A Mudra loan project report is a 6–10 page business plan. It shows your project cost, where the money comes from (including your own 20% share), your sales and profit for 3–5 years, and your ability to repay through break-even and DSCR. The government has no official format, so each bank uses its own norms. You need the report for Kishore (₹50,001–₹5 lakh) and Tarun (₹5–10 lakh) loans, and you can apply online through the official JanSamarth portal (Business Activity Loan → PMMY/Mudra). The official document list is on MyScheme's PMMY page.
Searches for "mudra loan project report" rose 120% in the last 7 days (Google Trends, fetched 1 November 2026). Most pages that rank for it either sell a report generator or show numbers no bank officer would believe. Yeh page tumhare liye hai if you want a format you can copy and a sample with real, worked numbers. You don't have to pay anyone for it.
TL;DR: Copy the 10-section format below and replace the sample numbers with your own quotations and prices. Check that your DSCR stays above about 1.5 even when sales are 20% lower. Then apply on jansamarth.in or at your bank branch. Mudra charges no agent fee, and Mudra has no subsidy.
Do you need a Mudra loan project report? Requirements by category
| Category | Loan amount | Project report? | Notes |
|---|---|---|---|
| Shishu | Up to ₹50,000 | Usually not | A short business description and quotations are usually enough. SBI asks for no margin at this level. |
| Kishore | ₹50,001 – ₹5 lakh | Yes | Covers technical and economic viability plus current sales. Banks usually want balance sheets and projections from ₹2 lakh up. |
| Tarun | ₹5 lakh – ₹10 lakh | Yes, in more detail | Expect 20% margin. SBI charges a 0.50% processing fee and allows tenure up to 7 years. |
| Tarun Plus | ₹10 lakh – ₹20 lakh | Yes, plus 2 years of financials | Only for borrowers who have fully repaid a Tarun loan. First-time borrowers are capped at ₹10 lakh. |
Sources: SBI PMMY page and Indian Bank Tarun Plus page. Mudra loans need no collateral because they are guaranteed under CGFMU through NCGTC. Interest rates are set by each lender, not the government. For example, Indian Bank lists 10.25% for Tarun Plus.
Mudra loan project report format: the 10-section template
Copy this outline into Word, Google Docs or Excel. One page per section is enough. Bank officers prefer short reports with clear numbers.
- Executive summary: the business, its location, total project cost, loan asked for, Mudra category, expected Year-1 sales and average DSCR, in 5–6 lines.
- Promoter profile: name, age, education, experience in this trade, Udyam number, PAN and address.
- Business description: the product, the process flow, installed capacity and licences (FSSAI, trade licence, GST if applicable).
- Market analysis: who buys from you, local competitors and their prices, and your sales channels.
- Machinery and suppliers: an itemised list matching attached quotations, with supplier name and GSTIN.
- Project cost: fixed assets, pre-operative costs and working capital.
- Means of finance: your own contribution (usually 20%), the term loan and the working capital limit.
- Financial projections: profit and loss, balance sheet and cash flow for 3–5 years, with assumptions written out.
- Key ratios: DSCR, break-even point and current ratio.
- Repayment schedule: EMI, tenure, any moratorium, and year-wise principal and interest.
Filled Mudra loan project report sample: ₹5 lakh pickle unit
The sample is a small mango, lemon and chilli pickle unit run from a rented shed. Food processing is a common ODOP pick. Districts like East Godavari (pickles and fruit products) and Guntur (chillies) have the raw material right next door. All prices are indicative, so use real quotations from your own district.
1. Project cost and means of finance
| Item | Amount (₹) |
|---|---|
| Cutting machine (45,000), SS pickle mixer 50 kg (60,000), 2 HP pulveriser (40,000), SS vessels and tables (35,000), induction and band sealers (25,000), scales (10,000) | 2,15,000 |
| Shed fit-out: tiling, electrical, drainage | 40,000 |
| Rent deposit | 30,000 |
| FSSAI licence, Udyam, label design, preliminary costs | 15,000 |
| Working capital: first raw-material cycle, packaging, credit to shops | 2,00,000 |
| Total project cost | 5,00,000 |
| Own contribution (20%) | 1,00,000 |
| Mudra Kishore term loan (80% of ₹3 lakh fixed cost) | 2,40,000 |
| Mudra working capital limit (80% of ₹2 lakh) | 1,60,000 |
Total loan: ₹4 lakh, which falls in the Kishore category. SBI charges no processing fee for Kishore and allows tenure up to 5 years below ₹5 lakh. The interest rate here is assumed at 11%. On a 60-month term loan that gives an EMI of about ₹5,218.
