For an aspiring footwear shop owner in India, a ₹1 Lakh bank loan can be a game-changer. This project report is designed for a retail footwear store (NIC 47722) seeking MUDRA Kishor or Tarun loan under CGTMSE coverage. The report includes promoter margin of ₹10,000 (10%), term loan of ₹90,000, and a repayment schedule of 7 years at 11% p.a. resulting in an EMI of approximately ₹1,541. It provides CMA data, DSCR analysis, and 5-year financial projections to demonstrate viability. A bank-ready report is crucial for loan approval, as it shows the bank that the business can generate sufficient cash flow to repay the loan while meeting operational expenses. This document covers project cost, profitability, break-even analysis, and subsidy eligibility under PMEGP or PMFME if applicable. Whether you are in a small town or metro, this template ensures your application stands out.
To qualify for a ₹1 Lakh footwear shop loan under MUDRA, the applicant must be an Indian citizen above 18 years with a viable business plan. MUDRA Kishor covers loans up to ₹50,000, while MUDRA Tarun covers ₹50,001 to ₹10 lakh. Since your requirement is ₹90,000 (after promoter margin), you can apply under MUDRA Tarun. CGTMSE guarantee covers up to ₹2 crore without collateral, making it easier for first-generation entrepreneurs. PMEGP provides subsidy of 15-35% (max ₹15 lakh) for manufacturing projects, but retail trade is generally not eligible; however, check with your local KVIC. PMFME is for food processing, not footwear. Stand-Up India is for SC/ST/women with higher loan amounts. For this project, MUDRA Tarun with CGTMSE is the most practical option.
The total project cost is ₹1,00,000. Promoter contribution: ₹10,000 (10%). Bank loan: ₹90,000 (90%). The loan is repayable over 7 years (84 months) at an interest rate of 11% p.a. (reducing balance). Monthly EMI: ₹1,541. The funds can be used for: shop interior/fixtures (₹30,000), initial inventory of footwear (₹50,000), signage and basic equipment (₹10,000), and working capital (₹10,000). Ensure you provide quotations for furniture, rent agreement, and supplier invoices. The DSCR should be above 1.25; with estimated monthly net profit of ₹3,000-5,000, the DSCR will be comfortable. The report includes 5-year projected profit & loss, balance sheet, and cash flow statements.
To apply for a MUDRA loan for your footwear shop, you need: (1) KYC documents (Aadhaar, PAN, Voter ID). (2) Business address proof (rent agreement or utility bill). (3) 2-3 years ITR (if applicable) or Form 16. (4) Bank statement of last 6 months. (5) Project report with CMA data (this document). (6) Quotations for furniture, inventory, and equipment. (7) Caste certificate (if applying under Stand-Up India or for subsidy). (8) GST registration (recommended for turnover above ₹40 lakh). For PMEGP, you also need a project profile from KVIC. Keep copies of all documents and submit to your nearest public sector bank or regional rural bank. Many banks have online portals for MUDRA applications.
Every report is formatted to the exact standards required by Indian banks and government departments.
Create your account in 30 seconds — no credit card needed.
Enter applicant details, select the scheme, set your loan amount.
Our AI drafts the full report with financials, projections, and CMA data in under 60 seconds.
Export PDF on the free plan (branded). Upgrade for clean exports plus Word (.docx) + Excel (.xlsx). Submit to bank or DIC office.
Financing structured for a ₹1 Lakh footwear shop: margin, term loan & EMI.
Scheme-ready for MUDRA Kishor, MUDRA Tarun, CGTMSE.
Exact means of finance, CMA, DSCR ≥ 1.50 in the generated report.
Change the amount or city anytime and re-download.
Word + Excel exports; first report free, clean export ₹499.
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.
MUDRA Kishor, MUDRA Tarun, CGTMSE fit this range. The report is configured to your chosen scheme.
PMEGP subsidy is primarily for manufacturing and service projects. Retail trade (including footwear shops) is generally not covered. However, if your shop involves some manufacturing like custom footwear, you may be eligible. Check with your local KVIC or DIC for clarification. Alternatively, MUDRA loans do not offer direct subsidy but have lower interest rates and CGTMSE coverage.
The EMI for a ₹90,000 loan at 11% per annum (reducing balance) over 7 years (84 months) is approximately ₹1,541. You can use an EMI calculator online for exact figures. Total interest payable over 7 years would be around ₹39,444, making the total repayment about ₹1,29,444.
No, collateral is not required for MUDRA loans up to ₹10 lakh. The CGTMSE scheme provides a guarantee cover up to ₹2 crore without collateral. However, the bank may ask for a personal guarantee or third-party guarantee in some cases. For ₹90,000, it is typically unsecured.
MUDRA loan approval usually takes 7-15 working days from submission of complete documents. Some banks offer faster processing for loans under ₹2 lakh. Ensure your project report is accurate and all documents are in order to avoid delays. Online applications through PSB Loans in 59 Minutes portal can be approved in minutes.