Please Note: Canara Bank is not a Paisabazaar partner. Offers would be from partner banks/NBFCs only.
Canara Bank offers Mudra Loans under PMMY to meet business related term loan and working capital requirements. The Bank helps to fund the unfunded MSMEs by offering credit facilities in form of Mudra Loans. The maximum loan amount offered under Mudra Yojana is up to Rs. 10 lakh that can be repaid within 7 years.
Click here to download Application form for Mudra Loan offered by Canara Bank
Canara Bank Mudra Loan – Features – 2023
Interest Rate | Based on the applicant’s profile and business requirements |
Type of Loan | Term Loan / Working Capital Loan |
Collateral/Security | Not Required |
Loan Amount | Maximum up to Rs. 10 Lakh |
Guarantee Cover | Eligible accounts to be covered under Credit Guarantee Fund for Micro Units |
Repayment Tenure | Up to 7 years |
Margin | 15% – 25% |

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Eligibility Criteria
To avail Canara Bank Mudra Loan under PMMY (Pradhan Mantri Mudra Yojana) applicant must meet the following eligibility criteria:
- Minimum age should be above 18 years and the maximum up to 65 years
- Good repayment capacity with no previous loan defaults with any financial institutions
Eligible Entities
Non-Corporate Small Business Segment (NCSBS) comprising of 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.
Also Know: How the EMI is calculated in a business loan from the bank?

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Types of Mudra Loan
Canara Bank offers three types of Mudra loans which are divided on the basis of loan amount offered. The scheme name and amount offered is given below:
Mudra Loan Scheme | Amount |
Shishu | Up to Rs. 50,000 |
Kishore | Between Rs. 50,000 & Rs. 5.00 Lakh |
Tarun | Between Rs. 5.00 Lakh & 10.00 Lakh |
1. Shishu
Shishu scheme of Canara Bank Mudra Loan is for those applicants who want to avail loans up to Rs. 50,000. This amount is beneficial to customers who want to start a new business.
2. Kishore
Kishore scheme can be availed by those customers who need a loan amount over Rs. 50,000 but less than Rs. 5 lakh. It’s perfect for those businesses that have already been established but want to expand. The money can be used to hire staff, purchase equipment, and so on.
3. Tarun
Tarun scheme allows customers to apply for the maximum loan amount offered under Mudra Loan which is Rs. 10 lakh. This allows the customer to expand their business quickly by meeting all the demands of a growing business.
Comparison of Business Loan Interest Rates offered by Top Banks/NBFCs – 2023
Bank/NBFCs | Interest Rate | |
Axis Bank | 14.95% - 19.20% p.a. | Apply Now |
Bajaj Finserv | 9.75% - 30% p.a. | Apply Now |
Flexiloans | 1% per month onwards | Apply Now |
HDB Financial Services Ltd. | Up to 36% p.a. | Apply Now |
HDFC Bank | 10% - 22.50% p.a. | Apply Now |
IDFC First Bank | 10.50% p.a. onwards | Apply Now |
Indifi | 1.50% per month onwards | Apply Now |
Kotak Mahindra Bank | 16% - 26% p.a. | Apply Now |
Lendingkart | 12% - 27% p.a. | Apply Now |
Mcapital | 2% per month onwards | Apply Now |
NeoGrowth Finance | 19% - 24% p.a. | Apply Now |
Tata Capital | 12% p.a. onwards | Apply Now |
UGRO Capital | 9% - 36% p.a. | Apply Now |

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Documents Required
The following documents are required to apply for any Canara Bank Mudra Loan scheme:
- Duly filled application form with passport-sized photographs
- KYC documents of the Applicant: Voter’s ID card, Passport, Driving license, PAN Card, Aadhar card, Utility Bills (Water and Electricity)
- Bank Statement of last 12 months
- Company establishment certificate
- Proof of belonging to SC/ST, OBC, or any minority group, if applicable
- Any other document required by the bank
Also Check – Mudra Loan Interest Rates offered by other leading Banks and NBFCs

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FAQs
Q. Who can apply for Canara Bank Mudra Loan?
Ans. Applicants must be Indian citizen who runs a business or wants to establish a business in the MSME sector. Moreover, applicants must be engaged in manufacturing, service, trade, or agricultural activities other than farming.
Q. How can I check my Mudra loan application status in Canara Bank?
Ans. To check your Mudra loan application status, you shall have to dial the Toll-Free or Customer Care number of Canara bank or need to personally visit the bank branch.
Q. Is the overdraft facility of up to Rs 5000 covered in the MUDRA scheme?
Ans. No, there is no overdraft facility covered in this scheme.
Q. What is the repayment tenure of the Canara Bank Mudra Loan?
Ans. Canara Bank Mudra Loan must be repaid within 7 years in form of EMIs.
Q. Are all the loans are covered under Credit Guarantee Scheme?
Ans. No, not every type of business loan is covered under CGTMSE. It’s a type of SME loan offered to existing businesses and start-ups.
Q. Can I submit the Mudra loan application form online?
Ans. Generally, applicants need to download the form to fill and submit it at the nearest bank branch offering a Mudra loan. However, there are few banks that accept online filling and submission of Mudra forms.