Canara Bank offers business loans such as MSME and SME loans, empowering entrepreneurs to propel their businesses to new heights. These loans can be utilized for various purposes such as working capital, expansion, equipment purchase, and more. The bank offers competitive interest rates, flexible repayment options, and various other benefits to borrowers.
Read till the end to explore the specific types of business loans offered, along with their eligibility criteria and application process for Canara Bank Business Loan.
Canara Bank Business Loan Highlights
Canara Bank MSME loans are designed to assist businesses in the manufacturing and service sectors, offering the option of using property mortgages or approved securities as collateral. Here are the highlights of the business loan offered by Canara Bank:
| Loan Amount |
|
| Purpose | Business loans to meet the needs of MSME borrowers involved in the manufacturing and service sectors, with the option to utilize property mortgage and/or approved securities as collateral. |
| Loan Tenure |
|
| Target Group | Micro, Small & Medium Enterprises(Manufacturing/Services). |
Canara Bank Business Loan Interest Rates & Other Charges
Canara Bank offers competitive interest rates and transparent fee structures for their business loans, ensuring that businesses can access the necessary financial support with clarity. Here is the breakdown of interest rates and charges for Canara Bank Business loans:
| Interest rate | As applicable by the lender |
| Processing Fee | Up to 1.5% of the loan amount |
| Documentation Charges |
|
| Inspection charges | Up to ₹2,500 per quarter+ OPE |
| Prepayment Charges | 2% will be collected in the prepaid amount |
| Service Charges |
|
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Canara Bank Business Loans Eligibility Criteria
Canara Bank offers business loans with specific eligibility criteria to cater to the diverse financial needs of various entities. Here are the eligible entities for Canara Bank business loans:
- MSME Units, including Individuals and Partnership Firms (except for partnership firms where HUF is a partner), and Companies (excluding NBFCs).
- Traders, Businessmen, Professionals, Self-employed persons, Limited Liability Partnerships (LLPs), and Proprietary firms are also eligible.
Documents Required for Canara Bank Business Loans
When applying for a Canara Bank MSME loan, it's important to provide the necessary documentation to support the application. Here are the key documents required for the application process:
- Customer identification proof along with the NF998 MSME application.
- Address proof of the unit and promoters.
- Licenses/permissions.
- Financial papers for the last 3 years, including ITR and projections.
- Details of guarantor with proof of assets.
- Stock statement.
When applying for an unsecured business loan, it is a good practice to maintain a good credit score.
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The business loans are offered as per the government launched schemes. Check more on MSME Loan, PMEGP, CGTMSE, Udyogini, GECL, Emergency Credit Line Scheme, Standup India Scheme & Mahila Samridhi Yojana from the linked pages.
Types of Business Loans Offered By Canara Bank
Canara Bank business loans cater to a wide spectrum of business needs, providing flexible and customized financial solutions. Here are the types of business loans offered by Canara Bank:
| Loan Type | Purpose | Loan Amount |
|---|---|---|
| Canara GST | Working capital loans after GST implementation | ₹10 Lakhs to ₹10 Crores |
| Canara MSME Vahan | Financing both new (fuel-based/electric) and second-hand (fuel-based only) commercial vehicles, including LCV/MCV/HCV, operating on any permitted energy source as authorized by State/Local authorities. |
|
| Canara Caravan | To provide financing for new vehicles, including small, light, medium, and heavy commercial vehicles, as well as passenger vehicles such as trucks, tankers, trailers, tippers, buses, luxury buses, and other passenger vehicles. | ₹25 lakhs to ₹5 Crores |
| Canara Mahila Vikas | To address the business-related requirements of women involved in Micro, Small, and Medium Enterprises, including retail traders, such as the acquisition or construction of business premises, machinery, equipment, vehicles, and working capital needs. | ₹10 Lakhs to ₹5 Crores. |
| Canara MSME Smart Professional | To provide loans to professionals for the acquisition or construction of office premises, purchase of machinery, equipment, furniture,, as well as for the expansion and modernization of existing office premises. Additionally, the financing includes need-based working capital limits in the form of secured overdrafts. | Minimum Loan Amount: Above Rs.10.00 Lakhs. Maximum Loan Amount :
|
| Canara Easy Equipment Finance | To offer equipment loans to contractors (EPC and all other contractors except trade contractors/suppliers of equipment) for the acquisition of construction equipment. |
|
| Canara MSME Contractor | To offer working capital loans (fund-based/non-fund-based) in the form of a running limit (secured overdraft), FLC/ILC BG for working capital requirements, and term loans for the acquisition of new equipment/office premises to eligible contractors/sub-contractors, both existing and prospective. | Working Capital: ₹25 Lakhs to ₹25 Crores Term Loan: up to ₹10 Crores |
| Pradhan Mantri MUDRA Yojana | To fulfill business-related term loan and working capital needs. |
|
| Doctor's Choice | To offer credit facilities for the business needs of registered medical practitioners engaged in manufacturing and services in the medical field, secured against mortgaged property/properties and/or approved securities. | Up to ₹5 crore |
| Shishu Mudra Loans | To offer a hassle-free, short-term credit facility for micro-units to address liquidity challenges in their business operations. | ₹10,000 to ₹50,000 |
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Curious to know more on the different types of business loan offered? Check more on working capital loan, equipment purchase loan, medical equipment loan, construction equipment loan and commercial vehicle loans from the linked pages.
