Pradhan Mantri Mudra Yojana or Mudra Scheme was created for funding small-scale enterprises. National Small Industries Corporation (NSIC) has now discharged a project report where the entrepreneurs can get a loan of 4 lakh rupees at very low and affordable rates. With an additional investment of 2 lakh rupees, people can easily begin a papad making business.
What is the Mudra Scheme?
The scheme was exclusively launched for the expansion of the industries in India, especially focusing on small undertakings that fear taking risks. No collateral security is needed to claim the mudra loan. This loan is also extended to public and private sector banks along with many cooperative, foreign, rural banks and other financial institutions.
Why focus on small-scale industries?
The small and medium enterprises constitute about 40% of the total Gross Domestic Product (GDP) of India. They are mostly privately funded and maintained by a sole proprietor. They also face harsh competition and hence need security. So, the government must ensure the development of these small industries by introducing nurturing schemes and projects.
About the papad business
With a total investment of 6 lakh, investors can easily establish a papad producing business with a production capacity of 30000kg. The total expenditure includes both fixed and working capital. The fixed capital constitutes the cost of the required machinery and equipments. The working capital includes monthly expenses such as the salaries of the staff, rent, electricity, telephone, and other bills.
Requirement to kick-start a Papad business
To serve the purpose of making papad, you would need the following machines: a shifter, a dough machine, platform balance, electrically operated oven, marble tabletop, rolling pin and plate, aluminum utensils and racks.
Other than these, for the business, you also need a space of 250 square feet. In case, the proprietor does not possess their own space, they can also rent it at a minimum rent of Rs.5000per month.
The manpower needed is three unskilled labours, two skilled labours, and one supervisor. This would cost a total of Rs.25000. This has been already added to the working capital.
Application for Mudra Yojana
Under the Mudra Scheme, people are granted a loan of 4 lakh rupees. You can apply for a loan in any bank. You just need to fill in your details such as their name, address, current income, etc in a form. No processing or guarantee fee is charged and the amount of loan can be returned within the period of 5 years from when it was taken.
Papad making business can turn out to be very lucrative provided the marketing is done right. Right from the retails shops, Kirana stores to supermarkets, Papad are seen in stock everywhere.
