Loan Scheme for Financing Traders Under MSE Against Negotiable Warehouse Receipts of Agricultural Commodities

This page contains all the information you will need on Canara Bank’s Business Loans for Financing MSE Traders Against Negotiable Warehouse Receipts of Agricultural Commodities.

Canara Bank Business Loan Scheme for Financing Traders Under MSE Against Negotiable Warehouse Receipts of Agricultural Commodities

This loan helps Financing Traders under Micro and Small Enterprise Sector to provide finance against Negotiable Warehouse Receipt issued by accredited warehouses. The maximum loan amount is Rs. 5 crore.

Features of Loan Scheme for Financing Traders Under MSE Against Negotiable Warehouse Receipts of Agricultural Commodities

Why this Loan?

  • This short-term loan is meant for Financing Traders under Micro and Small Enterprise Sector to provide finance against Negotiable Warehouse Receipt issued by accredited warehouses
  • The bank offers collateral-free loan up to Rs. 25 lakh

Loan Amount

  • The minimum loan amount is Rs. 5 lakh
  • The maximum loan amount isRs.5 crore

Interest

  • The bank offers a concession of 0.50% on this loan in the applicable ROI as per extant guidelines
  • Working Capital Loans up to Rs. 2 lakh: Repo Linked Lending Rate (RLLR) + 1.05%
  • Term Loans up to Rs. 50,000: RLLR + 1.30%
  • Term Loans from Rs. 50,000 up to Rs. 2 lakh: RLLR + 1.55%
  • 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 up to 12 months provided that the repayment period is one month less than the declared shelf-life in the warehouse receipt

Security Needed

  • The bank asks for collateral security equivalent to more than 25% of the loan amount

Eligibility

  • The borrower should be a Financing Trader dealing in agriculture produce and satisfy the MSE definition
  • The borrower should be able to prove 3 years of satisfactory existence in the business and filed IT Return for the last 3 years established with GST Registration
  • The borrower should have existing units with satisfactory dealings for one year with Canara Bank or other banks subject to risk rating
  • Approved commodities. As of February 2020, the list of commodities eligible for this loan is not available on the bank’s website. Please get in touch with the bank for details

Borrower Contribution to Total Cost (Margin Money)

  • Canara Bank takes 20% to 45% of the assessed value as 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.

Processing Charges

  • There are no processing charges for this loan

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 0.75% of loan amount up to Rs. 75,000 for Term Loans. The minimum service charge is Rs. 3,750 for Term Loans
  • Loans Above Rs. 1 crore: The borrower has to pay 1% of loan amount up to Rs. 7.5 lakh for Term 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]