Indicative ₹2 Crore financing for a salon / barber shop + a full bank-ready report with CMA data, DSCR ≥ 1.50 and 5-year projections.
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For a ₹2 Crore salon/barber shop project, a bank-ready project report is essential to secure financing under MUDRA (though MUDRA caps at ₹10 lakh, so larger loans fall under PMEGP or standard term loans). This document outlines the project cost (₹2 Cr), promoter margin (₹20 Lakh), term loan (₹1.80 Cr), and projected EMI of ₹3,08,204/month at 11% over 7 years. It includes CMA data, DSCR analysis, and 5-year financial projections to demonstrate viability. Whether you're an entrepreneur in Delhi, Mumbai, or a Tier-2 city, this report addresses eligibility under NIC 96022, subsidy options (e.g., PM Vishwakarma for traditional barbers), and step-by-step loan processing. A professional report increases approval odds and helps you negotiate better terms.
For a ₹2 Cr salon/barber shop, MUDRA Shishu (₹50K) or Kishor (₹5L) are too small. Instead, consider PMEGP (subsidy up to 35% for general category, max project cost ₹50L), but for ₹2 Cr, a standard term loan from a bank under CGTMSE (collateral-free up to ₹2 Cr) is ideal. PM Vishwakarma (for traditional artisans) offers up to ₹1L at 5% interest, but not for large projects. Stand-Up India (for SC/ST/women) provides loans up to ₹1 Cr. Your best route: a term loan of ₹1.80 Cr with 10% promoter margin, secured by collateral or CGTMSE cover. Ensure your business is classified under NIC 96022 (barber shops) for scheme eligibility.
Total project cost: ₹2,00,00,000. Promoter contribution: ₹20,00,000 (10%). Term loan: ₹1,80,00,000 (90%). Use of funds: leasehold improvements (₹50L), equipment (chairs, dryers, styling stations – ₹70L), furniture (₹20L), IT/POS system (₹10L), working capital (₹30L), and contingency (₹20L). Loan repayment: 7 years at 11% p.a. – monthly EMI ₹3,08,204. DSCR should be above 1.5; with projected net profit of ₹40L/year, DSCR ≈ 1.8. Banks require collateral or CGTMSE guarantee fee (0.5-1.5% p.a. of loan amount).
For a ₹2 Cr salon loan, prepare: KYC (Aadhaar, PAN, Voter ID), business registration (GST, MSME Udyam, trade license), property documents if collateral, 3 years IT returns (personal & business), projected financials (5-year P&L, balance sheet, cash flow), CMA data, quotations for equipment, lease agreement, and CGTMSE application form. If applying under PMEGP, add project report, land documents, and subsidy application. For PM Vishwakarma, need artisan certificate. Banks may also ask for a detailed business plan with market analysis (target customers, pricing, competition).
For a ₹2 Cr project, direct subsidies are limited. PMEGP offers 15-35% subsidy on projects up to ₹50L, so you can split into multiple units or use for equipment only. PM Vishwakarma gives ₹1L at 5% interest for traditional barbers, but not for large setups. State-specific subsidies (e.g., for SC/ST/women) may apply. CGTMSE waives collateral for loans up to ₹2 Cr, saving you from pledging assets. Interest subvention (2-3%) under MUDRA is only for loans up to ₹10L. Focus on tax benefits: depreciation on equipment (15-40%) and deduction under Section 80JJAA for hiring employees.
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Financing structured for a ₹2 Crore salon / barber shop: margin, term loan & EMI.
Scheme-ready for MUDRA Shishu, MUDRA Kishor, PM Vishwakarma.
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 Shishu, MUDRA Kishor, PM Vishwakarma fit this range. The report is configured to your chosen scheme.
No, MUDRA loans are capped at ₹10 lakh (Shishu ₹50K, Kishor ₹5L, Tarun ₹10L). For ₹2 Cr, you need a term loan from a bank, possibly under CGTMSE for collateral-free coverage. PMEGP can support up to ₹50L with subsidy, but not the full amount.
The monthly EMI is approximately ₹3,08,204. This is calculated using the formula EMI = P × r × (1+r)^n / ((1+r)^n – 1), where P=1.80 Cr, r=11%/12=0.009167, n=84 months. Total interest over 7 years is about ₹79.89 lakh.
Yes, unless you avail CGTMSE coverage. CGTMSE provides collateral-free loans up to ₹2 Cr for MSMEs, but you pay a guarantee fee (0.5-1.5% p.a.). Without it, banks typically ask for property or fixed deposit as security.
Banks usually require a minimum DSCR of 1.25 to 1.5. For a ₹2 Cr project with projected annual net profit of ₹40 lakh and annual debt service of ₹37 lakh (EMI ×12), DSCR ≈ 1.08, which is low. You may need to increase profit projections or reduce loan tenure to improve DSCR.