Patna · Bihar — MUDRA Kishor & Bank Loan

Footwear Shop Project Report in Patna

Bank-ready footwear shop project report for Patna, Bihar — with CMA data, DSCR ≥ 1.50 and 5-year projections for MUDRA Kishor, MUDRA Tarun, CGTMSE.

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About This Scheme

Opening a footwear shop in Patna, Bihar, under NIC 47722 is a promising retail venture, especially with the support of government schemes like MUDRA (Kishor/Tarun) and CGTMSE. A bank-ready project report is critical for loan approval—it demonstrates viability, repayment capacity, and compliance. This report includes CMA data (current ratio, debt-equity ratio), Debt Service Coverage Ratio (DSCR) above 1.25, and 5-year financial projections (profit & loss, balance sheet, cash flow). For a project cost between ₹3–20 lakh, MUDRA loans up to ₹10 lakh (Kishor: ₹5 lakh, Tarun: ₹10 lakh) are available without collateral under CGTMSE cover. The report must detail location (e.g., Patna's market areas like Boring Road or Fraser Road), inventory sourcing, working capital needs, and break-even analysis. Proper documentation—Aadhaar, PAN, GST registration, shop rental agreement, and caste certificate (if applicable)—is essential. This page provides a practical guide for entrepreneurs and CAs to prepare a robust project report tailored to Patna's footwear retail landscape.

Patna
City
₹3–20 Lakh
Typical Project Cost
MUDRA Kishor
Best-fit Scheme
47722
NIC Activity Code
≥ 1.50
DSCR (bank norm)
60 seconds
Turnaround
PDF · Word · Excel
Formats
Bihar
Service Area

Eligibility for MUDRA & CGTMSE Loans

To avail a MUDRA loan (Kishor up to ₹5 lakh, Tarun up to ₹10 lakh) for a footwear shop in Patna, the applicant must be an Indian citizen aged 18+ with a viable business plan. There is no minimum educational qualification, but basic literacy is preferred. The business should be non-farm and non-corporate (sole proprietorship, partnership, or private limited company). CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) provides collateral-free coverage up to ₹2 crore for loans up to ₹10 lakh under MUDRA. For loans above ₹10 lakh (up to ₹20 lakh), collateral may be required unless covered under special schemes. Priority is given to women, SC/ST, OBC, and minority entrepreneurs. The project report must show a DSCR of at least 1.25 and a current ratio above 1.2. The business location in Patna—preferably in a high-footfall area—should be clearly mentioned with rent agreement or ownership proof.

Project Cost & Financing Structure

A footwear shop project in Patna typically requires ₹3–20 lakh, depending on scale. The cost breakup includes: fixed assets (shop interior, racks, display units, billing software) ~₹1–5 lakh; initial inventory (men's, women's, children's footwear, brands like Bata, Relaxo, or local) ~₹2–10 lakh; working capital for 3 months (rent, salary, electricity) ~₹1–5 lakh. Under MUDRA, the loan amount can cover up to 100% of the project cost for Kishor/Tarun. Promoter's contribution is not mandatory but 5–10% is advisable for better terms. For loans above ₹10 lakh, banks may ask for 10–20% margin. The repayment period is 3–5 years with monthly installments. Interest rates range from 8–12% per annum (reducing balance) depending on the bank (SBI, PNB, Bank of Bihar, etc.). The project report must include a detailed CMA format with estimated sales (₹8–40 lakh annually based on size), gross margin (~25–35%), and net profit (~10–15%).

Step-by-Step Loan Application Process in Patna

1. Prepare a bank-ready project report with CMA, DSCR, and 5-year projections (use templates from MUDRA portal or hire a CA). 2. Choose a bank: SBI, PNB, Bank of India, or regional rural banks like Bihar Gramin Bank. 3. Submit application with documents: Aadhaar, PAN, GST registration (if turnover >₹40 lakh), shop rental agreement/ownership proof, caste certificate (if seeking subsidy), and 2 passport-size photos. 4. For MUDRA loans, apply online via MUDRA portal or directly at the bank branch. 5. Bank conducts credit assessment—CGTMSE guarantee covers up to 85% of default. 6. Loan sanction within 15–30 days; disbursement in one or two tranches. 7. For PMEGP (if eligible), subsidy up to 35% (general) or 50% (SC/ST/OBC/women) of project cost (max ₹10 lakh) is available through KVIC. However, PMEGP requires a training certificate and is more suited for manufacturing than retail. For pure retail, MUDRA is simpler. 8. After disbursement, ensure timely EMI payments and maintain proper books of accounts for future renewals.

