Canara Bank Business Loan

Interest Rates of Canara Bank Business Loan

Note:

*0.50% concession applicable to women beneficiaries

#0.25% concession in case of accounts covered under Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE)

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Types of Canara Bank Business Loan

Canara MSME Gold Loan

Purpose: Canara MSME Gold Loan scheme can be availed as Overdraft or Demand Loan facility against gold ornaments/jewellery held in the name of individual/proprietor respectively, for financing various business requirements.

Loan Amount: Rs 0.50 lakh- Rs 35 lakh

Tenure: Up to 1 year

Security: Gold ornaments, specially minted gold coins sold by banks (weight not exceeding 50 grams per customer). Gold coin, bullion, etc cannot be used as collateral.

MSME CAN BEML

Purpose: MSME CAN BEML is a term loan facility for purchasing earth moving, construction, and mining equipments from BEML.

Target Group: Earth moving contractors, railway road, canal work contractors, etc. and business units other than trusts planning to avail loans for service and manufacturing activities.

Loan Amount: Rs 20 lakh to Rs 3 crore

Margin:

• For loan up to Rs 100 lakh- 15%
• For loan above Rs 100 lakh- 20%
• 85% or 80% on road value of equipment/vehicle

Tenure: 5 to 7 years

Security:

For New Customers-

For Loans covered under CGTMSE- Rs 20 lakh and up to Rs 2 crore-

• Proprietor, Partners and Directors shall be taken as guarantors without fail.
• Hypothecation of equipment’s/ machinery / vehicle purchased / assets created out of Bank finance.
• No collateral security and/ or third party guarantee shall be obtained.

For Loans not covered under CGTMSE–

In addition to primary security, minimum 75% of collateral security in the form of mortgage of immovable property/financial securities shall be obtained.

For Existing Customers–

Suitable decision regarding collateral security based on satisfactory dealings/credit history of the customer will be taken.

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MUDRA Canara Atithi

Purpose: Mudra Canara Atithi credit facility can be availed to fulfil the working capital needs and term loan requirements for purchase of equipments required for setting up the businesses engaged in food and beverages sector.

Target Group:

• Micro and Small Enterprises- Srvices under MUDRA (Shishu, Kishore, Tarun)
• Cafeteria, Restaurants, Dharshani Hotels with self-service facility, Mobile canteens, dhabas, fast food centres

Loan Amount: Up to Rs 10 lakh as per MUDRA variants

Margin:

• Term Loan- 15%
• Working Capital/Short Term Loan- 10%

Tenure:

• Short Term Loan- Up to 12 months
• Term Loan- Up to 5 years including moratorium period based on cash flow
• Working Capital- Up to 2 years

Security:

• Primary Security- Assets created out of loan proceeds and existing business assets of the borrowers
• Collateral Security- No collateral security

Canara GST

Purpose: Canara GST can be availed to fulfil working capital requirements of GST registered MSME borrowers (new/existing) by way of fund based exposure

Target Group: Micro, Small and Medium Enterprises (Manufacturing/Service)

Loan Amount: Above Rs 10 lakh to Rs 10 crore

Nature of Facility:

Working Capital-

• Fund Based
• Non-fund based facility is also offered as a part of fund-based limit under the scheme. Non-fund based facilities offered are Letter of Credit (Inland/foreign/trade credit) for procurement of raw materials and Bank Guarantees to be used in place of Advance Payment from buyers.

Security:

Primary Security- Primary assets created out of Bank Finance

Collateral Security- At least 75% of loan amount in the form of:

• Mortgage of immovable properties land and building
• Properties in the name of sister-in-law, brother-in-law, daughter-in-law, father-in-law, mother-in-law and son-in-law, provided they stand as guarantors
• Vacant land, up to 25% of permitted security comfort
• For properties that are less than 1 year old, i.e., latest execution of sale deed is done within 1 year, property value shall be taken as ‘sale deed value’ or ‘current guideline value’, whichever is higher
• Rented properties can also be accepted as properties

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Canara Smart Professionals

Purpose: Canara Smart professionals scheme is offered to MSME professionals to purchase or construct office premises, acquire machineries, equipments, furniture, fixtures, including expansion and modernization of existing units. This scheme is also offered as need based working capital limits in the form of secured OD.

