Indicative ₹25 Lakh financing for a agarbatti manufacturing + a full bank-ready report with CMA data, DSCR ≥ 1.50 and 5-year projections.
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This page provides a comprehensive, bank-ready project report for setting up an Agarbatti manufacturing unit with a total project cost of ₹25 Lakh. Targeting micro and small enterprises under NIC code 32909, the report covers promoter margin (₹2.5 Lakh), term loan requirement (₹22.5 Lakh), and estimated EMI of ₹38,525 per month at 11% interest over 7 years. It includes detailed CMA data, Debt Service Coverage Ratio (DSCR) projections, and 5-year financial projections essential for loan approval. Eligible schemes include PMEGP (subsidy up to 35% of project cost for general category), MUDRA Kishor (loans up to ₹10 Lakh under Shishu, Kishor, Tarun), and PM Vishwakarma (collateral-free loans up to ₹5 Lakh with 5% interest subvention). The report is tailored for entrepreneurs in any Indian state, with specific state-wise subsidy variations noted. A well-prepared project report increases bank sanction chances by 60% and ensures compliance with CGTMSE collateral-free guarantee requirements.
Any Indian citizen above 18 years with a viable agarbatti manufacturing plan can apply. For PMEGP: general category gets 25% subsidy (₹6.25 Lakh on ₹25 Lakh project), special categories get 35% (₹8.75 Lakh). MUDRA Kishor covers loans up to ₹10 Lakh; for ₹25 Lakh, you may need a combination of MUDRA Tarun and term loan. PM Vishwakarma provides collateral-free loan up to ₹5 Lakh with 5% interest subvention and skill training. CGTMSE guarantee covers up to ₹2 Crore without collateral. State nodal agencies like KVIC (for PMEGP) and banks (for MUDRA) handle applications. Business must be owned and managed by the applicant. No prior default in any loan.
Total project cost: ₹25 Lakh. Promoter contribution (margin): ₹2.5 Lakh (10%). Term loan from bank: ₹22.5 Lakh. Subsidy under PMEGP (if applicable) can reduce loan amount: e.g., if eligible for 35% subsidy (₹8.75 Lakh), the loan component becomes ₹13.75 Lakh. Repayment tenure: 7 years including moratorium of 6 months. Interest rate: 11% p.a. (varies by bank; SBI MUDRA rate ~9.15% for women). EMI for ₹22.5 Lakh at 11% for 84 months: ₹38,525 per month. DSCR should be above 1.25; typical agarbatti unit with 60% capacity utilization achieves DSCR of 1.8-2.2. Machinery cost (approx ₹8 Lakh): agarbatti rolling machine, mixing machine, drying racks, packaging. Working capital (₹10 Lakh): raw materials (bamboo sticks, charcoal powder, fragrance oils, gum), labor, electricity.
1. KYC: Aadhaar, PAN, voter ID, passport-size photos. 2. Business proof: GST registration (if turnover > ₹40 Lakh), Udyam registration (MSME certificate), trade license. 3. Project report: Detailed with CMA, DSCR, 5-year projections, machinery list, supplier quotes. 4. Bank statements: Last 6 months of savings/current account. 5. Income tax returns: Last 2-3 years (if applicable). 6. Collateral documents: For loans above ₹10 Lakh, property documents (land/building) or CGTMSE cover (no collateral up to ₹2 Cr). 7. Quotations: For machinery and raw materials. 8. Subsidy application: For PMEGP, attach project report, caste certificate (if applicable), and educational certificates. Ensure all documents are self-attested and notarized where needed.
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Financing structured for a ₹25 Lakh agarbatti manufacturing: margin, term loan & EMI.
Scheme-ready for PMEGP, MUDRA Kishor, PM Vishwakarma.
Exact means of finance, CMA, DSCR ≥ 1.50 in the generated report.
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Indicatively ≈ ₹38,525/month on the ~₹22.5 Lakh term-loan portion (at 11% over 7 years), with ~₹2.5 Lakh promoter margin. The report computes exact figures.
Banks typically expect ~10% margin — about ₹2.5 Lakh for a ₹25 Lakh project — plus any scheme subsidy.
PMEGP, MUDRA Kishor, PM Vishwakarma fit this range. The report is configured to your chosen scheme.
At 11% interest per annum for 7 years (84 months), the EMI is approximately ₹38,525 per month. If you avail PMEGP subsidy of ₹8.75 Lakh, the loan reduces to ₹13.75 Lakh, making EMI around ₹23,500 per month. Use an online EMI calculator with your exact interest rate and tenure.
Yes, PM Vishwakarma covers traditional artisans including agarbatti makers. It offers collateral-free loans up to ₹5 Lakh (first tranche) with 5% interest subvention (effective rate ~0% for timely repayment). However, the total project cost of ₹25 Lakh may exceed this limit; you can combine PM Vishwakarma for ₹5 Lakh with MUDRA or term loan for the balance.
Banks typically require a Debt Service Coverage Ratio (DSCR) of at least 1.25. For a well-planned agarbatti unit with 60% capacity utilization, projected DSCR is 1.8-2.2, indicating strong repayment capacity. Your project report should include DSCR calculations for all 5 years.
With a complete project report and documents, bank approval takes 2-4 weeks. PMEGP applications through KVIC may take 4-6 weeks due to subsidy processing. MUDRA loans under ₹10 Lakh can be approved in 7-10 days. Ensure your CIBIL score is above 700 and you have no overdue loans.