Indicative ₹1 Lakh financing for a agarbatti manufacturing + a full bank-ready report with CMA data, DSCR ≥ 1.50 and 5-year projections.
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Starting an agarbatti manufacturing unit with a ₹1 lakh investment is a viable micro-enterprise under NIC 32909, eligible for PMEGP, MUDRA Kishor, and PM Vishwakarma schemes. A bank-ready project report is critical for loan approval—it provides lenders with a clear picture of your business viability. This report includes CMA (Credit Monitoring Arrangement) data, DSCR (Debt Service Coverage Ratio) of at least 1.25, and 5-year financial projections covering sales, costs, and profitability. It also details the project cost (₹1 lakh), promoter contribution (₹10,000), term loan (₹90,000), and EMI of ₹1,541/month at 11% over 7 years. With the right report, you can access subsidies up to 35% (PMEGP) or 25% (PM Vishwakarma) and secure a MUDRA loan without collateral. This page provides a practical breakdown of eligibility, documentation, and step-by-step guidance to create a project report that banks accept.
Any Indian entrepreneur aged 18+ can apply. For PMEGP, you need at least 8th standard education; for PM Vishwakarma, you must be a traditional artisan. MUDRA Kishor (₹50,001–₹5 lakh) requires no collateral. PMEGP offers 35% subsidy (₹35,000) for general category, 45% for SC/ST/OBC/women. PM Vishwakarma provides 25% subsidy (up to ₹25,000) plus 5% interest subvention. The project cost of ₹1 lakh includes machinery (agarbatti rolling machine, raw materials) and working capital. You must contribute 10% promoter margin (₹10,000). The loan of ₹90,000 is repayable in 7 years at 11% interest, with EMI ₹1,541/month. Ensure your project report shows a DSCR above 1.25 to qualify.
To apply under PMEGP, MUDRA, or PM Vishwakarma, prepare: Aadhaar, PAN, bank statement (6 months), address proof, caste certificate (if applicable), educational certificate (8th pass for PMEGP), and a detailed project report. For PM Vishwakarma, you need artisan ID (Aadhaar-linked) and proof of traditional skill. The project report must include CMA data, 5-year projected P&L, balance sheet, cash flow, and DSCR calculation. Also attach quotations for machinery (e.g., agarbatti rolling machine ₹30,000–₹40,000, raw materials ₹20,000), rent agreement (if rented premises), and GST registration (optional but recommended). Bank will also ask for a business plan covering production capacity (approx. 50–100 kg/day) and marketing strategy.
1. Prepare a bank-ready project report using a template or hire a CA. Include NIC code 32909, project cost ₹1 lakh, promoter margin ₹10,000, loan ₹90,000. 2. Choose scheme: Apply online for PMEGP (kviconline.gov.in), MUDRA (via bank), or PM Vishwakarma (pmvishwakarma.gov.in). 3. Submit application with documents to your nearest bank (PSU recommended). 4. Bank evaluates project report—ensure DSCR >1.25, IRR >15%. 5. Upon approval, sign loan agreement. Subsidy (if applicable) is released after 50% disbursement. 6. Purchase machinery and start production. EMI of ₹1,541/month starts after 6-month moratorium (if allowed). Keep all receipts for subsidy claim. Typical timeline: 2–4 weeks for approval.
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Financing structured for a ₹1 Lakh 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 ≈ ₹1,541/month on the ~₹90,000 term-loan portion (at 11% over 7 years), with ~₹10,000 promoter margin. The report computes exact figures.
Banks typically expect ~10% margin — about ₹10,000 for a ₹1 Lakh project — plus any scheme subsidy.
PMEGP, MUDRA Kishor, PM Vishwakarma fit this range. The report is configured to your chosen scheme.
Yes, under MUDRA Kishor (up to ₹5 lakh) and PM Vishwakarma, no collateral is required. PMEGP also does not demand collateral for loans up to ₹10 lakh. The loan of ₹90,000 is fully unsecured. However, the bank may ask for a personal guarantee or third-party guarantee in some cases.
The EMI is approximately ₹1,541 per month. This is calculated using the formula: EMI = P × r × (1+r)^n / ((1+r)^n – 1), where P=90,000, r=11%/12=0.009167, n=84 months. Total interest payable over 7 years is about ₹39,444.
For a ₹1 lakh project, PMEGP subsidy is 35% (₹35,000) for general category and 45% (₹45,000) for SC/ST/OBC/women. The subsidy is released after 50% loan disbursement and is credited to your loan account, reducing your effective loan burden.
Banks typically require a Debt Service Coverage Ratio (DSCR) of at least 1.25, indicating enough cash flow to cover loan payments. Also show Internal Rate of Return (IRR) above 15%, and a payback period within 3–4 years. Include a 5-year projected profit margin of 20–25%.