Target Group: Architects, CAs, Civil Engineers, Cost Accountant and Company Secretary

Loan Amount:

Minimum- Rs 10 lakh

Maximum-

• Urban and Metro Centres- Rs 2 crore
• Other Centres- Rs 50 lakh
• Working capital requirement- up to Rs 5 lakh

Margin:

• Term Loan- 25%
• Working capital- NIL (secured OD)

Tenure:

• Working capital- up to 1 year
• Term Loan- up to 10 years including moratorium period based on cash flow

Nature of Loan Facility: Composite Loan (Term Loan and Working Capital Loan)

Processing Charges: Up to 50%

Security:

• No collateral security required if realizable value of immovable properties mortgaged as primary security is more than 100%
• At least 50% collateral security in the form of mortgage of immovable property or financial securities (such as TD with the bank/KVP/NSC/SV of LIC Policy/RBI relief bonds/trustee securities/government/IVPs)

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Canara Udyog

Purpose: Canara Udyog loan facility fulfils all the credit requirements of MSME borrowers in manufacturing sector and ancillary business units.

Loan Amount: Above Rs 10 lakh to Rs 10 crore

Nature of Credit Facility: Term loan and working capital (Fund-based and Non-fund based)

Margin:

• Term loans and non-fund based loans- 25%
• Working Capital Limits- 20%

Tenure:

• Term loan- up to 7 years
• Working Capital- up to 1 year

Security:

Hypothecation: Stocks and/or book debts (not more than 90 days) acceptable to the bank

Mortgage of immovable property/approved securities whose value is not less than 125% (prime and/or collateral/approved securities) of the limit.

Vacant Land may be accepted as security, only if

• it is allotted by any government / Statutory body or
• it has been acquired by Government for development of any industrial / residential/ commercial purpose or
• Entity has been permitted by the government / statutory body for acquiring the same for industrial / residential purpose or
• land usage change has been permitted by competent authority

Personal guarantee of partners, promoter directors and owner of the immovable property.

Agricultural land not to be taken as security

Canara Vyapar

Purpose: Canara Vyapar business loan scheme finances working capital requirements and business related term loan requirements of applicants

Loan Amount: Above Rs 10 lakh to Rs 10 crore

Tenure:

• Term loan- up to 7 years
• Working Capital- up to 1 year

Margin:

• Term loans and non-fund based loans- 25%
• For construction (Term Loan)- 30%
• Working capital loan- 10% to 20% (based on loan amount)

Security:

Hypothecation: Stocks and/or book debts (not more than 90 days) acceptable to the bank Ø

Mortgage of immovable property (Commercial/Residential Property only)/approved securities whose value is not less than:

• 133% (prime and/or collateral/approved securities) of the limit.
• 150% (prime and/or collateral/approved securities) of the limit in case of commission agents. Ø

Personal guarantee of partners, promoter directors and owner of the immovable property.

Immovable property in the name of the borrowing unit, proprietors, partners, directors of the private limited company are accepted.

Immovable property in the name of Family members of proprietor/ partners directors is also accepted subject to offering their her personal guarantee

Agriculture land, vacant site, tenanted premises (other than those to PSUs, PSBs, MNCs), properties prohibited by statutory authority are not acceptable

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Pradhan Mantri Mudra Yojna (PMMY)

Purpose: Pradhan mantra Mudra Yojna can be availed to meet business related term loan and working capital requirements of MSME borrowers by bringing them to formal financial system

Loan Amount:

Margin: 15%-25%

Tenure: Up to 7 years

Canara MSME CAP (Credit Against Property)

Purpose: Canara MSME CAP credit facility fulfils the business requirements of MSME borrowers, both manufacturing and services, along with self-employed, through fund and non-fund based exposures against security of land and building belonging to unit or promoters of unit or close relatives of promoters

Loan Amount:

• Minimum loan amount- above Rs 10 lakh
• Manufacturing unit- Up to Rs 20 crore
• Service unit- Up to Rs 10 crore

Tenure:

• Term Loan- up to 10 years
• Working Capital- up to 1 year

Processing Charges: Up to 50%

Security:

Primary Security- Assets created out of Bank Finance

Collateral Security-

• Mortgage of immovable properties with up to 100% to 150% of loan amount
• Vacant land shall be accepted up to 25% of permitted security comfort
• Assignable Life Insurance policies, units of Unit Trust of India and other Mutual Funds approved by the Bank, bonds issued by Government, National Savings Certificates, Govt. promissory notes, Specified Post Office Term Deposits, 10 Year postal savings certificates, Relief bonds, Kisan Vikas Patra, specified flexi bonds, bonds issued by Konkan Railway Corporation Ltd., term deposits with Canara Bank.

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Canara MSE Vijeta

Purpose: Canara MSE Vijeta can be availed to fulfil the business requirements of women under Micro and Small Enterprises including retail traders for purchase/construction of business premises, purchase of machinery, equipments, vehicles and working capital.

