Canara Bank MSME Expo Loan

Looking for MSME Loan for Exporters from Canara Bank?

You have landed at the right place. This page contains all the information you will need on Canara Bank’s Canara MSME Expo Business Loan.

Canara Bank MSME Expo Business Loan Scheme for Exporters

This loan helps exporters in the Micro, Small and Medium Enterprises (MSME) sector purchase software or hardware for fashion designing, finance their foreign travels for business and participation in inland and international trade fairs. This is a term loan scheme.

Features of Canara MSME Expo Business Loan

Why this Loan?

  • The loan is meant for exporters under the MSME sector
  • The term loan can be availed to purchase hardware/software for fashion designing, undertaking business-related travel abroad, for participation in Trade Fairs in India and abroad
  • The loan quantum is directly related to the export turnover of the borrower as well as the purpose of the loan

Loan Amount

  • The maximum loan amount is Rs. 50 lakh subject to the export turnover of the borrower
  • The maximum loan amount for participation in Trade Fairs and Exhibitions is capped at Rs. 25 lakh per Fair/Exhibition

Interest

  • Working Capital Loans up to Rs. 2 lakh: Repo Rate Linked Lending Rate (RLLR) + 1.05%. As of February 2020, the RLLR of Canara Bank is 8.05% which brings the effective interest rate to 9.10%
  • Term Loans up to Rs. 50,000: RLLR + 1.30%. As of February 2020, this means the effective interest rate is 9.35%
  • Term Loans from Rs. 50,000 up to Rs. 2 lakh: RLLR + 1.55%. As of February 2020, the effective interest rate will be 9.60%
  • All MSME Loans Above Rs. 2 lakh up to Rs 1 crore: Depends on the Credit Risk Rating
  • All MSME Loans Above Rs. 1 crore up to Rs 5 crore: Depends on the value of Immovable Property mortgaged, value of Approved Securities and/or Internal Risk Rating/Grade
  • All MSME Loans Above Rs. 5 crore: Depends on the External Risk Rating/Grade by External Assessment Institutes

Repayment

  • The repayment period for this loan is 3 years including the moratorium period
  • The moratorium for this loan is 3 months

Security Needed

  • Loans up to Rs. 10 lakh: CGTMSE coverage is mandatory
  • Loans Above Rs. 10 lakh: CGTMSE coverage or immovable property in the form of Land and Building equivalent to100% of the loan amount

Eligibility

  • The borrower should be an exporter and classified as an MSME
  • This loan can only be availed for purchase of hardware/software for designing clothes, for business trips abroad, and participation in domestic or international trade fairs and exhibitions, among others

Borrower Contribution to Total Cost (Margin Money)

  • Canara Bank takes 15% to25% margin for these loans

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

Processing Charges

  • As of February 2020, the actual processing charges on this loan is not available on the bank’s website

Service Charges

  • Loans up to Rs. 5 lakh: The bank does not levy service charges for this loan amount
  • Loans Above Rs. 5 lakh: The borrower has to pay 0.75% of loan amount up to Rs. 75,000 for Term Loans. The minimum service charge is Rs. 3,750

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]