Business Loans from Canara Bank
Being one of the largest public sector banks in India, Canara Bank offers a range of business loans to different segments of its customer base. As of April 2020, the bank offers four business loans, each suitable for different types of businesses.
The four business loans from Canara Bank are:
- Term Loan for Businesses
- Business Loan for Working Capital
- Business Loan for Infrastructure Financing
- Business Loan for Export Finance
Canara Bank Term Loans for Businesses
The loan helps businesses carry out different business and trading activities right from acquiring land and building to purchasing machinery and vehicles. All projects are eligible for this loan as long as they are technically feasible and economically viable.
Features of Canara Bank Term Loans for Businesses
Why this Loan?
- This Canara Bank Term Loans can be taken for all manufacturing, processing, repairing, business and trading projects and activities
- The loan is extended in different forms based on the borrower requirements such as all rupee loans, foreign currency loans, Deferred Payment Guarantees, etc.
- The repayment schedule is set based on a range of factors such as Cash Generation and Repayment capacity of the borrower, Debt Service Coverage Ratio, etc.
- The security needed for this loan is decided based on the risk perception after checking the borrowers’ profile and other lending norms of the bank
Canara Bank Business Loan for Working Capital
The loan helps businesses finance their everyday operations such as for investment in current assets, purchase of raw materials, salary payments, power charges, etc. This a perfect loan scheme for businesses that need help during periods of reduced business activity or while waiting for receipt of payment after completing projects.
Features of Canara Bank Working Capital Business Loan
Why this Loan?
- The Canara Bank Working Capital loan can be taken for all projects and activities related to running the business on a day-to-day basis
- The loan is extended in different forms based on the borrower requirements such as Inventory Limits (Pre-Sales), Finance Against Receivables (Post Sales), etc.
- The security needed for this loan is decided based on the risk perception after checking the borrowers’ profile and other lending norms of the bank
Canara Bank Business Loan for Infrastructure Financing
This loan helps businesses pay upfront for building infrastructure. These types of loans are characterised by a large outlay of funds and longer periods of repayment. The bank has signed Memorandum of Understanding (MOU) with India Infrastructure Finance Company Limited (IIFCL) to enable the flow of funds for these projects.
Features of Canara Bank Infrastructure Financing Business Loan
Why this Loan?
- The loan is meant for you if your business needs funds to build infrastructure projects such as highways, bridges, etc.
- The Canara Bank Infrastructure Financing business loan is considered under consortium arrangement with India Infrastructure Finance Company Limited (IIFCL)
- The repayment period for each loan is set on a case-to-case basis depending on factors such as the nature of project, quantum of loan, repayment capacity of the borrower, etc.
- The security needed for this loan is decided based on the risk perception after checking the borrowers’ profile and other lending norms of the bank
Canara Bank Business Loan for Export Finance
This loan helps businesses pay for pre-shipment, post-shipment, and other activities right from sourcing, manufacturing or converting semi-finished into finished goods and services to importing raw materials and capital goods. The bank also offers Foreign Bank Guarantee and Foreign Letters of Credit to help businesses dealing in export run their operations smoothly.
Features of Canara Bank Export Finance Business Loan
Why this Loan?
- The Canara Bank Export Finance scheme is meant for you if your business needs funds for any activity directly related to your export business whether it is pre-shipment or post-shipment. Please get in touch with the bank to get a list of all activities eligible for this loan
- The repayment period for each loan is set on a case-to-case basis depending on factors such as the nature of project, quantum of loan, repayment capacity of the borrower, etc.
- The security needed for this loan is decided based on the risk perception after checking the borrowers’ profile and other lending norms of the bank
Interest Rate for Canara Bank Business Loans
- The interest rate for the Canara Bank business loans depends on various factors such as quantum of loan, type of business, risk rating, nature of project, repayment period, structure of debt, etc.
Eligibility for Canara Bank Business Loans
- Individuals, Proprietors, Partnership Firms, Private Limited and Public Limited Companies can apply for these loans
Documents Needed for Individuals
- Loan Application Form duly filled and signed by the applicant and co-applicant, if any
- Two Passport Size Photographs of applicant and co-applicant
- Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card/PAN Card Issue Letter is must
- Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
- Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
- Income/Banking Proof: Last 6 months Bank Account Statement of applicant and co-applicant, Loan Statement of Running Loans, Latest Closed Loan NOC, Net Worth of the applicant and co-applicant
- Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
- For term loans: Project report with details on product choice, market survey, projection of production and sales, infrastructural needs, etc.; projected cash and fund flow statement for the repayment period; and copies of all licenses and permits wherever applicable
- A4 size copies of the aforementioned documents must be self-attested with blue ink
Documents Needed for Proprietorship and Partnership Firms
- Loan Application Form duly filled and signed
- Partnership Deed and Partnership Registration Certificate
- ID Proof of the Firm: Firm PAN Card or PAN Issuing Letter
- Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
- Income Proof: CMA Data and Project Report, Debtors and Creditors Certificate, GST Return, Last 3 years ITR of applicant and co-applicant, Audited or CA Certified Computation of Income/Trading Account/Profit and Loss Account/Balance Sheet, Annual Audit Report and Tax Audit Report if audited, Form 16A if applicable, Net Worth of applicants, co-applicants and guarantors
- Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account
- Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
- Other Relevant Documents: Partnership’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References
- For Term Loans Only: Project report with details on product choice, market survey, projection of production and sales, infrastructural needs, etc.; projected cash and fund flow statement for the repayment period; and copies of all licenses and permits wherever applicable
- All A4 size copies of the aforementioned documents must be self-attested with blue ink
Documents Needed for Private Limited and Public Limited Companies
- Application Form duly filled and signed
- Company ID Proof: Company’s PAN Card
- Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
- Business Proof: AOA and MOA, Company Incorporation Certificate, Business Commencement Certificate, Board Resolution, CA/CS verified Share Holding Pattern, ROC Annual Return, DIN Certificate, List of Directors on Company Letter Head, GST Number, Form 32 in case of Director Change
- Income Proof: CMA Data and Project Report, Last 3 Years ITR Acknowledgement copy of Company and all Directors, Last 3 Years Annual Credit Report or Tax Audit Report with Article 3CB, Article 2D, Article 3CD, TDS Certificate/Form 16A, Net Worth Certificate
- Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account
- Security: Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
- Other Relevant Documents: Company’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References
- For term loans only: Project report with details on product choice, market survey, projection of production and sales, infrastructural needs, etc.; projected cash and fund flow statement for the repayment period; and copies of all licenses and permits wherever applicable
- All A4 size copies of the aforementioned documents must be self-attested with blue ink
Reference Facts
- Canara Bank Website: www.canarabank.com and www.canarabank.in (net banking)
- Headquarters: Bengaluru, Karnataka
- Call Centre Toll-Free Number: 1800 425 0018