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Project Report For Mudra Loan

Project Report for Mudra Loan

Mudra Bank loan offers loans at affordable rates to new companies. Registered company owners and entrepreneurs for setting up small & medium businesses can benefit. To get a Mudra loan the first and foremost requirement is to submit a Project Report to the Bank. 

The Project Report should include all business-related financial, economic, managerial, and technical aspects of the project or business. The report should be easy to understand and in a neat format. Applicants can create the project report on their own or with the help of an outsider like CA’s, tax consultants, or a private company who has particular knowledge.

What are the contents of a project report for Mudra Loan?

The project report consists of all business-related details. It should cover both the technical and financial aspects of the particular business. Below are the components of the project report.

  1. Introduction – Description of the business.
  2. Aim/Vision – Focus or target for which the enterprise shall work.
  3. Objective: Just as the aim, the objective of the enterprise should also be mentioned.
  4. Area of Expertise – Key areas or skills on which employees have expertise shall work.
  5. Details about the Promoters and Executive: Profile descriptions like education qualification, experience, etc.
  6. Source of Funds: Explain in detail how you are planning to raise funds for the business, owned, borrowed, etc.
  7. Financial Budget – Complete financial information on expenditure inquired like machinery cost, total cost, furniture cost, and working capital required.
  8. Financial Statements: These should the financial statements like profit & loss statements, cash flow statements, and balance sheets.
  9. Estimation: The report should include a projected estimation of sales, purchases, expenses, incomes, etc.
  10. Business Equipment Details – Exhaustive list of equipment, parts, plants and machinery to be used in the project
  11. Commercial Aspects – Plans to be executed related to commercializing the project
  12. Company Profile – Details on the company’s background, launch, initiation, milestones, and achievements
  13. Export Orders – Information on export orders, whether domestic or international, if any
  14. Information about Employees – Total number of employees working on the project with their details
  15. Information of Products and Services: Details of all the products and services to be used in the project
  16. Logistics Details: Information on transportation costs to be incurred whether private or commercial
  17. Manufacturing Processes: Details of types of manufacturing processes to be used in the project
  18. Market Potential: Information about the target market, target customer, market demand of the product, etc.
  19. Advertising Strategies: Advertising strategies to be applied or executed for the project
  20. Ratio Analysis: Computation and analysis of different ratios and their implications.
  21. Space or Land Requirement: Information on space or land requirements, if required
  22. Third-Party Details: Details of the third party engaged with the project if any like raw material suppliers, traders, manufacturers, etc.
  23. Break-Even Analysis: Specify the break-even point of the project; and its viability in terms of cost and profit.
  24. Conclusion: All project reports should have a conclusion at their end
About Finline!

Finline is an online platform for creating financial reports for getting bank loans and investments. It’s like ‘Canva’ but for financials. If you are an entrepreneur looking for a bank loan, you need to have a well-crafted project report. We, at Finline will help you with that. Our team will help you create a powerful business plan in ten minutes. That too in your language. All public and private sector banks working in India accept our project report. Click to create your report.

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MUDRA loan Scheme

Micro Units Development & Refinance Agency (MUDRA) Limited is an institution set up by the Government of India for development and refinancing activities relating to micro units. The Hon’ble Finance Minister announced MUDRA in the 2016 Budget. Under MUDRA, loans are provided under three schemes namely ‘Shishu’, ‘Kishor’ and ‘Tarun’ to signify the stage of growth and funding needs of the beneficiary micro unit. Micro Units and Entrepreneurs in India can avail this loan. The prime aim of the loan is to help the Micro & small enterprises in India, which are the backbone of the Indian industry. The actual name of the project is Pradhan Mantri MUDRA Yojana (PMMY). The Mudra loan extends its support for a variety of purposes, which contribute to income generation and employment creation in Manufacturing, Services, Retail, and Agri sectors. Allied Activities

What is the purpose of MUDRA?

One of the biggest bottlenecks for SMEs in India is the lack of financial support from the formal banking or financial sector. Many times the lack of formal financing hampers the growth of small businesses and makes them ineffective at competing with larger players. To remove this bottleneck and provide finance to micro units or Entrepreneurs, MUDRA Bank has been set up as a subsidiary of SIDBI. MUDRA will take responsibility for refinancing all financiers or financial institutions that participate in financing Small Businesses, Societies, Trusts, Section 8 Companies, Co-operative Societies, Small Banks, Scheduled Commercial Banks, and Rural Banks involved in lending to micro or small businesses engaged in manufacturing, trading, and services activities.

L0an Schemes

The loan is currently provided under three schemes in the Pradhan Mantri MUDRA Yojana. The three schemes are as follows:

  • Shishu: Loan of up to Rs.50,000/
  • Kishor: Loans of above Rs.50,000 to Rs.5 lakhs.
  • Tarun: Loans of above Rs.5 lakhs to Rs.10 lakhs
What are the Eligibility criteria for MUDRA?

Any Indian Citizen who has a business plan for a non-farm sector income-generating activity such as manufacturing, processing, trading, or service sector and whose credit need is less than 10 lakh can approach either a Bank, MFI, or NBFC for availing of MUDRA loans under Pradhan Mantri Mudra Yojana (PMMY). The terms and conditions of the lender would have to be followed for availing of loans under MUDRA. The lending rates adhere to the RBI guidelines issued in this regard from time to time. As MUDRA is a refinancing institution, it does not offer loans directly. Instead, existing NBFCs, Financial Institutions, Banks, Primary Lending Institutions, etc., provide loans through MUDRA.

The target audience for MUDRA loans are millions of Proprietorship / Partnership Firms running small manufacturing unit or service sector units like shopkeepers, fruits/vegetable vendors, truck operators, food-service units, repair shops, machine operators, small industries, artisans, food processors, and others, in rural and urban areas.

What are the Documents Needed for MUDRA loans?
  • MUDRA Loan Application
  • Project Report
  • Proof of Identity: like PAN / Drivers License / Aadhaar Card / Passport and more.
  • Residence proof like recent telephone bill/electricity bill or property tax receipt and more.
  • Applicant’s recent photograph which is less than 6 months old
  • To purchase machinery or other items, provide a quotation.
  • Name of supplier or details of machinery or prices of machinery
  • Proof of identity/address of the business like tax registration, business license, and more.
  • Proof of category like SC/ST/OBC/Minority, if applicable

It is important to note that there is no processing fee or collateral requirement for obtaining a MUDRA loan.

In the above list, a Business plan also known as a project report is a crucial document when applying for a bank loan. The bank uses this document to analyze the overall feasibility, risks, financial viability, and potential of a project. A well-crafted and convincing project report increases the chances of loan approval. With Finline you can craft a compelling project report in less than 10 minutes. That too in your language. Also, our reports are accepted by all public and private sector banks working in India. Click to create your project report.