Looking for MSME Loan for Doctors from Canara Bank?

You have landed at the right place. This page contains all the information you will need on Canara Bank’s Business Loans for Doctors who need a loan or working capital to set up or expand their practices.

Canara Bank Doctor’s Choice Loan Scheme

This loan helps medical practitioners meet their capital expenditures or working capital expenses right from setting up a clinic, nursing home, hospital, pathology labs, etc. to purchase of equipment, vehicles, ambulance, etc. The maximum loan amount is Rs. 5 crore for this loan.

Features of Doctor’s Choice Loan Scheme

Why this Loan?

  • The loan is meant for medical practitioners who need financial assistance in fulfilling their capital or working capital needs
  • Qualified Medical practitioners from different branches of medicine such as Allopathy, Homeopathy, Unani, Ayurveda, etc. are eligible for this loan if they have experience in running the business. Individuals, Proprietors, LLPs, Trusts and Companies can also avail this loan

Loan Amount

  • Term Loan: The maximum loan amount is Rs.5 crore
  • Working Capital Loan: The maximum loan amount is up to 20% of Working Capital needs or Rs. 50 lakh, whichever is lower

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% bringing the effective interest rate at 9.10%
  • Term Loans up to Rs. 50,000: RLLR + 1.30%. As of February 2020, this makes the effective interest rate at 9.35%
  • Term Loans from Rs. 50,000 up to Rs. 2 lakh: RLLR + 1.55%. As of February 2020, this brings the effective interest rate at 9.60%
  • All MSME Loans Above Rs. 2 lakh up to Rs 1 crore: Depends on the Credit Risk Rating of the borrower
  • 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

  • Term Loans: These loans need to be repaid within 7 years after the moratorium ends
  • Working Capital Loans: These loans need to be repaid within 2 years subject to an annual review
  • The repayment moratorium for this loan is not mentioned on the bank’s website

Security Needed

  • As of February 2020, this information is not available on the bank’s website

Eligibility

  • The borrower should be a qualified registered medical practitioner in any branch of medical science including Allopathy, Homeopathy, Ayurveda, Unani, Dental, etc. with experience of running business
  • Individuals, Proprietorship, Partnership, Trust and Companies are also eligible
  • The loan amount can be used for setting up clinics, purchase of equipment, expansion of unit, purchasing vehicles for business use, meeting business trip expenses, working capital needs, etc.

Borrower Contribution to Total Cost (Margin Money)

  • All Loans up to Rs. 25,000: No margin money
  • Term Loans Above Rs. 25,000: Minimum 25% of the total loan amount if the loan is used for the construction of business premises. 20% of loan amount if the loan is used for other purposes
  • Working Capital Loans Above Rs. 25,000: 20% of the loan amount

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

Processing Charges

  • Loans up to Rs. 5 lakh: Nil
  • Loans above Rs. 5 lakh: The borrower has to pay Rs. 100 per lakh of loan amount

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 with a maximum of up to Rs. 10,000 for Working Capital Loans and 0.75% of loan amount with a maximum of up to 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 per lakh with a maximum of up to Rs. 7.5 lakh for Working Capital Loans and 1% of loan amount with a maximum of up to 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]