Trading remains one of the most profitable industries in India's robust business ecosystem, particularly among small and medium-sized businesses. Finance is frequently required to establish or grow a trading business. Various financial support schemes, such as CMEGP, PMEGP, MUDRA, and regular bank loans, provide traders with the necessary money. However, the success of any loan application is heavily reliant on your project report for a bank loan and a comprehensive feasibility report.
This blog describes the entire loan application procedure for traders, focusing on all major government programmes and emphasising the importance of the project report for bank loans, CMEGP, PMEGP, MUDRA, and feasibility reports at each level.

Step-by-Step Loan Application Procedure for Traders

1. Finalise your trading business plan.
Begin by determining your company model: what you intend to trade, who your suppliers and consumers will be, and how you will function. This foundation will help you write your feasibility report and project report for a bank financing.

2. Create a detailed project report.
All schemes, including CMEGP, PMEGP, and MUDRA, require a well-documented project report to obtain a bank loan. This report should contain:

Business overview and objectives


Promoter’s background

Product details and trading model


Marketing and operations plan

Five-year financial projections

Capital requirement and loan amount


Repayment schedule and loan justification

This report must be tailored based on the scheme—i.e., a CMEGP project report, a PMEGP project report, or a MUDRA loan application report.
3. Prepare a Feasibility Report
A feasibility report is essential to assess whether the trading business will be financially viable. It includes:
Market analysis and demand potential


SWOT analysis

Break-even point

Return on investment (ROI)


Repayment capability

This feasibility report plays a crucial role in both bank loan approvals and government scheme evaluations.
Loan Schemes Available for Traders
PMEGP (Prime Minister’s Employment Generation Programme)
Implemented by KVIC and the MSME Ministry

Offers a subsidy up to 35%

Meant for new entrepreneurs in the trading, manufacturing, and service sectors

Requires a strong PMEGP project report and EDP training

CMEGP (Chief Minister’s Employment Generation Programme)
State-level version of PMEGP in states like Maharashtra, Karnataka, and others

Subsidy up to 30% based on area and category

Needs a detailed CMEGP project report and a solid feasibility report

MUDRA (Micro Units Development and Refinance Agency) Loan
For businesses at different stages:

Shishu: Up to ₹50,000


Kishor: ₹50,000 to ₹5 lakh

Tarun: ₹5 lakh to ₹10 lakh


No collateral required

Requires basic documents and a simple project report for a bank loan


Bank Loans
Offered by public and private sector banks

Based on credit score, business profile, and repayment capacity


Approval hinges on a well-prepared project report for a bank loan and a feasibility report

Documents Required for Loan Applications
Regardless of the scheme—CMEGP, PMEGP, MUDRA, or a direct bank loan—the basic documentation includes:
Aadhaar & PAN Card

Passport-size photos

Caste and category certificates (if applicable)


EDP training certificate (for CMEGP/PMEGP)

Business address proof

Bank account details

GST registration (if applicable)

Project report for bank loan

Feasibility report

Final Thoughts

The loan application procedure for traders entails extensive preparation, documentation, and comprehension of each scheme's unique requirements. A complete project report for a bank loan, combined with a properly produced feasibility report, is the foundation of every successful loan application, whether CMEGP, PMEGP, MUDRA, or a standard bank-funded option.
To minimise delays or rejections, choose the appropriate scheme for your company's size and stage, and always submit complete and exact documentation. For additional information or assistance, please contact us at +91-8989977769.