2. Sales assumptions
- Capacity: about 1,000 kg a month on one shift, or 12,000 kg a year.
- Utilisation: 60% in Year 1 (7,200 kg), 70% in Year 2 (8,400 kg), 80% in Year 3 (9,600 kg).
- Blended selling price to retailers and distributors: ₹240/kg. The price is held flat for all three years to stay conservative.
- Variable cost per kg: raw material (fruit, oil, spices, salt) ₹115, packaging ₹20, and distribution or trade schemes ₹12 (5% of price). That totals ₹147/kg, leaving a contribution of ₹93/kg (38.75%).
3. Three-year profit projection
| ₹ | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Sales | 17,28,000 | 20,16,000 | 23,04,000 |
| Raw material | 8,28,000 | 9,66,000 | 11,04,000 |
| Packaging | 1,44,000 | 1,68,000 | 1,92,000 |
| Distribution / trade schemes | 86,400 | 1,00,800 | 1,15,200 |
| Wages (2 helpers, +5% a year) | 2,16,000 | 2,26,800 | 2,38,140 |
| Rent (₹8,000/month, +5% a year) | 96,000 | 1,00,800 | 1,05,840 |
| Power, gas, water | 54,000 | 63,000 | 72,000 |
| Repairs and miscellaneous | 24,000 | 26,000 | 28,000 |
| Operating profit (EBITDA) | 2,79,600 | 3,64,600 | 4,48,820 |
| Interest (term loan + working capital limit) | 42,116 | 37,707 | 32,793 |
| Depreciation (15% machinery, 10% shed, WDV) | 39,250 | 34,013 | 29,541 |
| Net profit | 1,98,234 | 2,92,880 | 3,86,486 |
| Net margin | 11.5% | 14.5% | 16.8% |
Tax isn't shown. At these profit levels a sole proprietor with no other income usually owes nothing under the new regime, but confirm this with your CA. Term-loan principal repaid is ₹38,100 in Year 1, ₹42,509 in Year 2 and ₹47,423 in Year 3, leaving ₹1,11,968 outstanding at the end of Year 3.
4. Break-even
Annual fixed costs are ₹3,90,000 in cash costs (wages, rent, power, miscellaneous), ₹42,116 in interest and ₹39,250 in depreciation, which adds up to ₹4,71,366. Divide by the ₹93/kg contribution and you get 5,068 kg a year, or about 422 kg a month. That works out to roughly ₹1.01 lakh of sales a month. It is about 70% of the planned Year-1 volume, which leaves a reasonable safety margin. If you ramp up from 250 kg in month 1 by 50 kg a month, you cross break-even around month 5. Your ₹1 lakh own contribution comes back in roughly 6 months of Year-1 profit.
5. DSCR (debt service coverage ratio)
The formula is (net profit + depreciation + interest) ÷ (term-loan principal + all interest). The annual debt service is the EMI total of ₹62,616 plus ₹17,600 of interest on the working capital limit, which comes to ₹80,216.
| Scenario | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Bank-style DSCR | 3.49 | 4.55 | 5.60 |
| After owner drawings of ₹10,000/month | 1.99 | 3.05 | 4.10 |
| Year 1 with sales 20% lower (5,760 kg) | 1.82 | With drawings: 0.32 | |
Most banks look for a DSCR of about 1.5 or higher. That is general banking practice, not a PMMY rule. The sample passes easily on paper. The stress-test row is the one to take seriously: if sales come in 20% lower, the EMI still gets paid but you can't take ₹10,000 a month home. Bank ko 1.82 dikhega, lekin ghar ka budget 0.32 dikhayega. So keep 6 months of household expenses aside, separate from the ₹1 lakh margin.
How to submit your Mudra loan project report: step-by-step
- Register on Udyam and get your FSSAI licence. A food unit selling above ₹12 lakh a year needs a state licence, not just basic registration.
- Collect 2–3 machinery quotations with GSTIN. Your report figures must match them exactly.
- Fill in the template above with your own numbers. Write out every assumption, such as price per kg, kg per month and cost per kg.
- Run the stress test with sales 20% lower. If DSCR falls below 1.5, cut the project cost or raise your own share.
- Apply online on JanSamarth (Business Activity Loan → PMMY). SBI customers can use jansamarth.in/apply/sbi. Alternatively, go to your branch with the printed report. UCO Bank's Kishore/Tarun application form shows the kind of details banks ask for.
