How to start a home sauce business in India under Mudra Yojana

If you are unsatisfied with your current job, or you are unemployed and want to start something new, then there is an option of starting a business with a small investment of just Rs 2 lakh. Yes, with this investment you can start making tomato sauce, which is in great demand amid the rising popularity of fast food. You would be surprised to know that the government is also extending help in terms of the loan facility to help you start the tomato sauce unit. 

According to a report by MoneyBhaskar, the total project cost under Pradhan Mantri Mudra Yojana would come around Rs 7.82 lakh. While going ahead, you need to arrange Rs 1.95 lakh on your own and the rest through loans.

As per the Mudra project, you can produce about 30,000 kg tomato sauce with an annual production cost of about Rs 24.37 lakh. If you supply 30,000 kg tomato sauce in the market at the rate of Rs 95 per kg, your yearly turn over would be Rs 28.50 lakh. This means you will have an income of Rs 4.12 lakh which will likely increase by the next year. 

Pradhan Mantri Mudra Yojana Details:

Micro Units Development & Refinance Agency Ltd. (MUDRA) is an institution set up by the Central government to provide fund facility to non-corporate, non-farm sector income generating activities of micro and small enterprises whose credit needs are below Rs 10 Lakh.

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Under Pradhan Mantri MUDRA Yojana (PMMY), three are three categories - 'Shishu', 'Kishore' and ‘Tarun’ - according to the stage of growth and fund requirement of the micro-unit. The three schemes cover loan amounts in the following way: 

1. Shishu covers loans up to Rs 50,000

2. Kishore covers loans above Rs 50,000 and up to Rs 5,00,000

3. Tarun covers loans above Rs 5,00,000 and up to Rs 10,00,000

Those who can avail assistance under Mudra from the government include all non-corporate small business segment (NCSBS) comprising proprietorship or partnership firms running as small manufacturing units, service sector units, shopkeepers, fruits/vegetable vendors, truck operators, food-service units, repair shops, machine operators, small industries, food processors and others in rural and urban areas.

Banks facilitate loans under Mudra scheme as per customer's requirements. Notably, loans under this scheme are collateral-free loans.