Looking for a Business Loan for Women-run MSE Business?
You have landed at the right place. This page contains all the information you will need on Canara Bank’s business loan for Micro and Small Enterprises run by women.
Canara Bank MSE Vijeta Loan
This loan helps women running Micro and Small Enterprises fulfil their Working Capital needs. The minimum loan amount for this loan is Rs. 10 lakh and the maximum loan amount is Rs. 2 crore. Partnership firms are also eligible for this loan if majority of the partners are women.
Features of Canara MSE Vijeta Loan
Why this Loan?
- The loan is meant for businesses in the MSE sector run by women to finance their capital requirements. All MSE businesses where the management is controlled by women and partnerships where a majority of partners are women are eligible for this loan
- This loan can be availed as a term loan or Working Capital by way of Overdraft facility
Loan Amount
- The maximum loan amount is Rs.2 crore
Interest
- The interest rate for this loan is defined as “1-year MCLR of Canara Bank + Strategic Premium ranging from 1.30% to 1.55%”. The actual Strategic premium applicable is decided by the bank based on the internal risk rating of the borrower. MCLR refers to the Marginal Cost of Funds based Lending Rate, which is the minimum lending rate at which a bank is allowed to extend a credit facility or loan
Repayment
- These loans need to be repaid in up to 7 years after the moratorium ends. The repayment moratorium for this loan is not mentioned on the bank’s website. Please get in touch with the bank for details
Security Needed
- The primary security for this loan is pledging of assets created out of the bank’s finance
- Canara Bank asks for CGTMSE coverage for this loan or collateral security equivalent of at least 50% of the total loan amount
Eligibility
- Individuals, Proprietors, Partnership firms, LLPs and corporate bodies are eligible for this loan as long as the business is managed by women. In the case of partnerships, a majority of partners must be women and in the case of corporate bodies, the management must be controlled by women
Borrower Contribution to Total Cost (Margin Money)
- Canara Bank takes a 20% margin for these loans
Note: Margin money refers to the amount the borrower contributes to the overall amount required. The bank will cover the rest.
Service Charges
- Loans up to Rs. 5 lakh: The bank does not levy service charges on Working Capital Loans or Term Loans for loan amount up to Rs. 5 lakh
- Loans above Rs. 5 lakh up to Rs. 1 crore: The borrower has to pay Rs. 100 per lakh of loan amount up to Rs. 10,000 for Working Capital Loans and 0.75% of loan amount or up to a maximum of Rs. 75,000 for Term Loans. The minimum service charge is Rs. 500 for Working Capital Loans and Rs. 3,750 for Term Loans
- Loans Above Rs. 1 crore: The borrower has to pay Rs. 150 lakh up to a maximum of Rs. 7.5 lakh for Working Capital Loans and 1% of loan amount up to a maximum of Rs. 7.5 lakh for Term Loans. The minimum service charge is Rs. 15,000 for Working Capital 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 Issuing 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
- 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
- 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 (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
- All A4 size copies of the aforementioned documents must be self-attested with blue ink
Reference Facts
- Canara Bank Website: www.canarabank.com, www.canaramsme.com (website for MSME) and www.canarabank.in (net banking)
- Headquarters: Bengaluru, Karnataka
- Call Centre Toll-Free Number: 1800 425 0018
- Email for MSME Loans: [email protected]