Feasibility Report for Trading Business | Project Report for Loan, CMEGP Loan, and PMEGP Loan

Starting a trading enterprise in India is one of the most viable entrepreneurial opportunities due to low starting expenses, quick inventory turnover, and great consumer demand. The Indian government has launched several plans to help first-time entrepreneurs and micro-enterprises, including the PMEGP (Prime Minister's Employment Generation Programme) and CMEGP (Chief Minister's Employment Generation Programme). These programmes offer easy access to collateral-free loans and generous subsidies. This blog has a comprehensive Feasibility Report for Trading Business, which may also be used as a Project Report for a loan application under the PMEGP loan, CMEGP loan, or any other MSME financial assistance programme.


Overview of Trading Business
A trading firm often buys goods in bulk from manufacturers or approved distributors and then resells them at a profit to consumers, small businesses, or even online. Companies in the trading business manufacture textiles, electronics, fast-moving consumer goods (FMCG), household appliances, agricultural equipment, and digital accessories. Trading firms are easy to begin because items do not go through any transformation or production processes, resulting in lower operational risks and faster returns.
India's thriving retail industry, powered by rapid urbanisation and digital change, provides an ideal opportunity to start a trading business, especially with the support of a PMEGP or CMEGP loan.

Objective of the Feasibility Report
This Feasibility Report for Trading Business is meant to help aspiring entrepreneurs determine the financial and operational viability of their company. It also functions as a standardised Project Report for a Loan that can be filed under government-sponsored loan schemes such as PMEGP and CMEGP. As part of the loan application process, you may submit this document to District Industries Centres (DICS), financial institutions, and implementing agencies.

Project Cost & Funding Pattern
Total Project Cost: ₹9,50,000
Breakdown of estimated cost:
Capital Investment (shop setup, racks, counters, furniture): ₹2,00,000


Initial Inventory (stock purchase): ₹5,00,000


Working Capital (for 3 months): ₹2,00,000


Miscellaneous & Contingency: ₹50,000


Funding Pattern:
Promoter’s Contribution (10%): ₹95,000


Loan to be requested under PMEGP loan or CMEGP loan: ₹8,55,000


The business is eligible for both the PMEGP loan (up to ₹25 lakh for non-manufacturing) and the CMEGP credit schemes offered by state governments.
Business Model & Operations
The company will run from a leased or owned facility in a semi-urban or metropolitan environment. Groceries, household goods, electrical equipment, and apparel will be obtained through wholesalers or directly from manufacturing facilities. On average, a 15%-30% profit is retained on things sold.
To expand its reach and scalability, the company may register as a seller on major eCommerce platforms like as Amazon, Flipkart, Meesho, or Jiomart. Furthermore, value-added services like home delivery and local promotions can help boost customer loyalty.
The organisation will maintain digital records using basic accounting software (such as Tally or Zoho Books) and will follow all GST regulations stipulated in the GST Act of 2017.

Market Feasibility Analysis
The Indian commerce and retail sector is estimated to reach USD 1.8 trillion by 2030, owing to increased consumer spending and digital penetration. Local demand for low-cost quality commodities, particularly in Tier II and Tier III cities, is continuously increasing.
Government initiatives such as CMEGP (implemented in states such as Maharashtra and Karnataka) and PMEGP (a nationwide scheme operated by the Khadi and Village Industries Commission) encourage microentrepreneurs to establish such companies. These loans come with credit-linked incentives that vary from 15% to 35% of the project cost, depending on the entrepreneur's category and business location.


Documents Required for PMEGP/CMEGP Loan
To apply for a PMEGP loan or CMEGP loan, the following documents are essential:
Aadhaar and PAN Card


Passport-size photographs


Project Report for Loan (Feasibility Report)


Bank passbook or account statement


Educational qualification proof (minimum 8th pass for PMEGP)


Caste certificate (if applicable)


Business address proof (rental agreement or electricity bill)


Supplier quotations for inventory or infrastructure


Affidavit of non-availability of previous subsidy


How to Apply for CMEGP Loan and PMEGP Loan?
Sign up for a PMEGP loan at kviconline.gov.in. Submit a company concept and feasibility study. Once shortlisted, the application is sent to a bank for loan approval.
CMEGP loan applications must be submitted through the state's online portal or the local District Industries Centre (DIC). Before submitting company ideas and supporting documents to banks, a selection committee reviews them.


Conclusion
A well-written Feasibility Report for Trading Business not only adds credibility to your business strategy but also raises your chances of securing a PMEGP or CMEGP loan approval. These programmes offer major benefits to micro-entrepreneurs, including capital subsidies and cheaper lending rates.
Whether you intend to develop a supermarket, an electronics store, or a clothing trading firm, this well-organised Project Report for Loan will help you confidently advance from concept to execution. Take advantage of these government incentives to start your own business and contribute to India's growing MSME ecosystem. For additional information or assistance, please contact us at +91-8989977769.