ₹25 Lakh (35% of ₹71.43 Lakh, but capped). However, the project cost must not exceed ₹50 Lakh to be eligible for PMEGP. So for ₹1 Crore, you cannot get full PMEGP subsidy. You can consider a combination: ₹50 Lakh under PMEGP (with subsidy) and the remaining ₹50 Lakh under MUDRA Tarun or conventional loan.
The promoter contribution is 10% of the project cost, i.e., ₹10 Lakh. This can be in the form of cash, land, or existing assets. For PMEGP, the promoter contribution is 5% for general category and 10% for others. For conventional loans, banks may require 15-20% margin. Ensure you have the funds ready before applying.
Typically 4-8 weeks from application to disbursement, provided all documents are complete. The process includes: project report submission (1 week), bank appraisal (2-3 weeks), credit committee approval (1-2 weeks), and disbursement (1 week). Delays may occur if collateral valuation or legal checks are needed. Using a CA or consultant can expedite the process.