Starting a dal mill with a project cost of ₹15 lakh is a viable small-scale food processing venture in India. This page provides a detailed project report for a dal mill, including financial projections, loan eligibility, EMI calculations, and available government subsidies. The project involves processing pulses like tur, chana, moong, and urad into split dal. We have structured the financing with a promoter margin of ₹1.5 lakh (10%) and a term loan of ₹13.5 lakh from a bank. At an 11% interest rate over 7 years, the monthly EMI works out to approximately ₹23,115. A bank-ready project report is crucial for loan approval; it includes CMA data, DSCR analysis, and 5-year financial projections (profitability, cash flow, balance sheet). This report also covers eligibility under schemes like PMFME (Ministry of Food Processing), PMEGP (KVIC), and CGTMSE collateral-free guarantee. Whether you are in Uttar Pradesh, Madhya Pradesh, Maharashtra, or Bihar, this template can be customized for your location. We provide practical insights for entrepreneurs and CAs to prepare a robust loan application.
To avail a ₹15 lakh dal mill loan, the applicant must be an Indian citizen aged 18+ with a viable business plan. Priority is given to entrepreneurs from SC/ST/OBC/Women/Minority categories under PMEGP. Under PMFME (PM Formalisation of Micro Food Processing Enterprises), you can get a capital subsidy of 35% (up to ₹10 lakh) for individual units. For this ₹15 lakh project, the subsidy could be up to ₹5.25 lakh, reducing your loan burden. CGTMSE provides collateral-free coverage up to ₹2 crore, so no third-party guarantee is needed for loans up to ₹15 lakh. Other schemes like Stand-Up India (for SC/ST/Women) and PM Vishwakarma (for traditional artisans) may also apply. Ensure your Aadhaar, PAN, and business registration (Udyam) are ready. The project report must show a DSCR above 1.25 and a debt-equity ratio of 3:1 or better.
The total project cost of ₹15 lakh is allocated as: Land & building (rented or owned) – ₹0; Plant & machinery (dal mill machine, grader, polisher, packaging) – ₹9.5 lakh; Working capital margin – ₹3 lakh; Pre-operative expenses – ₹2.5 lakh. Promoter contribution is 10% (₹1.5 lakh), and bank term loan is 90% (₹13.5 lakh). The loan tenure is 7 years with a moratorium of 6 months. At 11% p.a. reducing balance, the EMI is ₹23,115. The project is expected to generate annual revenue of ₹60 lakh (processing 300 tonnes of pulses at ₹20/kg margin), with net profit after tax of ₹4.5 lakh in Year 1, growing to ₹8 lakh by Year 5. The Debt Service Coverage Ratio (DSCR) is 1.45 in Year 1, improving to 2.1 by Year 5. Working capital limit (OD/CC) of ₹2 lakh may also be required, secured by stock and book debts.
For loan application, prepare: 1) KYC documents (Aadhaar, PAN, Voter ID). 2) Business proof (Udyam registration, GST registration if turnover >₹40 lakh). 3) Project report with CMA data, 5-year projections, DSCR calculation. 4) Quotations for machinery (at least 2). 5) Land documents (if owned) or rent agreement. 6) Caste certificate (if applying under reserved category). The step-by-step process: Step 1 – Prepare a detailed project report (use our template). Step 2 – Apply online on PMEGP portal (kviconline.gov.in) or PMFME portal (pmfme.mofpi.gov.in). Step 3 – Get project report appraised by bank (SBI, PNB, Bank of Baroda, etc.). Step 4 – Bank sanctions loan after CGTMSE coverage. Step 5 – Disbursement in phases (machinery supplier payment, then working capital). Timeline: 4-8 weeks. Tip: Keep 10% margin money ready; banks may ask for 15% if credit score is low.
Every report is formatted to the exact standards required by Indian banks and government departments.
A complete 14-section project report — the same document your bank officer will read. Every table below is real: the repayment schedule, the DSCR, the CMA workings, the balance sheet. Generate yours free, then pay ₹499 for the clean copy.
