This page provides a detailed project report for a Kirana Store seeking a ₹50 Lakh bank loan. The business, classified under NIC 47110 (Retail sale in non-specialized stores), requires a promoter margin of ₹5 Lakh and a term loan of ₹45 Lakh. The estimated EMI at 11% interest over 7 years is ₹77,051 per month. Eligible schemes include MUDRA Shishu (up to ₹50,000), MUDRA Kishor (₹50,001–₹5 Lakh), and CGTMSE (credit guarantee up to ₹2 Crore). A bank-ready project report is essential to secure funding; it includes CMA data (Comparative Financial Analysis), DSCR (Debt Service Coverage Ratio), and 5-year financial projections. This report helps entrepreneurs and CAs present a viable business case to lenders, covering profitability, cash flow, and collateral requirements.
To avail a ₹50 Lakh loan for a Kirana Store, the applicant must be an Indian citizen aged 18–65, with a viable business plan. The business should be operational for at least 1 year (or have relevant retail experience). CGTMSE coverage requires no collateral for loans up to ₹2 Crore, but the promoter must contribute 10% margin (₹5 Lakh). MUDRA loans under Shishu and Kishor categories are available for micro enterprises, but for ₹50 Lakh, a term loan under CGTMSE is more suitable. The applicant must have a good credit score (preferably 700+) and GST registration if turnover exceeds ₹40 Lakh. A project report with CMA data and DSCR >1.5 is mandatory.
The total project cost for a ₹50 Lakh Kirana Store is estimated at ₹50 Lakh, comprising: fixed assets (shop interior, racks, refrigeration, billing system) ₹30 Lakh, working capital (initial inventory, salaries, utilities) ₹18 Lakh, and contingency ₹2 Lakh. Financing: Promoter's contribution 10% (₹5 Lakh), Term Loan 90% (₹45 Lakh). The loan tenure is 7 years at an interest rate of 11% per annum, resulting in an EMI of ₹77,051. The DSCR (Debt Service Coverage Ratio) should be above 1.5, indicating sufficient net profit to cover debt obligations. Subsidy: Under PMFME (PM Formalisation of Micro Food Processing Enterprises), kirana stores may get 35% subsidy on eligible project cost (max ₹10 Lakh), but this is for food processing units; check eligibility. MUDRA does not offer subsidy but provides low-interest loans.
For a ₹50 Lakh Kirana Store loan, submit: KYC documents (Aadhaar, PAN, Voter ID), business proof (GST registration, shop license, trade license), financials (last 2 years IT returns, audited balance sheets if applicable), bank statements (last 6 months), project report (including CMA, DSCR, 5-year projections), quotation for assets, and collateral documents (if applicable). For CGTMSE, no collateral is needed. Ensure the project report includes a detailed break-up of cost, projected income statement, cash flow, and balance sheet. A CA's certification adds credibility.
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Financing structured for a ₹50 Lakh kirana store: margin, term loan & EMI.
Scheme-ready for MUDRA Shishu, MUDRA Kishor, CGTMSE.
Exact means of finance, CMA, DSCR ≥ 1.50 in the generated report.
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Indicatively ≈ ₹77,051/month on the ~₹45 Lakh term-loan portion (at 11% over 7 years), with ~₹5 Lakh promoter margin. The report computes exact figures.
Banks typically expect ~10% margin — about ₹5 Lakh for a ₹50 Lakh project — plus any scheme subsidy.
MUDRA Shishu, MUDRA Kishor, CGTMSE fit this range. The report is configured to your chosen scheme.
The EMI for a ₹45 Lakh loan at 11% per annum over 7 years (84 months) is approximately ₹77,051. This is calculated using the standard reducing balance method. You can use an EMI calculator to verify.
Direct subsidy for kirana stores is limited. PMFME offers 35% subsidy (up to ₹10 Lakh) for micro food processing units, but only if you process food items (e.g., spices, pickles). MUDRA loans are interest-subsidized for certain categories, but not for ₹50 Lakh. CGTMSE provides credit guarantee, not subsidy. Check state-specific schemes like Odisha's MSME subsidy.
Under CGTMSE, loans up to ₹2 Crore are collateral-free for MSMEs. However, the bank may still require a personal guarantee. For loans above ₹10 Lakh, CGTMSE coverage is available at a nominal fee. Ensure your project report shows strong DSCR to avoid additional security demands.
Banks typically require a DSCR of at least 1.5 for term loans. For a ₹45 Lakh loan with EMI ₹77,051, your annual debt service is ₹9,24,612. Your net profit after tax plus depreciation and interest should be at least ₹13,86,918 annually to meet the 1.5 DSCR. The project report must demonstrate this.