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Features & Benefits of Canara Bank Business Loan
Canara Bank business loans have features designed to provide a seamless and convenient application process. Whether you're an existing customer or a new applicant, the bank makes it easier to access the funds you need.
Here are the features and benefits of Canara Bank business loan:
- Easy and hassle-free loan application process with Canara Bank business loans.
- Existing customers may not require documentation, while new applicants can apply with minimal documentation.
- The loan can be utilized for various purposes such as capital requirements or expenditures.
- Business loans of up to Rs 30 crore can be availed, subject to the nature of the business.
- Extended loan tenure of up to 10 years.
- Low processing fee of up to 1.5% of the loan amount charged by Canara Bank, which is competitive compared to other lenders.
How to Apply for Canara Bank Business Loan
The application process for a Canara Bank business loan is systematic and requires the applicant to submit relevant documents. Below are the detailed steps that an applicant needs to follow to apply for a business loan from Canara Bank:
- Visit the Canara Bank website and go to the Download Centre. Download the relevant loan application form.
- Fill out the loan application form with your personal and business details. Provide accurate information.
- Gather and prepare all required documents to submit along with the application form. This may include identity proof, address proof, business registration papers, financial statements, etc.
- Submit the duly filled loan application form and documents at your nearest Canara Bank branch. Meet the bank representative to submit the form.
- The bank representative will review your application and verify your submitted documents. They will guide you regarding the loan approval procedure and any other additional steps required.
- Wait for loan approval formalities. Stay in touch with the bank for the status of your application. Provide any other additional details if required for faster processing.
- Receive the loan amount upon successful approval of your business loan application.
Steps to Apply for Business Loan on Buddy Loan
Follow the steps below to apply for a business loan through Buddy Loan:
- Step 1: Visit buddyloan.com or Download & install the Buddy Loan app (Android or iOS).
- Step 2: Open the business loan application page. Enter your mobile number and OTP.
- Step 3: Specify the desired loan amount and email. Next, choose the Business Loan option.
- Step 4: Choose if you have a Business Proof (Yes/ No)
- If ‘Yes’ (If you have a business proof), enter your business and personal details.
Or - If ‘No’ (If you do not have a business proof), choose the profession type and enter your details.
- Step 5: Provide income details and Click the ‘Submit’ button
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Canara Bank Business Loan Customer Care Number
Canara Bank offers several customer care numbers for business loan inquiries, depending on your needs and location. Here are some options:
Toll-Free Numbers (India): 1800 425 0018/ 1800 103 0018/ 1800 208 3333/ 1800 3011 3333
International Calls- +91-80-22064232: This is the non-toll-free number for international calls regarding Canara Bank business loans.
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Frequently Asked Questions
Yes, Canara Bank offers a variety of business loans for different needs and sectors.
You can visit the Canara Bank website and use their online eligibility calculator for specific loan schemes. Alternatively, contact customer care or visit a branch for expert guidance.
MSME Star is a secured loan scheme for micro, small, and medium enterprises, offering term loans, working capital, and non-fund-based facilities.
The maximum loan amount for MSMEs varies depending on the scheme and purpose, but can reach up to Rs. 30 crore.
Interest rates for business loans at Canara Bank are dependent on various factors like scheme, risk assessment, and collateral. They usually follow a floating rate based on the RLLR (repo-linked lending rate).
Processing fees for Canara Bank business loans are up to 1.5% of the loan amount and can vary depending on the loan amount and scheme. You can contact the bank for specific details.
Benefits of the Canara MSME Loan Scheme include competitive interest rates, flexible repayment options, collateral flexibility, dedicated relationship managers, and access to additional services like financial guidance and insurance.
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