Launching a restaurant with a ₹2 Crore project cost requires a bank-ready project report that goes beyond a simple menu and location plan. For an entrepreneur in Delhi, for example, this report must include detailed CMA data, projected balance sheets, and 5-year financial projections to satisfy lenders like SBI or HDFC. The project is typically structured with a ₹20 Lakh promoter margin and a ₹1.80 Crore term loan, resulting in an EMI of approximately ₹3,08,204 per month at 11% over 7 years. Understanding applicable schemes—MUDRA Tarun (loans up to ₹10 Lakh, not suitable for this size), PMEGP (subsidy up to ₹35 Lakh for general category), and CGTMSE (credit guarantee up to ₹2 Crore without collateral)—is critical. This page provides a practical guide to structuring your project report, calculating DSCR, and navigating subsidy eligibility for a restaurant under NIC 56101.
For a ₹2 Crore restaurant project, MUDRA Tarun (max ₹10 Lakh) is not applicable. Instead, focus on PMEGP (subsidy of 15-25% on project cost up to ₹50 Lakh, so max subsidy ~₹12.5 Lakh for your project if you keep margin money separate) and CGTMSE (guarantee cover up to ₹2 Crore, eliminating collateral requirement). Stand-Up India (for SC/ST/women) offers loans up to ₹1 Crore, so you would need a combination. PM Vishwakarma (for artisans) is not relevant. Ensure your project report highlights that 50% of the project cost (₹1 Crore) is for plant and machinery/furniture to qualify for CGTMSE. The business must be a sole proprietorship, partnership, or private limited company with a viable location and FSSAI license.
A ₹2 Crore restaurant project typically allocates: Land & building (if owned, ₹0; if lease, deposit ₹10 Lakh), civil works/renovation (₹60 Lakh), kitchen equipment (₹40 Lakh), furniture & fixtures (₹30 Lakh), IT & POS systems (₹5 Lakh), pre-operative expenses (₹10 Lakh), and working capital (₹45 Lakh). Promoter margin is ₹20 Lakh (10%), and term loan is ₹1.80 Crore. Working capital limit (OD/CC) of ₹45 Lakh may be separate. EMI on ₹1.80 Crore at 11% for 7 years is ₹3,08,204 per month. Ensure your DSCR (Debt Service Coverage Ratio) is above 1.5; with net profit of ₹50 Lakh and depreciation of ₹15 Lakh, DSCR = (50+15+interest)/ (interest+principal) > 1.5.
For a ₹2 Crore restaurant loan, you need: KYC (Aadhaar, PAN, passport photos), business proof (GST registration, FSSAI license, trade license, fire NOC, shop & establishment certificate), financials (last 3 years IT returns if existing, or projected CMA for new), property documents (lease deed or ownership), project report with 5-year projections, and scheme-specific forms (PMEGP application, CGTMSE cover). For PMEGP, attach a project profile from the KVIC portal. For CGTMSE, no collateral is needed if loan is up to ₹2 Crore. Also include a detailed menu costing and revenue model showing average ticket size of ₹500-800 and 70% occupancy.
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Financing structured for a ₹2 Crore restaurant: margin, term loan & EMI.
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Exact means of finance, CMA, DSCR ≥ 1.50 in the generated report.
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Indicatively ≈ ₹3,08,204/month on the ~₹1.80 Cr term-loan portion (at 11% over 7 years), with ~₹20 Lakh promoter margin. The report computes exact figures.
Banks typically expect ~10% margin — about ₹20 Lakh for a ₹2 Crore project — plus any scheme subsidy.
MUDRA Tarun, PMEGP, CGTMSE fit this range. The report is configured to your chosen scheme.
No. MUDRA loans are capped at ₹10 Lakh (Tarun) for non-farm activities. For a ₹2 Crore restaurant, you must apply under a term loan from a bank, supported by CGTMSE guarantee (up to ₹2 Crore without collateral) or PMEGP subsidy (up to ₹35 Lakh for general category, but only on project cost up to ₹50 Lakh). Consider combining PMEGP for the first ₹50 Lakh and a regular term loan for the balance.
The EMI is approximately ₹3,08,204 per month. This assumes a reducing balance interest rate of 11% per annum over a 7-year tenure. Your project report must show that net profit after tax and depreciation is sufficient to cover this EMI plus interest on working capital. Typically, a DSCR above 1.5 is required.
PMEGP subsidy is 15% of the project cost for general category (25% for special categories) up to a maximum project cost of ₹50 Lakh. So the maximum subsidy is ₹7.5 Lakh (general) or ₹12.5 Lakh (SC/ST/women). For a ₹2 Crore project, you can only avail subsidy on the first ₹50 Lakh if you split the project into two parts (e.g., PMEGP for ₹50 Lakh and regular loan for ₹1.50 Crore). The balance will not get subsidy.
CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) provides a guarantee cover of up to 85% of the loan amount (up to ₹2 Crore) without requiring collateral. For a ₹2 Crore restaurant loan, you can get a term loan of ₹1.80 Crore covered under CGTMSE, meaning the bank does not ask for property or fixed deposit as security. The guarantee fee (0.75-1.5% per annum) is borne by the borrower. This is ideal for entrepreneurs who lack collateral.