What Your Report Includes

Every report is formatted to the exact standards required by Indian banks and government departments.

  • Executive Summary with scheme-specific highlights
  • Promoter profile & KYC details
  • Business description & market analysis
  • Machinery & equipment list with quotations
  • Raw material & manpower planning
  • 5-year financial projections (P&L, Balance Sheet, Cash Flow)
  • CMA Data in IBA-approved format
  • Working Capital Assessment — Tandon Method II (RBI norms)
  • Loan repayment schedule with DSCR ≥ 1.25
  • SWOT analysis
  • Declarations & undertakings as per scheme guidelines

Eligibility Checklist

  • Applicant residing in or operating the footwear shop within Patna / Bihar
  • Age 18+ with valid Aadhaar & PAN (KYC for Patna address proof)
  • Eligible for MUDRA Kishor, MUDRA Tarun, CGTMSE — MUDRA Kishor ₹50K–₹5L
  • Udyam (MSME) registration — free, recommended before applying in Patna
  • No prior loan default with banks in Bihar
  • Own or rented premises for the footwear shop with basic utility connections
Export formats
PDF (A4)
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Word (.docx)
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Excel (.xlsx)
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See the report before you pay

A complete 14-section project report — the same document your bank officer will read. Every table below is real: the repayment schedule, the DSCR, the CMA workings, the balance sheet. Generate yours free, then pay ₹499 for the clean copy.

Project cost
₹10,00,000
Term loan sought
₹8,00,000
Promoter's margin
₹2,00,000 (20%)
Average DSCR
5.87 (norm ≥ 1.25)
Break-even
62% of Year-1 sales
Employment
3 existing + 3 new

Project Report

Sharma Electronics & Repair Services

Consumer electronics repair, servicing & spare-parts retail

Vaishali Nagar, Jaipur, Rajasthan

SchemeMUDRA Tarun
Loan applied for₹8,00,000
Total project cost₹10,00,000
ConstitutionSole Proprietorship

Submitted to the Branch Manager · Punjab National Bank, Vaishali Nagar, Jaipur

01

Executive Summary

Name of the unit
Sharma Electronics & Repair Services
Constitution
Sole Proprietorship
Promoter
Suresh Sharma (34 years)
Address of unit
Shop No. 12, Ground Floor, Vaishali Nagar, Jaipur — 302021
Nature of activity
Consumer electronics repair, servicing & spare-parts retail
NIC code
9521 — Repair of consumer electronics
Scheme applied under
Pradhan Mantri MUDRA Yojana — Tarun
Total project cost
₹10,00,000
Term loan requested
₹8,00,000 (80%)
Promoter's contribution
₹2,00,000 (20%)
Repayment
60 monthly instalments @ 10.50% p.a.

The unit has been in operation since 2019 and currently services 20–25 jobs a day from a 350 sq.ft. ground-floor shop, with a recorded customer base of 600+ households in the Vaishali Nagar catchment. The promoter proposes to expand the workbench capacity, add board-level diagnostic equipment and carry a spare-parts inventory so that 70% of repairs can be completed same-day instead of the present 3-day turnaround.

The project is assessed at a cost of ₹10.00 lakh, financed by a ₹8.00 lakh MUDRA Tarun term loan and ₹2.00 lakh of promoter's own contribution (20%). At the projected turnover the unit services its debt 5.87 times over on average, against the 1.25 minimum, and breaks even at 62% of Year-1 sales — leaving substantial cushion against a demand shortfall.