Loan Amount: Above Rs 10 lakh to Rs 2 crore

Margin: 20%

Nature of Credit Facility: Term loan or working capital through overdraft facility

Tenure:

• Up to 7 years including suitable moratorium
• Working Capital: Up to 2 years

Processing Charges: Up to 75%

Security:

• Prime Security- Hypothecation of assets created out of Bank Finance
• Collateral Security- Up to Rs 1 crore to be covered under CGTMSE at the option of borrower else Equitable Mortgage of Title Deeds of property to the extent of 60% of loan amount

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Laghu Udyami Credit Card (LUCC)

Purpose: Laghu Udyami Credit Card Finance facility helps to meet the working capital requirements of village industries, artisans, micro and small enterprises including tiny units

Loan Amount: Up to Rs 10 lakh

Tenure: Up to 3 years

Security:

• Stocks or receivables created out of facility wherever applicable
• Collateral/Third Party Guarantee (up to Rs 10 lakh)- NIL

Doctor’s Choice

Purpose: Doctor’s Choice Business Loan can be availed to meet the working capital and term loan requirements of the applicant for the following purposes:

• Setting up clinic, polyclinic, hospital, nursing home, pathology, X-ray labs, physiotherapy centres, etc.
• Purchase of equipments such as surgical, X-ray, CT Scan, Electro medical, operation theatre, refrigerators, air conditioners, generators, etc.
• Expenses for business trips
• Quarters for resident doctors
• Renovation, expansion or modernization of existing business premises
• Purchase of vehicles and ambulance
• For setting up an in-house medical store managed by a qualified pharmacist

Loan Amount:

• Up to Rs 5 crore
• Sub-limit of working capital- 20% of maximum limit subject to a ceiling of Rs 50 lakh

Tenure:

• Term Loan- up to 7 years
• Working Capital- up to 2 years

Margin:

Up to Rs 25,000- NIL

Above Rs 25,000-

• Term loan for construction of business premises including resident doctors quarters- 25%
• Term Loan for equipments- 20%
• Working Capital- 20%

Processing Charges:

• Up to Rs 5 lakh- NIL
• Above Rs 5 lakh- As per extant guidelines

Upfront Fees:

• Up to Rs 5 lakh- NIL
• Above Rs 5 lakh- 75% of normal charges

Security:

• Mortgage of land and building for acquisition/construction of which term loan is granted, subject to ensuring mortgage of the property.
• Hypothecation of equipments for which term loan is granted.
• Hypothecation of stocks of medicines, consumables in case of working capital (OCC).
• Up to Rs100 lakh, eligible loans shall be covered under CGTMSE, otherwise suitable security in the form of immovable property/approved securities not be less than 100% of the loan amount shall be insisted.
• Agriculture land, immovable properties standing in the name of Hindu Undivided Family who are proprietors/partners in the borrowing unit cannot be used as security. Properties which are tenanted, properties in the name of the directors and their close relatives in case the borrower is a Public Limited Company are also not accepted as security.

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Canara Caravan

Purpose: Canara Caravan finance facility can be used for purchasing new commercial vehicles (small, light, medium, heavy or passenger vehicle). For eg., trucks, tankers, trailers, luxury buses, tippers and passenger vehicles, etc.

Loan Amount: Rs 25 lakh to Rs 5 crore

Tenure: Up to 5 years

Margin:

Upfront Fee: Concession of 0.25% from the applicable rate, for proposals scored above 75%

Security:

Prime Security- Hypothecation of vehicles financed by bank

Collateral Security-

• Up to Rs 1 crore- Minimum 25% by way of land and building or CGTMSE cover
• Above Rs 1 crore- Minimum 25% by way of land and building

Canara Contractor Scheme

Purpose: Canara Contractor Scheme helps to fulfil the term loan and working capital requirements for purchase of brand new equipment or office premises to the existing and prospective contractors and sub-contractors

Loan Amount:

• Term Loan- Up to Rs 5 crore
• Above Rs 10 lakh- Up to Rs 10 crore

Tenure:

• Working Capital- Up to 1 year
• Term Loan- Up to 5 years including moratorium period if availed for purposes other than construction; Up to 7 years including moratorium period if availed for construction/construction and purchase of equipments

Processing Charges/Upfront Fee commission: 25% concession for both fund-based and non-fund based limits

Security:

Prime Security:

• Secured OD- Collateral security of immovable property
• Term Loan- Assets created out of bank Finance

Collateral Security: Mortgage of immovable property by way of land and building situated in semi urban/urban/metro centres

