New Delhi: The Modi government’s Mudra loan program may be your “go-to” option if you want to start your own business with less money and a higher return. The Tomato Sauce business is one of the numerous small businesses that you can start and get funding for under the Pradhan Mantri Mudra Yojana (PMMY) Scheme. It is a profitable business idea that requires the minimum amount of self-funding and the maximum amount of government loan.
According to the information in the PM Mudra Scheme project profile, you can start a business making tomato sauce for Rs 7.82 lakh. However, the Mudra loan program will provide the remaining funds, and you will only need to invest Rs 1.95 lakh.
The type of machinery and equipment will cost Rs 2 lakh, while tomatoes, raw materials, ingredients, worker salaries, packing, telephone, rent, and other expenses will cost Rs 5.82 lakh. Rs 1.50 lakh will be the term loan amount. The loan for working capital will be Rs 4.36 lakh.
On an initial investment of Rs 7.82 lakh, reports indicate that the annual turnover could reach Rs 28.80 lakh. After deducting the annual expenses of Rs 24.22 lakh from the turnover of Rs 28.80 lakh, you will have a total annual net profit of Rs 4.58 lakh. Additionally, this means that you will earn approximately Rs 40,000 per month.
The banks and microfinance institutions (MFIs) participating in the Pradhan Mantri Mudra Yojana (PMMY) scheme offer loans in three categories: Loans of up to Rs. 50,000); Kishore (loans starting at Rs. 50002 to Rs. 5 lakh); and Tarun (loans ranging from Rs. 10 lakh).
