Canara Bank Mudra Loan

Note: Interest Rates as of 2 April 2025

Canara Bank Mudra Loan Interest Rates

Canara Bank offers Mudra Loans at interest rates ranging from 10.05% p.a. to 11.75% p.a.

Fees and Charges for Canara Bank Mudra Loan

Canara Bank has not specified the fees and charges for its Mudra loan schemes. However, lenders offering Mudra loans usually levy processing fees, part-prepayment/foreclosure charges, late payment fees, etc.

Type of Canara Bank Mudra Loans

Shishu Mudra Loan

Purpose: Canara Bank Shishu Mudra Loan is a short term loan facility that enables borrowers to procure funds to manage their liquidity crunch

Loan amount: Rs 10,000 to Rs 50,000

Loan tenure: 1 year to 3 years

Security: Hypothecation of the assets created out of the loan. The Credit Guarantee Fund for Micro Units (CGFMU) provides coverage for the loan.

Canara Bank Mudra Loan Eligibility Criteria

The eligibility criteria for Canara Bank Mudra Loans are as follows:

• Individuals, proprietorships, partnerships and self-help groups are eligible for availing this Mudra loan scheme
• Private limited companies, Hindu Undivided Family (HUF) and trusts are not eligible to avail this loan facility
• Existing customers of the lender with a satisfactory track record of the last 2 years (both in terms of the conduct of account with the financing branch and business unit’s financials)
• New customers provided their existing banks gives a satisfactory opinion letter
• New units provided the market opinion of their promoters is satisfactory
• Units with a risk rating of ‘High’ and/or grading of higher/highest, as per the scoring norms, are not eligible to avail this loan
• The loan applicant should not be a defaulter with other lender(s)
• Loan under the ‘Tarun Plus’ category is offered only to entrepreneurs who have availed and successfully repaid previous loans under the ‘Tarun’ category

Eligibility for Shishu Mudra Loans

• This scheme is available for Udyam-registered individuals and proprietary firms
• Minimum Age: 25 years
• Maximum Age: 55 years
• Satisfactory credit history as per the lender’s policy

Documents Required for Canara Bank Mudra Loan

The documentation for Canara Bank Mudra Loans is as follows:

• Customer ID proof along with the NF998 MSME application
• Address Proof of both promoters and business unit
• Financial papers for the last 2 years with ITR and projections for the next 1 year
• License/permissions
• Details of Guarantor with proof of assets
• Project Report containing details of technical & economic viability
• Sales achieved in the current financial year up to date of submitting the application

For Shishu Mudra Loan

• Aadhar card
• PAN card
• Udyam Registration Certificate
• Bank statement