This page provides a bank-ready project report for a ₹2 Lakh tea stall, ideal for entrepreneurs in small towns or cities across India. The business, classified under NIC 56303 (stalls selling tea and snacks), requires a promoter margin of ₹20,000 (10%) and a term loan of ₹1.8 Lakh. At an interest rate of 11% per annum over 7 years, the monthly EMI is approximately ₹3,082. This report is designed to help you secure a loan under MUDRA Shishu (loans up to ₹50,000) or MUDRA Kishor (₹50,000–₹5 Lakh), or the PM Formalisation of Micro Food Processing Enterprises (PMFME) scheme, which offers a 35% capital subsidy (up to ₹10 Lakh). The report includes detailed CMA (Credit Monitoring Arrangement) data, Debt Service Coverage Ratio (DSCR) calculations, and 5-year financial projections—key documents that banks and financial institutions require for loan approval. By using this ready-made project report, you can save time and increase your chances of approval, as it follows standard bank formats and includes realistic assumptions based on Indian tea stall operations.
To apply for a ₹2 Lakh tea stall loan, you must be an Indian citizen aged 18–65 years with a viable business plan. For MUDRA loans, no collateral is required under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) cover. Under PMFME, you need to be an existing or aspiring micro food processing entrepreneur, with preference for women, SC/ST, and OBC candidates. The tea stall should be located in a commercial area with footfall (e.g., near bus stands, railway stations, or markets). You must have a basic understanding of tea preparation and hygiene practices. Banks typically require a minimum of 8th standard education, though experience in the food business is valued. For MUDRA Shishu (up to ₹50,000), no project report is needed; but for the ₹2 Lakh loan (MUDRA Kishor), a simple project report with projections is mandatory. Additionally, you should not have defaulted on any previous loan.
The total project cost for a standard tea stall is ₹2,00,000. The promoter's contribution (margin money) is ₹20,000 (10% of the project cost), which can be from personal savings or informal sources. The remaining ₹1,80,000 is financed as a term loan. The loan tenure is typically 5–7 years; we assume 7 years for lower EMI. At 11% per annum (current MUDRA benchmark rate), the monthly EMI is ₹3,082. The project cost breakup includes: equipment (stove, kettle, refrigerator, water filter, cups, etc.) ₹80,000; furniture (table, chairs, counter) ₹25,000; initial inventory (tea, milk, sugar, snacks) ₹30,000; renovation/decoration (signage, paint) ₹20,000; working capital (1 month expenses) ₹15,000; and contingency ₹30,000. Under PMFME, a 35% capital subsidy (up to ₹10 Lakh) is available, which would reduce your loan burden. For a ₹2 Lakh project, the subsidy is ₹70,000, so the loan amount could be reduced to ₹1,10,000, lowering EMI to about ₹1,887.
For a tea stall loan application, you need to provide the following documents: (1) Identity proof: Aadhaar card, Voter ID, or Passport. (2) Address proof: Aadhaar, utility bill, or rent agreement. (3) Age proof: Birth certificate or any government ID. (4) Business proof: Shop and Establishment Act license, FSSAI registration (mandatory for tea stalls), and GST registration if turnover exceeds ₹40 Lakh (optional now). (5) Bank statement of the last 6 months (personal or business). (6) Quotations for equipment and furniture from local vendors. (7) Two passport-size photographs. (8) Project report (this document). For PMFME, you also need a project report in the prescribed format, and for subsidy, a DPR (Detailed Project Report) with cost estimates. If applying for MUDRA, no collateral documents are needed. Ensure all documents are self-attested.
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Financing structured for a ₹2 Lakh tea stall: margin, term loan & EMI.
Scheme-ready for MUDRA Shishu, MUDRA Kishor, PMFME.
Exact means of finance, CMA, DSCR ≥ 1.50 in the generated report.
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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.
MUDRA Shishu, MUDRA Kishor, PMFME fit this range. The report is configured to your chosen scheme.
Yes, under MUDRA loans, loans up to ₹10 Lakh are covered by CGTMSE, so no collateral is required. For a ₹2 Lakh loan, you only need to provide a personal guarantee. Similarly, PMFME loans up to ₹10 Lakh are also collateral-free under the scheme.
The monthly EMI is approximately ₹3,082. This is calculated using the formula: EMI = [P x R x (1+R)^N] / [(1+R)^N-1], where P=1,80,000, R=11%/12=0.009167, N=84 months. The total interest payable over 7 years is about ₹79,000.
Under PMFME, you can get a 35% capital subsidy on the eligible project cost, up to a maximum of ₹10 Lakh. For a ₹2 Lakh project, the subsidy is ₹70,000. This is disbursed in two installments: 50% after loan sanction and 50% after project completion and inspection.
The Debt Service Coverage Ratio (DSCR) for a typical tea stall is around 1.5 to 2.0, assuming monthly net profit of ₹15,000–₹20,000. With an EMI of ₹3,082, the annual debt service is ₹36,984. If net profit is ₹1,80,000 per year, DSCR = 1,80,000 / 36,984 = 4.87, which is very healthy. Banks prefer DSCR above 1.25.