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Canara MSME Expo

Purpose: Canara MSME Expo is a term loan facility availed to purchase software/hardware for fashion designing, travelling abroad for business purposes, participation in trade fairs, exhibitions abroad or International Trade Fairs in India

Loan Amount: Up to Rs 50 lakh

Tenure: Up to 3 years with moratorium period of up to 3 months

Margin: 15% to 25%

Security:

• Limits up to Rs 10 lakh- Covered under CGTMSE guarantee scheme
• Limits above Rs 10 lakh- Either CGTMSE cover or primary/collateral security in the form of land and building to the extent of 100% of loan amount

Eligibility Criteria for Canara Bank Business Loan

For Canara MSME Gold Loan

• MSME Units (Individual and Proprietorship Firms only)
• Unit/shop shall be with running activity

For MUDRA CAN Atithi

• Existing applicants should have a satisfactory track record
• New applicants subject to compliance of KYC, due to negligence
• Prospective borrowers are localites and should be experienced in the related fields to be run with experienced/skilled staff
• Individuals, proprietorship and partnership firms
• Financing hotels located at National Highways should necessarily be run by permanent residents of same locality subject to compliance of regulatory guidelines
• Scheme is applicable for accounts risk rated up to moderate risk only

For Canara GST

• New applicants with minimum business operation of 6 months and existing borrowers at the time of renewal
• GST return of minimum for past 6 months and at least 75% of turnover reflected in GST return should have been routed through the bank account
• Applicants rated up to moderate risk as per internal rating of the bank are eligible under this scheme
• Applicants having or proposed to have sole banking arrangement for working capital requirements can avail this scheme.

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For Canara Vyapar

Loans to service sector under MSME including Retail Trade, Commission agents, professionals and self-employed, etc. (other than manufacturing)

For Pradhan Mantri Mudra Yojna (PMMY)

The applicant should be Non-Corporate Small Business Segment in rural and urban areas, with financing needs of less than Rs 10 lakh, subject to satisfying MSME definition. This includes:

• Individuals, proprietorship, partnership firms running as small manufacturing units
• Shopkeepers
• Fruits/vegetable vendors
• Truck operators
• Food service units
• Repair shops
• Machine operators
• Small industries
• Artisans
• Food Processors, etc.

For Canara MSME CAP

• The applicant should be individual/partnership firm/company (except NBFC)/traders/businessmen/professionals or self-employed person/proprietorship firm
• Loan against mortgage of land and building located in metro, urban, semi-urban, properties located in select rural areas and properties allotted by government/semi-government authorities, agencies like Industrial Development Authority, Small Scale Development Authority, Special Economic Zones, Industrial Estates like Textile parks, etc. , and approved financial institutions
• The scheme shall be applicable for account risk rated up to moderate risk only

For MSE Vijeta

• Applicants can be individuals, proprietorship concern, partnership firm, LLP, corporate bodies
• In case of partnership firm, majority of partners should be women and in case of companies the management should be controlled by women.

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For Laghu Udhyami Credit Card Scheme

• Applicant should have satisfactory dealings with the bank for past 3 years
• Total aggregate limit including the one under the scheme should not be more than Rs 10 lakh
• Applicants should have continuous satisfactory dealings for at least 3 years but not having any liability

For Doctor’s Choice

• Individuals/proprietorship/partnership/companies/trust are eligible
• All qualified registered medical practitioners in any branch of medical science such as Allopathy, Ayurveda, Unani,, dental and Homeopathy having a practical experience of the business

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For Canara Caravan

• Applicants can be individuals/firms/companies/trusts/institutions/associations
• Existing transport operators having an experience of 3 years or more in the same business
• At least 5 new vehicles or minimum loan amount of Rs 25 lakh is required
• Income Tax assesse
• Transport operators holding national/state route permit and other necessary permits/license/approvals

For Canara Contractors Scheme

• MSME units engaged in contractor/sub-contractor activity
• Types of contractors: Civil, electrical, mining, mechanical and construction contractors and sub-contractors

For Canara MSME Expo

• Export applicants under MSME sectors having regular credit limits and satisfactory track record with the bank for the last 3 years
• Applicants with minimum export turnover of Rs 1 crore during the immediate preceding year are eligible
• Accounts that are risk rated, credit risk rating up to moderate risk and are classified as standard assets

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Canara Bank Business Loan Fees and Charges

For Mudra Loans

For Other MSME Loans

Documents Required for Canara Bank Business Loan

Canara Bank has not specified the documents required for availing business loans. However, the documents required may vary depending on the loan facility to be availed and nature of the business.

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