Are you planning to open a Dhaba with a ₹5 lakh investment? This page provides a ready-to-use project report for a Dhaba business under NIC 56104, specifically tailored for bank loan applications. The project cost is ₹5 lakh, with a promoter margin of ₹50,000 (10%) and a term loan of ₹4.5 lakh. At an interest rate of 11% per annum over 7 years, the monthly EMI works out to approximately ₹7,705. This report is eligible for MUDRA Kishor (₹50,001–₹5 lakh) or MUDRA Tarun (₹5 lakh–₹10 lakh) loans under the Pradhan Mantri MUDRA Yojana (PMMY), and can also be used for PMEGP subsidy applications. A bank-ready project report includes key financial data such as CMA (Credit Monitoring Arrangement) data, Debt Service Coverage Ratio (DSCR), and 5-year projected profit & loss, balance sheet, and cash flow statements. This helps banks assess the viability of your Dhaba and speeds up loan approval.
The total project cost for a standard Dhaba is ₹5,00,000. The promoter must contribute a minimum of ₹50,000 (10%) as margin money. The remaining ₹4,50,000 is financed as a term loan from a bank. Under MUDRA Kishor, loans up to ₹5 lakh are available without collateral, thanks to CGTMSE cover. For PMEGP, the subsidy is 25% of the project cost (₹1.25 lakh) for general category entrepreneurs, reducing the effective loan burden. The loan repayment period is 7 years, with a possible moratorium of 6-12 months. The EMI of ₹7,705 is calculated assuming a flat 11% interest rate; actual rates may vary between 9% and 14% depending on the bank and your credit profile.
Eligibility: Any Indian citizen above 18 years with a viable Dhaba business plan. For MUDRA, no prior experience is required. For PMEGP, the applicant must have passed at least 8th standard (relaxable for rural areas). Documents needed: Aadhaar, PAN, Voter ID or Driving License, address proof, passport-size photos, business address proof (rent agreement or ownership), project report (this one), quotations for equipment (kitchen equipment, furniture, signage, etc.), and bank statements for the last 6 months. If applying for PMEGP, also need a detailed project report (DPR) and caste certificate (if applicable). For CGTMSE coverage, no collateral documents are required for loans up to ₹5 lakh.
Your Dhaba project can benefit from two main schemes: 1) PMEGP (Prime Minister's Employment Generation Programme): Provides a capital subsidy of 25% (general) or 35% (special categories) of the project cost, capped at ₹25 lakh. For a ₹5 lakh project, the subsidy is ₹1.25 lakh (general) or ₹1.75 lakh (SC/ST/OBC/women). The subsidy is released after the loan is disbursed and the unit starts operations. 2) MUDRA Loan: No direct subsidy, but offers collateral-free loans under CGTMSE. MUDRA Kishor (up to ₹5 lakh) is ideal for your project. Additionally, you may check state-specific schemes like the Uttar Pradesh MSME Policy or Punjab Dhaba Promotion Scheme, which offer interest subvention or capital grants. Always apply through your bank's MSME branch.
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Financing structured for a ₹5 Lakh dhaba: margin, term loan & EMI.
Scheme-ready for MUDRA Kishor, MUDRA Tarun, PMEGP.
Exact means of finance, CMA, DSCR ≥ 1.50 in the generated report.
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Indicatively ≈ ₹7,705/month on the ~₹4.5 Lakh term-loan portion (at 11% over 7 years), with ~₹50,000 promoter margin. The report computes exact figures.
Banks typically expect ~10% margin — about ₹50,000 for a ₹5 Lakh project — plus any scheme subsidy.
MUDRA Kishor, MUDRA Tarun, PMEGP fit this range. The report is configured to your chosen scheme.
Yes, under the MUDRA scheme (Kishor category), loans up to ₹5 lakh are collateral-free due to CGTMSE cover. However, the bank may still require a personal guarantee from the borrower. For PMEGP, the loan is also collateral-free up to ₹10 lakh. Ensure your credit score is above 650 and your project report is bank-ready.
The monthly EMI is approximately ₹7,705. This is calculated using the formula: EMI = P x R x (1+R)^N / ((1+R)^N - 1), where P=4,50,000, R=0.917% (11%/12), N=84 months. Actual EMI may vary slightly based on the bank's interest rate and processing fees.
For a ₹5 lakh project, the PMEGP subsidy is 25% (₹1.25 lakh) for general category entrepreneurs and 35% (₹1.75 lakh) for SC/ST/OBC/women/ex-servicemen/physically handicapped. The subsidy is back-ended and released after the unit is operational. You must submit a detailed project report and get it approved by the KVIC or state nodal agency.
You need Aadhaar, PAN, address proof, business address proof (rent agreement or ownership), 2 passport-size photos, bank statement for last 6 months, quotations for equipment (stove, utensils, furniture, etc.), and a project report (this one). If applying for MUDRA, no GST registration is required initially, but it's advisable to register once turnover exceeds ₹40 lakh.