Canara Bank Business Loan
Last Updated : Nov. 2, 2016, 7:37 a.m.
Canara Bank offers business loan to SMEs and MSMEs to accelerate their business and give new heights. The bank provides various business loan schemes to serve different business requirements. The customer can avail a loan of up to₹10 crores for the highest tenure of 7 years. The processing fee is 1% of the loan amount. The loans are charged at the competitive rate of interest. To avail the loan the customer can access the nearest branch office.
Canara Bank Business Loan Details
| Particulars | Details |
|---|---|
| Interest Rate | As applicable by the lender |
| Loan Amount | ₹50,000 – 10,00,00,000 |
| Tenure | 7 years |
| Processing Fee | 1% of the loan amount |
How To Apply
The candidates can apply for a business loan by visiting the nearest branch office. The business loan service is available in all regional offices. The customer dealer will guide you regarding all the procedure.
Canara Bank Business Loan EMI Calculator
To speed up your EMI calculation use the Business Loan EMI Calculator . The calculator helps you get the realistic results in the minimum time. It eases the calculation and saves time. To get the result the user just needs to enter the loan amount, tenor and the rate of interest in the calculator.
For Instance, If an entrepreneur takes a loan of₹90,00,000 for the tenure of 7 years at an interest rate of 9.25%, his EMI would be:
Table Showing EMI, Interest Outgo, and Total Repayment Amount
EMI, Total Interest Outgo, Total Repayment (Interest + Principal)
| Year | Principal | Interest | Balance Amount |
|---|---|---|---|
| 1 | ₹ 9,58,828 | ₹ 7,92,526 | ₹ 80,41,171 |
| 2 | ₹ 10,51,378 | ₹ 6,99,976 | ₹ 69,89,793 |
| 3 | ₹ 11,52,861 | ₹ 5,98,492 | ₹ 58,36,931 |
| 4 | ₹ 12,64,140 | ₹ 4,87,213 | ₹ 45,72,791 |
| 5 | ₹ 13,86,160 | ₹ 3,65,193 | ₹ 31,86,630 |
| 6 | ₹ 15,19,958 | ₹ 2,31,395 | ₹ 16,66,671 |
| 7 | ₹ 16,67,787 | ₹ 84,683 | ₹ 0 |
Features and Benefits
- No collateral is required for the maximum loan value of₹ 1 crore
- Loans are disposed of within reasonable time
- Loans available for the highest value of ₹10 crores
- Lower rate of interest
Canara Bank Business Loan Schemes
The bank offers various business loan schemes to facilitate the functioning of Micro, Small and Medium scale industries under following categories :
- Schemes For Capital Investment
- Schemes For Working Capital
- Schemes For Composite Requirements
- Export Finance Schemes
- Credit Guarantee Fund for Micro and Small Entreprises (CGMSE)
Canara Bank Business Loan Eligibility Criteria:
The list of candidates suitable to apply for Canara Bank Business Loan is given below:
- Individuals
- Proprietorship
- Partnership
- Limited Companies
Canara Bank Business Loan Application Form
The loan application form varies depending upon the quantum of loan applied for under MSME. The application form is available at the nearest branch office. The executive will give the form as per the amount the candidate is applying for.
Documents Required:
Application form with a recent photograph is mandatory to be submitted along with requisite documents :
| Category | Documents Required |
|---|---|
| Individuals | -Proof of Identity (Passport Copy/ Voter ID card/ Driving License/ PAN Card) -Address Proof (Ration card/ Telephone Bill/ Electricity Bill/ Rental agreement / Passport copy/ Bank Passbook or Statement/Driving License) -Age proof (PAN Card, Passport, any other certificate from a statutory authority) -Proof of business existence -Bank Statements (Bank statement / Bank -Passbook for last 6 months) -Profit and loss statement for last 3 years -Balance sheet for last 3 years -Income Tax Returns for last 3 years (for self and business) duly certified by a CA |
| Proprietorship | -KYC Documents of promoter and co-applicants -Shop and establishment certificate/ VAT/ Sales Tax Registration Certificate -PAN Card -Last 2 years financials with audit report -Last 6 months Bank statement of all bank accounts -Existing facility sanction letter/ Repayment Track Record (RTR) of existing loan, if any -Proforma invoice of machinery, in case of Plant & Machinery Loans -Property Documents in case of Property Term Loans |
| Partnership Firms | -Registered partnership deed -KYC of partners -PAN Card of firm and partners -Shop and establishment / VAT/ Sales Tax Registration Certificate -Last 2 years financials with audit report -Last 6 months Bank statement of all bank accounts -Existing facility sanction letter/ Repayment Track Record (RTR) of existing loan, if any -Proforma invoice of machinery, in case of Plant & Machinery Loans -Property Documents in case of Property Term Loans |
| Private and Public Companies | -Memorandum of Association(MOA) / Articles of Association(AOA) -Latest shareholding pattern -KYC of Directors -PAN Card of the Company and Directors -Last 2 years financials with audit report -Last 6 months Bank statement of all bank accounts -Existing facility sanction letter/ Repayment Track Record (RTR) of existing loan, if any -Proforma invoice of machinery, in case of Plant & Machinery Loans -Property Documents in case of Property Term Loans -Declaration that borrower, Company or any of its Directors have not been debarred / black listed / penalized by any Stock Exchanges / SEBI/ RBI. A Declaration that the proposed borrowing is within the limits prescribed u/s 293(1)(d) of the Companies Act, 1956. |
Canara Bank Business Loan Interest Rate
The rate of interest charged by Canara Bank on the business loan is linked to base rate. The rate of interest charged depends on the amount of loan and the nature of business.
Canara Bank Business Loan Interest Rate Table
| Loan Amount (in ₹) | Interest Rate on Short Term Loan (p.a) | Interest Rate on Term Loan (p.a) | ||
|---|---|---|---|---|
| Micro Enterprises | Small & Medium Entreprises | Micro Enterprises | Small & Medium Entreprises | |
| Upto 50,000 | BR + O.50% | BR + 1% | BR +1% | BR + 1.50% |
| Above 50,000 Up to 2,00,000 | BR + 2.50% | BR + 3% | BR + 2.50% | BR + 2% – BR + 3% |
| Above 2,00,000 Up to 2,00,00,000 | Graded rate of interest based on scoring norms and parmeters | Graded rate of interest based on scoring norms and parmeters | ||
| BR + 1.50% to BR + 4.50% | BR + 2.25% to BR + 5% | BR + 1.75% to BR + 4.75% | BR + 2.25% to BR + 5.75% | |
| Above 2,00,00,000 Up to 10,00,00,000 | Graded rate of interest based on Internal Credit Risk Rating BR+ 3.25% to 5.75% Plus applicable Term Premium | |||
| Above 10,00,00,000 | Graded rate of interest based on External Credit Risk Rating BR+ 2.25% to 5.75% Plus applicable Term Premium | |||
Canara Bank Customer Care Number
To get the detailed information about the business loan, contact the customer care division. You can take the advantage of the customer care by considering any of the following means :
Call on Toll- Free Number – 1800 425 0018
Send an e-mail at the ID given on official website
Visit the nearest branch