Indicative ₹15 Lakh financing for a automobile workshop + a full bank-ready report with CMA data, DSCR ≥ 1.50 and 5-year projections.
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For an automobile workshop requiring ₹15 Lakh funding, a bank-ready project report is essential to secure a term loan under MUDRA Tarun, PMEGP, or CGTMSE. This report includes detailed CMA data, debt service coverage ratio (DSCR) analysis, and 5-year financial projections tailored to NIC 45200 (repair of motor vehicles). With a promoter margin of ₹1.5 Lakh and term loan of ₹13.5 Lakh at 11% over 7 years (EMI ~₹23,115/month), the report demonstrates viability to lenders. It covers equipment list, working capital assessment, breakeven analysis, and subsidy eligibility (e.g., PMEGP margin money subsidy of 15-35%). Without a professional report, banks often reject applications due to inadequate cash flow justification. This page provides specific, practical guidance for Indian entrepreneurs and CAs preparing such a report.
Any individual, partnership, or private limited company engaged in automobile repair (NIC 45200) can apply. For MUDRA Tarun, the loan limit is ₹10 Lakh to ₹20 Lakh; your ₹13.5 Lakh term loan qualifies. PMEGP offers subsidy of 15-35% on project cost (max ₹15 Lakh in general areas, ₹20 Lakh in special areas), reducing your effective loan burden. CGTMSE guarantees up to 85% of the loan without collateral, making it easier for first-generation entrepreneurs. Stand-Up India is for SC/ST/women but requires a higher project cost. PM Vishwakarma (2023) provides collateral-free loans up to ₹3 Lakh (not applicable here). NABARD schemes target rural areas. Ensure your business is not already availing similar subsidy from another scheme.
Total project cost: ₹15 Lakh. Promoter contribution: ₹1.5 Lakh (10%). Term loan: ₹13.5 Lakh (90%). The loan tenure is 7 years at an interest rate of ~11% (MCLR + spread). Monthly EMI: ₹23,115. The repayment schedule should be front-ended with a moratorium of 6-12 months for working capital buildup. Breakup of cost: Equipment (hydraulic lift, wheel alignment, AC machine, diagnostic tools) ~₹8 Lakh; furniture & fixtures ~₹1 Lakh; working capital (spares, consumables) ~₹4 Lakh; preliminary expenses ~₹2 Lakh. Ensure the CMA data shows adequate net profit to cover EMI: minimum DSCR of 1.5. For PMEGP, the subsidy is released after 50% loan disbursement and must be used to reduce the loan principal.
KYC documents (Aadhaar, PAN, Voter ID), business proof (GST registration, trade license, shop & establishment certificate), project report with CMA data, 3-year income tax returns (ITR) of proprietor/partners, bank statements (last 6 months), quotations for machinery/equipment, and proof of promoter contribution (savings account statement). For PMEGP, additionally submit educational qualification certificates, caste certificate (if applicable), and project cost summary. For CGTMSE, no collateral is needed but a declaration of no default. Ensure all documents are self-attested and notarized where required. Banks may also ask for a site visit report and valuation of existing assets.
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Financing structured for a ₹15 Lakh automobile workshop: margin, term loan & EMI.
Scheme-ready for MUDRA Tarun, PMEGP, CGTMSE.
Exact means of finance, CMA, DSCR ≥ 1.50 in the generated report.
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Indicatively ≈ ₹23,115/month on the ~₹13.5 Lakh term-loan portion (at 11% over 7 years), with ~₹1.5 Lakh promoter margin. The report computes exact figures.
Banks typically expect ~10% margin — about ₹1.5 Lakh for a ₹15 Lakh project — plus any scheme subsidy.
MUDRA Tarun, PMEGP, CGTMSE fit this range. The report is configured to your chosen scheme.
Yes, PMEGP provides subsidy of 15-35% on the project cost (max ₹15 Lakh in general areas, ₹20 Lakh in special areas). For a ₹15 Lakh project, the subsidy ranges from ₹2.25 Lakh to ₹5.25 Lakh. The subsidy is released after 50% loan disbursement and reduces the principal. However, you must apply through the nearest KVIC or DIC office and meet eligibility criteria (age 18+, minimum 8th pass for projects above ₹10 Lakh).
The monthly EMI is approximately ₹23,115. This is calculated using the formula: EMI = P × r × (1+r)^n / ((1+r)^n – 1), where P = ₹13,50,000, r = 11%/12 = 0.009167, n = 84 months. The total interest payable over 7 years is about ₹5.91 Lakh. Ensure your projected net profit covers at least 1.5 times the EMI to meet bank's DSCR requirement.
Public sector banks like SBI, Bank of Baroda, and Canara Bank actively lend under MUDRA Tarun. SBI's MUDRA loan interest rate is around 10-12% with processing fees nil. Private banks like HDFC and ICICI also offer but may require higher margin. Compare interest rates, processing time, and branch proximity. For a ₹13.5 Lakh loan, you can also approach Regional Rural Banks (RRBs) that often have lower rates. Check if the bank is empaneled under CGTMSE for collateral-free coverage.
Under CGTMSE, loans up to ₹2 Cr are collateral-free for MSEs. So you do not need to pledge property or assets. However, the bank may still require a personal guarantee of the proprietor/directors. For MUDRA Tarun, collateral is not mandatory but the bank may ask for third-party guarantee. If you opt for PMEGP, the subsidy reduces the loan amount, making it easier to get approval without collateral.