Recommendation: the proposal is technically feasible, commercially viable and financially sound. It is recommended for sanction of a term loan of ₹8.00 lakh repayable in 60 monthly instalments.

05

Project Cost

Cost of the project
ParticularsBasisAmount (₹)
Renovation & civil work200 sq.ft. additional area, electrical, ESD flooring1,20,000
Diagnostic & repair equipmentAs per quotations — Annexure IX2,40,000
Computers, software & service tools2 systems, billing software, tool kits80,000
Furniture, air-conditioning & display fixturesCounter, racks, 1.5 T AC60,000
Margin money for working capitalStock, receivables & operating cash5,00,000
Total project cost10,00,000

A 5% contingency is built into the civil and equipment estimates. All capital items are supported by three quotations each.

06

Means of Finance

Means of finance
SourceAmount (₹)% of project cost
Promoter's own contribution2,00,00020.00%
Term loan under MUDRA Tarun8,00,00080.00%
Subsidy / margin money grantNil
Total10,00,000100.00%

Promoter's contribution is held in Savings A/c No. XXXXXX4417 with Punjab National Bank, Vaishali Nagar (statement enclosed). Debt–equity at inception is 4.00 : 1, improving to 1.65 : 1 by the end of Year 1.

For PMEGP, PMFME, NABARD and state-subsidy proposals this section additionally carries the margin-money subsidy workings, the subsidy-adjusted repayment and a second DSCR computed net of subsidy.

07

Machinery & Equipment

Plant, machinery and equipment proposed
EquipmentQtyRate (₹)Amount (₹)
BGA rework station with preheater195,00095,000
Digital storage oscilloscope with probes145,00045,000
Universal IC programmer135,00035,000
Ultrasonic PCB cleaning unit122,00022,000
Soldering / desoldering stations38,00024,000
Precision tool kits & ESD workbench29,50019,000
Total2,40,000

Suppliers: Fine Tools India (Jaipur), Sagar Electronics (Delhi), Techno Instruments (Jaipur). Quotations enclosed at Annexure IX. Delivery within 30 days of sanction; installation by the supplier at no extra cost.

09

Profitability Projections (5 Years)

Projected profit & loss account (₹ in lakh)
ParticularsYear 1Year 2Year 3Year 4Year 5
Service & repair income24.0028.3232.5736.8041.22
Sale of spares & accessories9.6011.3313.0314.7316.49
Total revenue33.6039.6545.6051.5357.71
Cost of spares & materials (45%)15.1217.8420.5223.1925.97
Gross profit18.4821.8125.0828.3431.74
Salaries & wages6.727.267.848.479.14
Rent1.441.511.591.671.75
Power & fuel0.720.780.830.890.95
Repairs & maintenance0.300.330.360.390.42
Marketing & business promotion0.360.400.440.480.52
Administrative & miscellaneous0.600.660.720.780.84
Insurance0.120.130.140.150.16
Total operating expenses10.2611.0711.9212.8313.78
EBITDA8.2210.7413.1615.5117.96
Depreciation (WDV, as per IT Act)0.860.660.520.420.35
EBIT7.3610.0812.6415.0917.61
Interest on term loan0.780.640.480.310.11
Profit before tax6.589.4412.1614.7817.50
Income tax (as applicable)0.300.620.951.351.80
Profit after tax6.288.8211.2113.4315.70

Revenue grows 18%, 15%, 13% and 12% over the five years, against 22% achieved by the unit in the last audited year. Capacity utilisation moves from 72% to 91%; the projections do not assume any increase in service rates.

