COVID-19 Loans from Canara Bank

Looking for a COVID Loan to meet your short-term financial needs? Take a look at Canara Bank’s COVID Loan Schemes for Retail Customers and Businesses.

Canara Bank COVID-19 Loans

As of May 2020, Canara Bank is offering two loan schemes to help its customers deal with the financial aftermath of the novel coronavirus. They are:

  1. Canara Credit Support to COVID-19 Affected Customers for Retail Customers
  2. Canara Credit Support to COVID-19 Affected Customers for Businesses

We give you important details of each of these COVID-19 loans below. If you need more details about a particular COVID-19 loan scheme, please get in touch with us at [email protected]

Canara Bank – Canara Credit Support to COVID-19 Affected Customers (for Retail Customers)

This loan helps retail customers of Canara Bank get some relief from the negative effects of COVID-19 on their finances and meet their personal needs. This short-term loan scheme is only in force up to 30th June 2020.

Features of Canara Credit Support (CCS) to COVID-19 Affected Customers

  • As of May 2020, the details such as loan amount, interest rate, repayment period, etc. pertaining to this loan are not available on the bank’s website. We suggest talking to a bank representative to get these details

Canara Bank – Canara Credit Support to COVID-19 Affected Customers (for Businesses)

This loan helps corporate and MSME customers of Canara Bank get some relief from the negative effects of COVID-19 on their finances. This short-term loan scheme is only in force up to 30th June 2020.

Features of Canara Credit Support (CCS) to COVID-19 Affected Customers

  • Quantum of Loan: The bank sanctions 10% to 35% of the existing working capital loan up to a maximum of Rs. 150 crore under the Canara Bank Credit Support (CCS) to COVID-19 Affected Customers
  • Interest Rate: The interest rate applicable to this loan is the Repo Linked Lending Rate (RLLR) + 0.75% where RLLR is 7.30% as of May 2020, bringing the effective interest rate at 8.15%. For accounts linked with Marginal Cost of Funds based Lending Rate (MCLR), the interest rate is MCLR + 0.50% where MCLR is 7.85% as of May 2020, bringing the effective interest rate at 8.35%
  • Repayment Period: The loan must be repaid within 24 months with a maximum moratorium period of 6 months from the date of the first disbursement
  • Eligibility: Existing business customers enjoying working capital limits with the bank are eligible for this loan provided that the account has never slipped in SMA 2 category. Existing Self-Help Group (SHG) borrowers are also eligible for this loan
  • Security: The bank asks for an extension of charge on primary/collateral security on the existing loan
  • Guarantee: Canara Bank asks for existing guarantee to be continued for this loan

Documents Needed for Individuals (Salaried and Self-employed)

  • 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 for Salaried Professionals: Last 3 months’ salary slip, Form 16 or income tax returns
  • Income/Banking Proof for Self-employed Professionals/Insurance Agents: Computation of income of last 2 years, Balance Sheet, Profit and Loss Account, Registration Certificate, GST Return, Income Tax Challan/ Form 26AS/TDS Certificate, IT Assessment, etc.

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

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

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