Project Report
Consumer electronics repair, servicing & spare-parts retail
Vaishali Nagar, Jaipur, Rajasthan
Submitted to the Branch Manager · Punjab National Bank, Vaishali Nagar, Jaipur
The unit has been in operation since 2019 and currently services 20–25 jobs a day from a 350 sq.ft. ground-floor shop, with a recorded customer base of 600+ households in the Vaishali Nagar catchment. The promoter proposes to expand the workbench capacity, add board-level diagnostic equipment and carry a spare-parts inventory so that 70% of repairs can be completed same-day instead of the present 3-day turnaround.
The project is assessed at a cost of ₹10.00 lakh, financed by a ₹8.00 lakh MUDRA Tarun term loan and ₹2.00 lakh of promoter's own contribution (20%). At the projected turnover the unit services its debt 5.87 times over on average, against the 1.25 minimum, and breaks even at 62% of Year-1 sales — leaving substantial cushion against a demand shortfall.
Recommendation: the proposal is technically feasible, commercially viable and financially sound. It is recommended for sanction of a term loan of ₹8.00 lakh repayable in 60 monthly instalments.
| Particulars | Basis | Amount (₹) |
|---|---|---|
| Renovation & civil work | 200 sq.ft. additional area, electrical, ESD flooring | 1,20,000 |
| Diagnostic & repair equipment | As per quotations — Annexure IX | 2,40,000 |
| Computers, software & service tools | 2 systems, billing software, tool kits | 80,000 |
| Furniture, air-conditioning & display fixtures | Counter, racks, 1.5 T AC | 60,000 |
| Margin money for working capital | Stock, receivables & operating cash | 5,00,000 |
| Total project cost | 10,00,000 |
A 5% contingency is built into the civil and equipment estimates. All capital items are supported by three quotations each.
| Source | Amount (₹) | % of project cost |
|---|---|---|
| Promoter's own contribution | 2,00,000 | 20.00% |
| Term loan under MUDRA Tarun | 8,00,000 | 80.00% |
| Subsidy / margin money grant | Nil | — |
| Total | 10,00,000 | 100.00% |
Promoter's contribution is held in Savings A/c No. XXXXXX4417 with Punjab National Bank, Vaishali Nagar (statement enclosed). Debt–equity at inception is 4.00 : 1, improving to 1.65 : 1 by the end of Year 1.
For PMEGP, PMFME, NABARD and state-subsidy proposals this section additionally carries the margin-money subsidy workings, the subsidy-adjusted repayment and a second DSCR computed net of subsidy.
| Equipment | Qty | Rate (₹) | Amount (₹) |
|---|---|---|---|
| BGA rework station with preheater | 1 | 95,000 | 95,000 |
| Digital storage oscilloscope with probes | 1 | 45,000 | 45,000 |
| Universal IC programmer | 1 | 35,000 | 35,000 |
| Ultrasonic PCB cleaning unit | 1 | 22,000 | 22,000 |
| Soldering / desoldering stations | 3 | 8,000 | 24,000 |
| Precision tool kits & ESD workbench | 2 | 9,500 | 19,000 |
| Total | 2,40,000 |
Suppliers: Fine Tools India (Jaipur), Sagar Electronics (Delhi), Techno Instruments (Jaipur). Quotations enclosed at Annexure IX. Delivery within 30 days of sanction; installation by the supplier at no extra cost.
| Particulars | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Service & repair income | 24.00 | 28.32 | 32.57 | 36.80 | 41.22 |
| Sale of spares & accessories | 9.60 | 11.33 | 13.03 | 14.73 | 16.49 |
| Total revenue | 33.60 | 39.65 | 45.60 | 51.53 | 57.71 |
| Cost of spares & materials (45%) | 15.12 | 17.84 | 20.52 | 23.19 | 25.97 |
| Gross profit | 18.48 | 21.81 | 25.08 | 28.34 | 31.74 |
| Salaries & wages | 6.72 | 7.26 | 7.84 | 8.47 | 9.14 |
| Rent | 1.44 | 1.51 | 1.59 | 1.67 | 1.75 |
| Power & fuel | 0.72 | 0.78 | 0.83 | 0.89 | 0.95 |
| Repairs & maintenance | 0.30 | 0.33 | 0.36 | 0.39 | 0.42 |
| Marketing & business promotion | 0.36 | 0.40 | 0.44 | 0.48 | 0.52 |
| Administrative & miscellaneous | 0.60 | 0.66 | 0.72 | 0.78 | 0.84 |
| Insurance | 0.12 | 0.13 | 0.14 | 0.15 | 0.16 |
| Total operating expenses | 10.26 | 11.07 | 11.92 | 12.83 | 13.78 |
| EBITDA | 8.22 | 10.74 | 13.16 | 15.51 | 17.96 |
| Depreciation (WDV, as per IT Act) | 0.86 | 0.66 | 0.52 | 0.42 | 0.35 |
| EBIT | 7.36 | 10.08 | 12.64 | 15.09 | 17.61 |
| Interest on term loan | 0.78 | 0.64 | 0.48 | 0.31 | 0.11 |
| Profit before tax | 6.58 | 9.44 | 12.16 | 14.78 | 17.50 |
| Income tax (as applicable) | 0.30 | 0.62 | 0.95 | 1.35 | 1.80 |
| Profit after tax | 6.28 | 8.82 | 11.21 | 13.43 | 15.70 |
Revenue grows 18%, 15%, 13% and 12% over the five years, against 22% achieved by the unit in the last audited year. Capacity utilisation moves from 72% to 91%; the projections do not assume any increase in service rates.
