Looking for MSME Loan from Canara Bank?

You have landed at the right place. This page contains all the information you will need on Canara Bank’s MSE Smart Loans to buy offices, equipment and so on.

Canara Bank MSE Smart Loan Scheme

This loan helps Architects, Civil Engineers, CA, CS, etc. to purchase offices, equipment, construct offices, undertake the expansion of units, etc. Term loans are available for maximum up to Rs. 2 crore for Urban and Metro cities and Rs. 50 lakh for other cities. Working Capital loans are available for up to Rs. 5 lakh.

Features of Canara MSE Smart Loan

Why this Loan?

  • The Term Loan is meant for CA, CS, Architects, Civil Engineers, etc. for purchase or construction of offices, purchase or upgrade of equipment, expansion of units, etc.
  • Need-based Working Capital loans are also available under this scheme

Loan Amount

  • Term Loan: The maximum loan amount is Rs. 2 crore for Urban and Metro cities and Rs.50 lakh for other cities
  • Working Capital Loan: The maximum loan amount is Rs. 5 lakh

Interest

  • Loans up to Rs. 50 lakh: The interest rate for this loan is defined as 1-year Marginal Cost of Funds-based Lending Rate (MCLR) of Canara Bank + Strategic Premium ranging from 1.55% to 1.80%. The actual Strategic premium applicable is decided by the bank based on the internal risk rating of the borrower
  • Loans above Rs. 50 lakh: The interest rate for this loan is defined as 1-year MCLR of Canara Bank + Strategic Premium ranging from 1.80% to 2.05%. The actual Strategic premium applicable is decided by the bank based on the internal risk rating of the borrower

Repayment

  • These loans need to be repaid in up to 5 years or a maximum up to 10 years including the moratorium period. The repayment moratorium for this loan is not mentioned on the bank’s website. We suggest talking to the bank about this when you apply for the loan

Security Needed

  • Prime Security: The Prime Security for this loan are assets created out of the loan amount
  • Collateral Security for Loans up to Rs. 1 crore: CGTMSE coverage is required
  • Collateral Security for Loans not Covered under CGTMSE: Collateral by way of land and building equivalent to at least 25% of the loan amount
  • Personal Guarantee: The bank may ask for a personal guarantee of partners, promoters or directors as required

Eligibility

  • The borrower should be a CA, Architect, Civil Engineers, CS, etc. in the age group of 18-60 years
  • The loan can be availed for purchase or construction of office, purchase or upgrade of equipment, expansion of units, etc.

Borrower Contribution to Total Cost (Margin Money)

  • Canara Bank takes a 25% 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

  • The borrower must pay 50% of the applicable upfront fee

Service Charges

  • Loans up to Rs. 5 lakh: The bank does not levy service charges on Working Capital loans or Term-loans for loan of 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 Rs. 10,000 for Working Capital Loans and 0.75% of loan amount with 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 per lakh with a maximum amount of up to Rs. 7.5 lakh for Working Capital Loans and 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]