Looking for MSME Loan to Purchase Vehicles for Business use 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 Vahan Loan.

Canara MSME Vahan Loan

This loan helps MSME manufacturing and service units to invest in vehicles as business assets or to buy new vehicles (excluding Goods Carriers) for business use. The maximum loan amount is Rs. 25lakh or up to 90% of the On-Road cost of the vehicle, whichever is lower.

Features of Canara Bank MSME Vahan Loan

Why this Loan?

  • The loan is meant for Manufacturing and Services units in the MSME category to purchase vehicles such as two-wheelers, passenger cars, jeeps or vans for business use or as business assets
  • This loan is not meant for buying goods carriers. Canara Bank has a different loan for this purpose

Loan Amount

  • The maximum loan amount for this loan is Rs. 25 lakh or 90% of the on-road value of the vehicle, whichever is lower

Interest

  • The interest rate for this loan is defined as 1-year MCLR of Canara Bank + Strategic Premium of 0.80% (Floating)

Repayment

  • The repayment period is 5 years for two-wheelers and 7 years for four-wheelers
  • The repayment moratorium for this loan is not mentioned on the bank’s website. Please get in touch with the bank for details

Security Needed

  • Loans up to Rs. 10 lakh: The bank asks for CGTMSE coverage of loans up to Rs. 10 lakh
  • Loans Above Rs. 10 lakh: Collateral security equivalent to 100% value of the loan if the borrower does not take cover under CGTMSE

Eligibility

  • Retail traders and other businesses owners of Manufacturing/Service Units under the MSME category are eligible for this loan
  • This loan can only be availed for the purchase of brand new vehicles for business use. Good carriers are not eligible

Borrower Contribution to Total Cost (Margin Money)

  • 10% of the on-road cost of the vehicle

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

Processing Charges

  • Two-wheelers: The borrower must pay minimum of Rs. 250 or 0.25% of the loan amount up to Rs. 1,000 as processing charges for this loan
  • Four-wheelers: The borrower must pay minimum of Rs. 1,000 or 0.25% of the loan amount up to Rs. 5,000 as processing charges for this loan

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]