10

Repayment Schedule & DSCR

Loan amount
₹8,00,000
Rate of interest
10.50% p.a. (reducing balance)
Tenure
60 months
Moratorium
Nil
Equated monthly instalment
₹17,195
Total interest over the tenure
₹2,31,707
Year-wise repayment schedule (₹)
YearOpening balancePrincipal repaidInterestTotal outgoClosing balance
18,00,0001,28,40477,9372,06,3416,71,596
26,71,5961,42,55563,7872,06,3415,29,041
35,29,0411,58,26548,0772,06,3413,70,776
43,70,7761,75,70630,6352,06,3411,95,070
51,95,0701,95,07011,2722,06,341Nil
Total8,00,0002,31,70710,31,705
Debt service coverage ratio (₹ in lakh)
ParticularsYear 1Year 2Year 3Year 4Year 5
Profit after tax6.288.8211.2113.4315.70
Add: depreciation0.860.660.520.420.35
Add: interest on term loan0.780.640.480.310.11
Cash available for debt service (A)7.9210.1212.2114.1616.16
Principal repayment1.281.431.581.761.95
Interest0.780.640.480.310.11
Total debt service (B)2.062.072.062.072.06
DSCR (A ÷ B)3.844.895.936.847.84

Average DSCR over the tenure: 5.87. The minimum acceptable to banks is 1.25; the unit crosses that threshold even if Year-1 revenue falls 60% short of projection.

11

Balance Sheet & Cash Flow Projections

Projected balance sheet (₹ in lakh)
ParticularsYear 1Year 2Year 3Year 4Year 5
LIABILITIES
Capital account (net of drawings)4.087.5012.1117.7424.44
Term loan — long-term portion5.293.711.95
Term loan — current maturity1.431.581.761.95
Sundry creditors (30 days)1.261.491.711.932.16
Other current liabilities & provisions0.300.350.400.450.50
Total12.3614.6317.9322.0727.10
ASSETS
Net fixed assets4.143.482.962.542.19
Stock of spares (45 days)1.862.202.532.863.20
Sundry debtors (10 days)0.921.091.251.411.58
Cash & bank balance5.447.8611.1915.2620.13
Total12.3614.6317.9322.0727.10
Cash flow statement — Year 1 (₹ in lakh)
SourcesAmountApplicationsAmount
Profit after tax6.28Capital expenditure5.00
Depreciation0.86Increase in stock1.86
Increase in creditors & provisions1.56Increase in debtors0.92
Term loan drawn8.00Repayment of term loan1.28
Promoter's capital introduced2.00Drawings4.20
Closing cash & bank5.44
Total18.70Total18.70
12

CMA Data & Working Capital Assessment

Working capital is assessed under the Tandon Committee Method II, the basis used by banks for limits up to ₹5 crore. The workings below are drawn from the Year-1 projections above.

Maximum permissible bank finance (₹ in lakh)
ParticularsAmount
Stock of spares1.86
Sundry debtors0.92
Cash & bank balance5.44
Total current assets (TCA)8.22
Sundry creditors1.26
Other current liabilities & provisions0.30
Current maturity of term loan1.43
Other current liabilities (OCL)2.99
Working capital gap (TCA − OCL)5.23
25% of TCA — stipulated margin2.06
Maximum permissible bank finance (Method II)3.18

No cash-credit limit is sought in this proposal; the assessment is presented because bank officers ask for it. Were the limit of ₹3.18 lakh availed, the current ratio would stand at 1.33 — above the 1.25 stipulated by IBA.

CMA statements included in the full report

  • Form I — particulars of existing and proposed limits
  • Form II — operating statement (actuals and projections)
  • Form III — analysis of the balance sheet
  • Form IV — comparative statement of current assets and current liabilities
  • Form V — computation of maximum permissible bank finance
  • Form VI — fund flow statement
  • Ratio analysis and holding-period statement
13

Key Ratios, Break-Even & SWOT

Key financial indicators
RatioYear 1Year 2Year 3Year 4Year 5Bank norm
Current ratio2.753.263.874.519.36≥ 1.25
Debt–equity ratio1.650.710.310.11Nil≤ 3.00
DSCR3.844.895.936.847.84≥ 1.25
Net profit margin18.7%22.2%24.6%26.1%27.2%
Interest coverage9.415.826.348.7160.1≥ 2.00
Break-even analysis — Year 1 (₹ in lakh)
ParticularsAmount
Fixed costs (salaries, rent, admin, depreciation, interest)10.88
Variable costs (materials, power, maintenance)16.14
Contribution (revenue − variable costs)17.46
P/V ratio51.96%
Break-even sales20.94
Break-even as % of Year-1 revenue62.3%
Cash break-even as % of Year-1 revenue57.4%

Strengths

  • Nine years of promoter experience in the same line of activity; the unit is already running and profitable.
  • Only board-level repair capability in a 3 km catchment of 12,000 households.
  • 85% repeat customers — revenue is recurring rather than one-off.
  • Low fixed-cost base; the shop is rented at ₹12,000 a month with no owned-premises burden.

