Canara Bank Caravan Loan

The Canara Bank Caravan Loan is an MSME Loan for Goods or Passenger Transport Operators from Canara Bank.

Canara Bank Caravan Business Loan Overview

This loan helps Goods and Passenger Transport Operators finance new vehicles for their business. The business must have been in operation for at least 3 years. The maximum loan amount is Rs. 5 crore. The interest rate for this loan is linked to the Repo Linked Lending Rate (RLLR) of the Bank with the final rate based on the Internal Credit Risk Rating of the borrower.

Features of Canara Caravan Loan Scheme

Why this Loan?

• The loan is meant for Goods or Passenger Transport Operators who are looking for financing for new vehicles for their business
• The borrower can use this loan to purchase small, medium and heavy commercial vehicles as well as passenger vehicles

Loan Amount

• The minimum loan amount is Rs. 25 lakh or purchase of a minimum of 5 new vehicles
• The maximum loan amount is Rs. 5 crore

Canara Bank Caravan Loan Interest Rates & Concession

• The interest rate for the Canara Bank Caravan Loan is based on the specific scoring model for the Scheme
• The bank offers a 0.25% concession on the interest rate if the proposal scores over 75% on the Internal Credit Risk Rating of the borrower
• Overall, the interest rates for the bank are range-based and depend on the borrower’s Internal Credit Risk Rating score and the security offered against the loans. Here are some interest rates for your reference:
  • Working Capital Loans up to Rs. 2 lakh: Repo Rate Linked Lending Rate (RLLR) + 1.05%. The concession is applied based on the Internal Credit Risk Rating of the borrower
  • Term Loans up to Rs. 50,000: RLLR + 1.30%. The concession is applied based on the Internal Credit Risk Rating of the borrower
  • Term Loans from Rs. 50,000 up to Rs. 2 lakh: RLLR + 1.55%. The concession is applied based on the Internal Credit Risk Rating of the borrower
  • All MSME Loans Above Rs. 2 lakh up to Rs 1 crore: From RLLR + 1.4% to RLLR + 5.75% based on the borrower’s credit risk rating
  • All MSME Loans Above Rs. 1 crore up to Rs 2 crore: Depends on the Internal Risk Rating/Grade and the value of Immovable Property mortgaged or value of Approved Securities. Here is how they are defined:
    • Collateral Value upto 50% of Loan: Interest rate ranges from RLLR + 2.30% to RLLR + 6.00%
    • Collateral Value 51% – 75% of Loan: Interest rate ranges from RLLR + 2.20% to RLLR + 5.80%
    • Collateral Value 76% – 100% of Loan: Interest rate ranges from RLLR + 2.00% to RLLR + 5.60%
    • Collateral Value over 100% of Loan: Interest rate ranges from RLLR + 1.75% to RLLR + 5.30%
  • All MSME Loans Above Rs. 2 crore up to Rs 25 crore: Depends on the Internal Risk Rating/Grade and the value of Immovable Property mortgaged or value of Approved Securities. Here is how they are defined:
    • Collateral Value upto 50% of Loan: Interest rate ranges from RLLR + 1.60% to RLLR + 6.00%
    • Collateral Value 51% – 75% of Loan: Interest rate ranges from RLLR + 1.50% to RLLR + 5.80%
    • Collateral Value 76% – 100% of Loan: Interest rate ranges from RLLR + 1.30% to RLLR + 5.60%
    • Collateral Value over 100% of Loan: Interest rate ranges from RLLR + 1.05% to RLLR + 5.30%
  • All MSME Loans Above Rs. 25 crore: For these loans, the rates range from RLLR + 1.25% to RLLR + 6.00% for accounts that have External Risk Rating/Grade by External Assessment Institutes. If the accounts do not have any external ratings, the rates are similar to the loans from Rs. 2 – Rs. 25 crore
• Concession in Interest Rates
  • Women entrepreneurs get a 0.50% concession on the applicable interest rate for MSME loans
  • There is a concession of 0.25% for loans upto Rs. 1 crore if covered under CGTMSE credit guarantee scheme

Repayment

• These loans need to be repaid within 5 years inclusive of the moratorium period

Security Needed

• The bank asks for hypothecation of the vehicle(s) financed by the bank under this scheme as primary security
• Collateral:
  • Loans upto Rs. 1 crore: Land and/or Buildings that are equivalent to at least 25% of the loan amount or CGTMSE cover
  • Loans over Rs. 1 crore: Land and/or Buildings that are equivalent to at least 25% of the loan amount

Eligibility

• The transport operators applying for this loan must have at least 3 years of experience in the transport operator business
• The loan can be availed for the purchase of a minimum of 5 new vehicles or a loan amount of Rs. 25 lakh
• Transport operators who have necessary national/state route permits and other necessary licenses, permits and approvals

Borrower Contribution to Total Cost (Margin Money)

• Internal Credit Risk Rating Between 40% and 75%: The bank charges:
  • 10% of the cost of chassis,
  • 45% of the cost of the body,
  • 15% of the cost of a fully built model and
  • At least 50% of the cost of insurance and registration cost as margin
• Internal Credit Risk Rating Above 75%: The bank charges:
  • 5% of the cost of chassis,
  • 40% of the cost of the body,
  • 10% of the cost of a fully built model and
  • At least 50% of the cost of insurance and registration cost as margin

Note: Margin money refers to the amount the borrower contributes to the overall amount required. The bank will cover the rest.

Processing and Other Charges

• The information on processing charges is not mentioned by the bank. You will have to talk with the bank representatives when you apply

Service Charges

• The service charges are fixed based on the risk profile of the borrower
• Low Risk Profile: 1% of the loan amount
• Normal or Moderate Risk Profile: 1.25% of the loan amount
• High Risk Profile: 1.5% of the loan amount

Documents Needed for Individuals

• Form: Loan Application Form duly filled and signed by the applicant and co-applicant, if any
• Photos: Two Passport Size Photographs of applicant and co-applicant
• Personal ID Proof: PAN Card/PAN Card Issuing Letter is must. Plus, any one of below:
  • Aadhaar Card
  • PAN Card
  • Passport
  • Driving License
• Signature Proof (Any One):
  • PAN Card
  • Banker’s Verification
  • Driving License
  • 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
• Photocopies: A4 size copies of the aforementioned documents must be self-attested with blue ink

Documents Needed for Proprietorship and Partnership Firms

• Form: Loan Application Form duly filled and signed
• Partnership Formation Documents:
  • Partnership Deed
  • Partnership Registration Certificate
• ID Proof of the Firm: Firm PAN Card or PAN Issuing Letter
• Office Address Proof (any One):
  • 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
  • Last 6 months’ Bank Statement of Applicant and Co-Applicants’ Savings Accounts
• 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
  • Partnership Brochure
  • Business Experience Supporting Documents
  • Business References
• Photocopies: All A4 size copies of the aforementioned documents must be self-attested with blue ink

Documents Needed for Private Limited and Public Limited Companies

• Form: Application Form duly filled and signed
• Company ID Proof: Company’s PAN Card
• Office Address Proof (Any One):
  • 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 Letterhead
  • 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 or 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
  • 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:
  • Company’s Business Profile
  • Promoter/Guarantor’s Profile
  • Corporate Brochure
  • Business Experience Supporting Documents
  • Business References
• Photocopies: All A4 size copies of the aforementioned documents must be self-attested with blue ink