Canara Bank Business Loan Interest Rate

Canara Bank is one of the leading public sector banks that offer loans to Micro, Small and Medium Enterprises (MSMEs) at an interest rate of 9.20% p.a. onwards. Canara bank offers business loans to SMEs (Small and Medium Enterprises), as well so that they can start their own business. The Canara bank provides various business loan schemes, so that they can serve the all the business related requirements.

Canara Bank – MSME/Business Loan Interest Rate
Interest rate	9.20% p.a. onwards
Loan amount	Min. Rs.50, 000 to Max. up to 5 crore & above
Repayment tenure	Max. up to 5 years

Note: The mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the bank and RBI. GST and service tax shall be levied extra on the mentioned fee & charges.

Also know – Which bank gives a business loan for the lowest interest rates?

Eligibility Criteria

Before applying for any loans or business loan the person should check the eligibility criteria because every bank will check the eligibility of that person and if that person is eligible than only they will give loan to that person.  The eligibility for business loan in Canara bank is as follows:

• The age of the applicant should be 21 years to 65 years
• The applicant should have at least 3 years of their current business experience
• Self- employed individuals, Proprietors, Private Ltd. Co., Manufacture and Service providers and Partnership firm

Documents required for Loan Application

When the person is availing for business loan they have to submit the documents to the banks, so that they verify your documents before giving you any business loan. Some of the documents are been mentioned below, they are:

• Duly filled application form with 2 passport size photographs
• PAN card: For individual or company or firm
• KYC documents: Passport, Aadhar card, Driving license, Voter’s ID card
• Last 6 months’ bank statements
• Business incorporation certificate
• Continuation proof: Sales tax certificate or Trade License or Income Tax Return or establishment
• Last 3 years of Income tax return statements
• Any other document required by Canara Bank

How to Calculate Your Monthly EMI on – Business Loan EMI Calculator

Schemes offered by Canara Bank for Business Loan

The schemes offered by Canara Bank for business loan are as follows:

• Working Capital Scheme
• Export Finance Scheme
• Capital Investment Scheme
• Composite Requirements Scheme
• Credit Guarantee Fund for Micro and Small Enterprise

Factors that affect the rate of interest in Business loan

The business loan will be offered to any person who runs a legitimate business and will have a good turnover. Some banks will evaluate your eligibility and then provide you loans and based on your capacity the banks will be decided the rate of interest. The following are some basic factors which affects the interest rates in business loan, they are:

• Turnover of the business
• Track record of the business
• Cash flow of the business
• What type of business whether Partnership / Private or public limited/ Proprietorship
• Credit score of the company
• Profit earned by business.