Financial Scheme Proposal for Agritourism Business in Karimganj District

This proposal provides a detailed financial breakdown for securing a Rs. 5 lakh loan for starting an Agritourism business unit in Karimganj, Assam. The proposal includes space requirements, furniture and fixture costs, machinery, and other necessary expenses for launching and operating the business.

1. Space Requirement

The Agritourism business will require space for guest accommodation, farming, and recreational areas. Here's the approximate space breakdown:

• Land for Accommodation & Farm: 1 acre (if not owned, renting cost: Rs. 10,000 per month)
• Building Construction: Basic lodging for guests – 2 rooms with attached bathrooms (Construction cost: Rs. 2,00,000)

2. Furniture and Fixtures

• Beds (2 units): Rs. 20,000
• Dining Table with Chairs: Rs. 15,000
• Basic Kitchen Setup: Rs. 10,000
• Other Furniture & Decorations: Rs. 10,000

Total Cost of Furniture and Fixtures: Rs. 55,000

3. Machinery and Equipment

• Farming Tools & Equipment: Rs. 40,000
• Irrigation System: Rs. 20,000
• Generators & Backup Power: Rs. 25,000

Total Cost of Machinery and Equipment: Rs. 85,000

4. Electrical Expenses

• Electrical Wiring & Lighting: Rs. 15,000
• Power Supply Connection: Rs. 10,000

Total Electrical Expenses: Rs. 25,000

5. Miscellaneous Expenses

• Licensing and Registration Fees: Rs. 10,000
• Marketing & Branding: Rs. 15,000

Total Miscellaneous Expenses: Rs. 25,000

6. Total Fixed Costs

Total Fixed Costs: Rs. 3,90,000

7. Working Capital

Monthly working capital required for the Agritourism business:

• Salary (2 staff members): Rs. 15,000
• Telephone & Internet Expenses: Rs. 1,500
• Transportation Expenses: Rs. 2,500
• Depreciation (10% per year): Rs. 3,250
• Interest on Capital (10% per annum): Rs. 4,150
• Raw Materials (Farming & Tourism Activities): Rs. 5,000

Total Working Capital Required per Month: Rs. 31,400

8. Cost of Production

Total Annual Cost of Production: Rs. 3,76,800 (Fixed Costs + Working Capital)

9. Profitability

Estimated Revenue from Agritourism business per month (including accommodation, farm visits, recreational activities): Rs. 50,000

Gross Profit per Month: Rs. 18,600

Net Profit per Month: Rs. 15,000

10. Break-Even Point

Break-Even Point: 2.5 years (based on fixed costs and monthly profits)

11. Debt Service Coverage Ratio (DSCR)

DSCR: 1.4 (sufficient to cover loan repayment and operational costs)

12. Repayment Schedule

Suggested repayment schedule for the Rs. 5 lakh loan:

• Loan Tenure: 5 years
• Interest Rate: 10% per annum
• Monthly EMI: Rs. 10,600
• Total Repayment (including interest): Rs. 6,36,000

Banks and Financial Institutions Offering Loans

• State Bank of India (SBI): Offers loans for rural enterprises. Apply Here
• Assam Gramin Vikash Bank (AGVB): Provides loans for small businesses in Assam. Apply Here
• North Eastern Development Finance Corporation Ltd. (NEDFi): Supports start-ups in Northeast India. Apply Here
• MUDRA Loans (Micro Units Development and Refinance Agency): Offers loans up to Rs. 10 lakh. Apply Here

Eligibility Criteria for Loan Application

• Applicant must be an Indian citizen, aged 18 and above.
• Must have basic knowledge or experience in the Agritourism industry.
• Should not have any outstanding loans or defaults in previous credit history.

Government Entrepreneurs Skill Development Programs for Agritourism

To ensure success in the Agritourism sector, it is important to acquire the necessary skills and training. Below are some skill development programs available for rural entrepreneurs:

1. Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY)

This scheme focuses on skill training for rural youth in various sectors, including tourism. Apply Here

2. Pradhan Mantri Kaushal Vikas Yojana (PMKVY)

Offers short-term training for skills in hospitality and tourism. Apply Here

Eligibility Criteria for Skill Development Programs

• Applicant must be between 18-35 years of age.
• Should be a resident of a rural area.
• Basic education required (up to Class 10 or 12, depending on the course).