Indicative ₹2 Lakh financing for a potato chips unit + a full bank-ready report with CMA data, DSCR ≥ 1.50 and 5-year projections.
No credit card • Free preview • Ready in 60 seconds
Starting a potato chips unit with a ₹2 lakh loan requires a bank-ready project report that demonstrates viability. This report is specifically designed for an MSME in the food processing sector (NIC 10304) seeking a ₹1.8 lakh term loan with a ₹20,000 promoter contribution. It includes CMA data, DSCR analysis, and 5-year financial projections to satisfy bank appraisal norms. Key schemes applicable: PMFME (up to 35% capital subsidy, max ₹10 lakh), PMEGP (margin money subsidy of 25% for general category), and CGTMSE (collateral-free coverage up to ₹2 crore). The EMI at 11% over 7 years is ₹3,082/month. This report covers project cost, machinery list, working capital, profitability, and subsidy eligibility, making it easier for entrepreneurs or CAs to secure funding.
Any individual, partnership, or private limited company can apply. For PMEGP, the applicant must be 18+ with at least 8th standard education (relaxable for rural areas). For PMFME, the unit must be a micro food processing enterprise. No prior default history. The business should be located in a non-prohibited area. CGTMSE requires the loan to be for a new or existing MSME. The promoter must contribute 10% of project cost (₹20,000) as margin money. The unit must comply with FSSAI registration and local municipal norms.
Total project cost: ₹2,00,000. Promoter contribution: ₹20,000 (10%). Term loan: ₹1,80,000 (90%). Loan tenure: 7 years. Interest rate: 11% p.a. (reducing balance). EMI: ₹3,082/month. Subsidy under PMFME: 35% of eligible project cost (max ₹10 lakh) – here, ₹70,000, but disbursed in two installments after project implementation. PMEGP subsidy: 25% for general (₹50,000) or 35% for special categories (₹70,000). Subsidy is adjusted against the loan, reducing net liability. The project cost includes: potato chipper machine (₹35,000), frying equipment (₹50,000), packaging machine (₹25,000), utensils and furniture (₹20,000), working capital (₹50,000), and other expenses (₹20,000).
1. Duly filled loan application form. 2. PAN card and Aadhaar of applicant. 3. Project report with CMA data, DSCR, and 5-year projections. 4. Quotations for machinery and equipment. 5. Proof of business address (rent agreement or ownership). 6. FSSAI license or application receipt. 7. GST registration (optional for turnover below ₹40 lakh). 8. Bank statements of last 6 months. 9. Caste certificate (if applying under PMEGP special category). 10. Education certificate. 11. Two passport-size photographs. For PMFME, additional forms: PMFME application and DPR. For CGTMSE, no collateral documents needed.
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 ₹2 Lakh potato chips unit: 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, clean export ₹499.
Indicatively ≈ ₹3,082/month on the ~₹1.8 Lakh term-loan portion (at 11% over 7 years), with ~₹20,000 promoter margin. The report computes exact figures.
Banks typically expect ~10% margin — about ₹20,000 for a ₹2 Lakh project — plus any scheme subsidy.
PMFME, PMEGP, CGTMSE fit this range. The report is configured to your chosen scheme.
The EMI is ₹3,082 per month. This is calculated using the reducing balance method. Total interest payable over 7 years is approximately ₹78,888, making the total repayment ₹2,58,888. The EMI remains constant, but the interest component decreases over time.
Yes, PMFME (Pradhan Mantri Formalisation of Micro Food Processing Enterprises) provides a capital subsidy of 35% of the eligible project cost, with a maximum of ₹10 lakh. For a ₹2 lakh project, the subsidy is ₹70,000. It is released in two installments: 50% after project completion and 50% after one year of operation. The subsidy is credited to your loan account, reducing your outstanding.
PMEGP (Prime Minister's Employment Generation Programme) provides margin money subsidy (25% for general, 35% for special categories) on the project cost, which is adjusted against the loan. PMFME provides a capital subsidy of 35% on eligible project cost (max ₹10 lakh) for micro food processing units. Both can be availed, but you must choose one. PMEGP is easier for new entrepreneurs, while PMFME is specific to food processing and has a higher subsidy cap.
No, under CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises), loans up to ₹2 crore are collateral-free. The bank does not require any third-party guarantee or tangible security. However, the bank may charge a one-time guarantee fee (usually 0.75% of the loan amount) which is often passed to the borrower. This scheme covers default up to 85% of the loan amount.