Loanlekha: frequently asked questions

The report follows the format bank officers and DIC/KVIC officers use: cost of project, means of finance, 5-year projections, repayment schedule, DSCR and break-even, with every assumption listed. Acceptance depends on the bank and on whether your numbers are realistic, which is why the report flags weak points before you submit. Attach real machinery quotations, and if the bank asks for CA-certified projections, have a CA review and sign it.

Debt service coverage ratio = (net profit after tax + depreciation + interest on the term loan) divided by (interest + principal repaid) in a year. It shows how many times your cash earnings cover the loan instalments. Banks usually look for an average of 1.25 to 1.5 or more, and no single year far below that. The free calculator on this page shows your year-wise DSCR from the loan amount, rate, tenure and expected profit.

Margin money subsidy is a percentage of the project cost: 15% urban / 25% rural for general category, and 25% urban / 35% rural for special categories (SC, ST, OBC, women, minorities, ex-servicemen, differently abled, transgender, and NER, hill, border and aspirational districts). Project cost is capped at ₹50 lakh for manufacturing and ₹20 lakh for service units. You put in 10% (general) or 5% (special) of the project cost; the bank lends the rest. Use the PMEGP calculator below, and check pmegp.msme.gov.in for the current status of the scheme.

Shishu is up to ₹50,000, Kishore ₹50,001 to ₹5 lakh, Tarun ₹5 lakh to ₹10 lakh, and Tarun Plus above ₹10 lakh up to ₹20 lakh. Tarun Plus is only for borrowers who have taken and repaid a Tarun loan earlier. If you need more than ₹10 lakh for a new business, a term loan under CGTMSE (collateral-free) or PMEGP is usually the route.

Yes. Every purchase includes 4 revisions: ask for a different loan amount, longer moratorium, real quotation figures, a rewritten section or a Hindi version, and the whole report is recalculated. You can also edit the Word download yourself.

Yes. Choose 'Hindi' or 'English tables + Hindi explanations' as the report language. Many banks prefer English tables, so the mixed option keeps the numbers in English and explains each section in Hindi.

For most Mudra and PMEGP loans the bank does not insist on a CA certificate, but some branches and larger loans (and CMA data for working capital limits) do. Ask your branch. This report gives the CA a complete draft to review, which usually costs less than having them prepare it from scratch.

General chatbots write fluent text but the arithmetic rarely ties up: EMIs, interest splits, depreciation and balance sheets come out inconsistent, and scheme rules are often out of date. Loanlekha is built for one job: it applies the scheme's margin and subsidy rules, calculates the loan schedule from a reducing balance, checks DSCR and break-even year by year, and tells you what the bank officer will question.

Your first report is free to try. After that, ₹249 / $5 buys one complete report with 4 revisions. There is no subscription. The EMI, DSCR, PMEGP and Mudra calculators on this page are free.