| Year | Opening balance | Principal repaid | Interest | Total outgo | Closing balance |
|---|---|---|---|---|---|
| 1 | 8,00,000 | 1,28,404 | 77,937 | 2,06,341 | 6,71,596 |
| 2 | 6,71,596 | 1,42,555 | 63,787 | 2,06,341 | 5,29,041 |
| 3 | 5,29,041 | 1,58,265 | 48,077 | 2,06,341 | 3,70,776 |
| 4 | 3,70,776 | 1,75,706 | 30,635 | 2,06,341 | 1,95,070 |
| 5 | 1,95,070 | 1,95,070 | 11,272 | 2,06,341 | Nil |
| Total | 8,00,000 | 2,31,707 | 10,31,705 |
| Particulars | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Profit after tax | 6.28 | 8.82 | 11.21 | 13.43 | 15.70 |
| Add: depreciation | 0.86 | 0.66 | 0.52 | 0.42 | 0.35 |
| Add: interest on term loan | 0.78 | 0.64 | 0.48 | 0.31 | 0.11 |
| Cash available for debt service (A) | 7.92 | 10.12 | 12.21 | 14.16 | 16.16 |
| Principal repayment | 1.28 | 1.43 | 1.58 | 1.76 | 1.95 |
| Interest | 0.78 | 0.64 | 0.48 | 0.31 | 0.11 |
| Total debt service (B) | 2.06 | 2.07 | 2.06 | 2.07 | 2.06 |
| DSCR (A ÷ B) | 3.84 | 4.89 | 5.93 | 6.84 | 7.84 |
Average DSCR over the tenure: 5.87. The minimum acceptable to banks is 1.25; the unit crosses that threshold even if Year-1 revenue falls 60% short of projection.
| Particulars | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| LIABILITIES | |||||
| Capital account (net of drawings) | 4.08 | 7.50 | 12.11 | 17.74 | 24.44 |
| Term loan — long-term portion | 5.29 | 3.71 | 1.95 | — | — |
| Term loan — current maturity | 1.43 | 1.58 | 1.76 | 1.95 | — |
| Sundry creditors (30 days) | 1.26 | 1.49 | 1.71 | 1.93 | 2.16 |
| Other current liabilities & provisions | 0.30 | 0.35 | 0.40 | 0.45 | 0.50 |
| Total | 12.36 | 14.63 | 17.93 | 22.07 | 27.10 |
| ASSETS | |||||
| Net fixed assets | 4.14 | 3.48 | 2.96 | 2.54 | 2.19 |
| Stock of spares (45 days) | 1.86 | 2.20 | 2.53 | 2.86 | 3.20 |
| Sundry debtors (10 days) | 0.92 | 1.09 | 1.25 | 1.41 | 1.58 |
| Cash & bank balance | 5.44 | 7.86 | 11.19 | 15.26 | 20.13 |
| Total | 12.36 | 14.63 | 17.93 | 22.07 | 27.10 |
| Sources | Amount | Applications | Amount |
|---|---|---|---|
| Profit after tax | 6.28 | Capital expenditure | 5.00 |
| Depreciation | 0.86 | Increase in stock | 1.86 |
| Increase in creditors & provisions | 1.56 | Increase in debtors | 0.92 |
| Term loan drawn | 8.00 | Repayment of term loan | 1.28 |
| Promoter's capital introduced | 2.00 | Drawings | 4.20 |
| Closing cash & bank | 5.44 | ||
| Total | 18.70 | Total | 18.70 |
Working capital is assessed under the Tandon Committee Method II, the basis used by banks for limits up to ₹5 crore. The workings below are drawn from the Year-1 projections above.