- Answer the branch visit confidently. The officer will ask about numbers in your report. If you made it yourself, you'll know them.
Documents to attach
- KYC (Aadhaar, PAN) and address proof
- 6–12 months of bank statements
- Udyam registration certificate and business licences
- Partnership deed or MOA/AOA if the business is not a proprietorship
- Machinery quotations, rent agreement and photos of the premises
Mistakes that get Mudra project reports rejected
- Too-good-to-be-true margins. A 40% net margin on pickles makes the officer suspicious immediately, so keep it within 10–18%.
- No working capital line. If the report covers only machinery, the unit stalls by month 3.
- Numbers that don't match the quotations, or a generic report clearly bought online.
- Asking for more than ₹10 lakh on your first loan. Tarun Plus needs a repaid Tarun loan first.
- Assuming a subsidy. PMMY has no capital subsidy, and "35% Mudra subsidy" claims are false. For a food-processing unit, check separately whether PMFME (a different scheme with its own credit-linked subsidy) is open in your state.
Who this is for, and who should skip it
Right for you if you have ₹1–2 lakh of your own savings, some experience in the trade, and a project in the ₹2–10 lakh range in your home district. To pick a product your district already has a supply chain for, browse kidharmilega.in's district-wise ODOP guides. One example is mango jelly in Vizianagaram.
Skip it if you need under ₹50,000 (a Shishu loan needs only a simple plan), can't put in 20% margin, or have no buyer in mind yet. Paise kaise aayenge has to be answered before the loan is.
Scam warning: Mudra never asks for a fee
PIB Fact Check has flagged several fake offers in 2026. In May 2026 a fake letter offered ₹5 lakh for a ₹2,550 "fee". In June 2026 another offered ₹10 lakh for ₹6,550. In September 2026 people received fake WhatsApp "loan approved" messages. MUDRA is a refinancing agency. It doesn't lend to individuals directly, uses no agents and never sends approvals on social media. Never share an OTP. You can verify suspicious messages at PIB Fact Check, and the scheme's own site is mudra.org.in.
Frequently asked questions
Is a project report mandatory for a Mudra Shishu loan?
Usually no. For Shishu loans up to ₹50,000, banks generally accept a short business description, KYC and quotations. The government's document list asks for a project report covering technical and economic viability for Kishore and Tarun loans. Some branches still ask for a one-page plan even for Shishu, so check with your branch.
Can I make a Mudra loan project report myself without a CA?
Yes. There is no official government format and no rule requiring a CA for Kishore loans. A self-made report with clear assumptions, real quotations and a worked DSCR often does better because you can explain every number at the branch. For larger Tarun or Tarun Plus loans, some branches may ask for CA-certified projections, so confirm locally.
What DSCR do banks want for a Mudra loan?
Most banks look for an average DSCR of about 1.5 or higher. This is general banking practice, not a PMMY rule. Calculate it as net profit plus depreciation plus interest, divided by principal plus interest. Also test it with sales 20% lower and after deducting your monthly household drawings, so you know you can actually repay.
How much own contribution do I need for a Mudra loan?
At SBI, no margin is required up to ₹50,000. Above that, the borrower usually puts in 20% of the project cost. For example, on a ₹5 lakh project you contribute ₹1 lakh and the bank lends ₹4 lakh. Indian Bank also lists 20% margin for Tarun Plus. Margin norms can vary by lender.
Where do I apply online for a Mudra loan?
The official online channel is the JanSamarth portal at jansamarth.in. Choose Business Activity Loan and then PMMY/Mudra. SBI has a direct link at jansamarth.in/apply/sbi. You can also apply offline at any bank branch with your project report and documents. Never pay agents or anyone promising approval over WhatsApp.
Is there any subsidy on a Mudra loan?
No. PMMY offers collateral-free loans backed by a CGFMU guarantee, but there is no capital subsidy. Messages promising a 35% Mudra subsidy are false. If you run a food-processing unit, you can separately check whether PMFME, a different scheme with its own credit-linked subsidy and portal, is open in your state.
Sources
- Pradhan Mantri MUDRA Yojana (PMMY) · MyScheme, Government of India
- PMMY – SME Government Schemes · State Bank of India
- PMMY Mudra Tarun Plus · Indian Bank
- PMMY Kishore/Tarun application form · UCO Bank
- PIB Fact Check · Press Information Bureau
- Centre doubles loan limit under Pradhan Mantri Mudra Yojana to Rs 20 lakh · Business Standard
- Received Mudra loan letter promising Rs 10 lakh for Rs 6,550 fee? This might be a scam · Outlook Money