Please Note: Canara Bank is not a Paisabazaar partner. Offers would be from partner banks/NBFCs only.
Canara Bank Mudra loan is offered at interest rates based on the guidelines of prevailing MSME loans. Besides offering credit or funding facilities, it also offers Mudra loans to individuals, business owners, Micro, Small, and Medium Enterprises (MSMEs), and other business entities engaged in the services, manufacturing, and services sectors. Collateral-free Mudra loans are offered for loan amount up to Rs. 10 lakh with repayment tenure of 5 years.
Click here to download Application form for Mudra Loan offered by Canara Bank
Canara Bank Mudra Loan – Features – 2022
Interest Rate | Based on the applicant’s profile and business requirements |
Collateral/Security | Not Required |
Loan Amount | Up to Rs. 10 Lakh |
Processing Fee | Up to Rs. 5 Lakh – Nil and Above Rs. 5 Lakh – Rs. 500 onwards |
Repayment Tenure | Up to 5 years |
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
- Existing customers with a decent track record for last 2 years (both conduct of account with financing branch and financials of the applicant unit)
- New customers subject to satisfactory OPL from their existing bankers
- New units subject to satisfactory market opinion on the promoters
Eligible Entities
- Individuals, Proprietorships, Partnerships, and Self Help Groups (SHGs)
Non-eligible Entities
- Private limited company, Hindu Undivided Family (HUF), and Trusts
- Units whose Risk rating is High and/or grading as per scoring norms is Higher/Highest
Also Know: How the EMI is calculated in a business loan from the bank?
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.
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
Comparison of Interest Rates on Business Loan Offered by Top Banks/NBFCs in 2022
Bank/NBFCs | Interest Rate | |
IIFL Finance | 11.75% – 25.75% p.a. | Apply Now |
HDFC Bank | 11.90% – 21.35% p.a. | Apply Now |
FlexiLoans | 1% per month onwards | Apply Now |
ZipLoan | 1% – 1.5% per month (Flat ROI) | Apply Now |
Axis Bank | 14.25% – 18.50% p.a. | Apply Now |
IDFC First Bank | 14.50% p.a. onwards | Apply Now |
Kotak Mahindra Bank | 16% – 19.99% p.a. | Apply Now |
Fullerton Finance | 17% – 21% p.a. | Apply Now |
Bajaj Finserv | 17% p.a. onwards | Apply Now |
RBL Bank | 17.50% – 25% p.a. | Apply Now |
ICICI Bank | 18% p.a. onwards | Apply Now |
Indifi Finance | 1.5% per month onwards | Apply Now |
Lendingkart Finance | 1.5% – 2% per month | Apply Now |
Tata Capital Finance | 19% p.a. onwards | Apply Now |
NeoGrowth Finance | 19% – 24% p.a. | Apply Now |
Hero FinCorp | Up to 26% p.a. | Apply Now |
Also Check – Mudra Loan Interest Rates offered by other leading Banks and NBFCs

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Canara Bank – CGTMSE scheme
Purpose | Funding support to SMEs without Collateral or Security |
Eligibility | Existing and New SMEs are eligible to avail loans up to Rs. 2 crore without any security |
Max. amount coverage | Up to Rs. 2 crore (Both fund based and non-fund based activities) |
Waiver | Waiver of CGTMSE Cover for loan limits above Rs.10 Lakh up to Rs. 2 crore by accepting securities of 75% of the loan limit |
Annual Guarantee Fee (AGF) | 1.00%, 1.35%, 1.50, 1.80, 2.00% depending upon the category of the borrower, region, quantum of finance, etc. is to be borne by the borrower |
Bank’s incentives under CGTMSE | Bank offers 0.25% rebate on interest for loans covered under CGTMSE scheme up to Rs. 2 crore. (Exclusions advised under various schemes) |

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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 3 years to 5 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.