| Particulars | Amount |
|---|---|
| Stock of spares | 1.86 |
| Sundry debtors | 0.92 |
| Cash & bank balance | 5.44 |
| Total current assets (TCA) | 8.22 |
| Sundry creditors | 1.26 |
| Other current liabilities & provisions | 0.30 |
| Current maturity of term loan | 1.43 |
| Other current liabilities (OCL) | 2.99 |
| Working capital gap (TCA − OCL) | 5.23 |
| 25% of TCA — stipulated margin | 2.06 |
| Maximum permissible bank finance (Method II) | 3.18 |
No cash-credit limit is sought in this proposal; the assessment is presented because bank officers ask for it. Were the limit of ₹3.18 lakh availed, the current ratio would stand at 1.33 — above the 1.25 stipulated by IBA.
CMA statements included in the full report
| Ratio | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Bank norm |
|---|---|---|---|---|---|---|
| Current ratio | 2.75 | 3.26 | 3.87 | 4.51 | 9.36 | ≥ 1.25 |
| Debt–equity ratio | 1.65 | 0.71 | 0.31 | 0.11 | Nil | ≤ 3.00 |
| DSCR | 3.84 | 4.89 | 5.93 | 6.84 | 7.84 | ≥ 1.25 |
| Net profit margin | 18.7% | 22.2% | 24.6% | 26.1% | 27.2% | — |
| Interest coverage | 9.4 | 15.8 | 26.3 | 48.7 | 160.1 | ≥ 2.00 |
| Particulars | Amount |
|---|---|
| Fixed costs (salaries, rent, admin, depreciation, interest) | 10.88 |
| Variable costs (materials, power, maintenance) | 16.14 |
| Contribution (revenue − variable costs) | 17.46 |
| P/V ratio | 51.96% |
| Break-even sales | 20.94 |
| Break-even as % of Year-1 revenue | 62.3% |
| Cash break-even as % of Year-1 revenue | 57.4% |
Strengths
Weaknesses
Opportunities
Threats
Free to generate · ₹499 for the clean PDF + Word + Excel · 30-day money-back guarantee
Create your account in 30 seconds — no credit card needed.
Enter applicant details, select the scheme, set your loan amount.
The full report is drafted for you — financials, projections and CMA data — in under 60 seconds.
Preview free, then download the clean PDF plus Word (.docx) + Excel (.xlsx) once unlocked. Submit to bank or DIC office.
Financing structured for a ₹15 Lakh dal mill: margin, term loan & EMI.
Scheme-ready for PMFME, PMEGP, 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.
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.
PMFME, PMEGP, CGTMSE fit this range. The report is configured to your chosen scheme.
The EMI is approximately ₹23,115 per month. This is calculated using the reducing balance method. You can use an EMI calculator to verify. The total interest payable over 7 years is about ₹5.9 lakh, making the total repayment ₹19.4 lakh.
Yes, under PMFME, individual micro food processing units can get a capital subsidy of 35% of the eligible project cost, up to ₹10 lakh. For a ₹15 lakh project, the subsidy would be ₹5.25 lakh, provided you meet the scheme criteria (e.g., FSSAI registration, DPR). The subsidy is released after the unit is operational.
Under CGTMSE, loans up to ₹2 crore are collateral-free. So for a ₹15 lakh term loan, no collateral or third-party guarantee is needed. However, the bank may ask for a personal guarantee of the promoter. The CGTMSE cover fee (0.75% for up to ₹5 lakh, 0.85% above) is borne by the bank.
Banks typically require a Debt Service Coverage Ratio (DSCR) of at least 1.25, a Current Ratio above 1.33, and a Debt-Equity ratio of 3:1 or lower. For a ₹15 lakh project with ₹1.5 lakh equity, the debt-equity is 9:1, which is acceptable if DSCR is strong. The project report should show increasing profitability and positive cash flow.