Weaknesses

  • Technical dependence on the proprietor for complex board-level work.
  • Informal book-keeping to date; a computerised billing and stock system is part of this project.
  • Brand recognition limited to the immediate locality.

Opportunities

  • Right to Repair framework improving access to genuine spares for independent repairers.
  • About 3,000 new households entering the catchment within 1 km.
  • Institutional tie-ups — schools, clinics and offices for annual maintenance contracts.

Threats

  • An authorised brand service centre opening within the catchment.
  • Import-duty-led increases in spare-parts prices.
  • Attrition of trained technicians to larger service chains.
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Localised for Patna: addresses, NIC code 47722 and Bihar cost assumptions are pre-filled.

Scheme-ready for MUDRA Kishor, MUDRA Tarun, CGTMSE — eligibility, subsidy and margin money handled automatically.

Bankable financials: P&L, Balance Sheet, Cash Flow, CMA data and DSCR ≥ 1.50, the way Patna branches expect.

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Frequently Asked Questions

Is this footwear shop project report accepted by banks in Patna?

Yes. The report follows RBI/IBA formatting with CMA data, DSCR and 5-year projections, and is accepted by SBI, PNB, Bank of Baroda, Canara Bank and other nationalised and private banks across Patna and Bihar, as well as the local DIC office for subsidy schemes.

How much loan can I get for a footwear shop in Patna?

Most footwear shop projects in Patna fall in the ₹3–20 Lakh range. Under MUDRA Kishor (₹50K–₹5L) and other schemes like MUDRA Kishor, MUDRA Tarun, CGTMSE, banks typically fund 75–90% of the project cost as term loan plus working capital, with the balance as promoter contribution.

Which government scheme is best for a footwear shop in Bihar?

For a footwear shop, the most commonly used schemes are MUDRA Kishor, MUDRA Tarun, CGTMSE. The report is configured to match whichever scheme you choose at generation time.

What documents do I need with the footwear shop report in Patna?

Aadhaar, PAN, address proof for Patna, passport photos, quotations for machinery/equipment, Udyam (MSME) registration and bank statements. The project report itself is generated by Cred — you only attach your KYC and quotations.

How fast can I get the footwear shop project report?

Under 60 seconds. Fill the form, pick your scheme and loan amount, and the full report is drafted with Patna-specific assumptions. The first report is free; clean Word/Excel/PDF exports are ₹499.

Can a CA or loan agent in Patna edit the figures?

Yes. Every report is fully editable and exports to Word (.docx) and Excel (.xlsx), so your CA or consultant in Patna can adjust projections, machinery costs or working capital before submitting to the bank.

Can I get a loan for a footwear shop in Patna without collateral?

Yes, under MUDRA Kishor (up to ₹5 lakh) and Tarun (up to ₹10 lakh), loans are collateral-free as they are covered by CGTMSE. For loans above ₹10 lakh, collateral may be required unless you qualify under special schemes like Stand-Up India (for SC/ST/women) or PM Vishwakarma (for artisans). Ensure your project report is strong to improve approval chances.

What is the typical interest rate for MUDRA loans in Patna?

Interest rates vary by bank but generally range from 8% to 12% per annum on a reducing balance basis. Public sector banks like SBI and PNB offer around 9–10% for MUDRA loans. Rates may be lower for women or SC/ST borrowers. Check with local branches for current rates.

Do I need GST registration for a footwear shop loan?

GST registration is mandatory if your annual turnover exceeds ₹40 lakh (₹20 lakh for special category states). For a small footwear shop with turnover below this threshold, registration is optional but recommended for claiming input tax credit on purchases. Banks may ask for GST certificate if turnover is expected to cross the limit.

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