Canara Bank Business Loan – Eligibility, interest rates, required documents

Like other leading banks in India Canara Bank also offers different kinds of business loans to enable businesses to grow. The bank offers several loan schemes including:

• Working capital loan
• Aadhar Card loan
• Loan for women entrepreneurs
• Loan for buying vehicles for business purposse, etc.

Here are the eligibility criteria, rates of interest and required documents for some of the popular loan schemes from the Canara Bank.

Eligibility for Canara Bank business loan

Eligibility for a business loan depends on the kind of business loan you are seeking from Canara Bank. Here is the eligibility for some of the popular loan schemes:

Canara Bank business loan scheme	Eligibility criteria
Canara Caravan	This loan scheme is targeted to transport operators. Individuals/Firms/Companies/Trusts/Institutions/Associations Existing transport operators (goods or passengers) with experience of 3 years Transport operators holding necessary route permit and other necessary permits/license/approvals Requirement of minimum 5 new vehicles or minimum loan amount of ₹25 Lakhs
Canara MSME Vahan	This loan scheme is designed for businesses to buy commercial vehicles New or existing businesses can be individuals, partnership firms, sole proprietorship, private limited companies/public limited companies/LLPs/Trusts/Societies, Should be registered transport operators under MSME – manufacturing and services industries including retail and traders Should have satisfactory track record with existing banks/FIs. Income Tax and/or GST Assessee (Personal & Business)
Canara MSME Contractor	This loan scheme is meant for contractors and sub-contractors New/existing MSMEs engaged in contractor and sub-contractor activities Clients should have satisfactory track records with banks Concerns belonging to a common group are also eligible
Canara Mahila Vikas	This is a loan scheme launched especially for women entrepreneurs. Enterprises owned by women complying with the MSME guidelines Individuals, proprietorship firms, partnership firms, LLPs, corporate bodies owned and managed by women. In case of partnership firm/LLPs/private/public Ltd companies, woman partners’ capital/share capital should be of minimum 51% Minimum credit score of 650 of promoters in their individual capacities Enterprise should be completed at least 2 years of operations
Canara GST	This GST loan scheme is designed to provide credit for working capital requirements. You should be the existing customer of the Canara Bank. GST Return of minimum for the past six months Minimum 75% of turnover reflected in GST return should have been paid through the Canara Bank account. As per the Canara Bank’s internal rating, the borrower should be rates up to Moderate Risk.
Canara MSME Smart Professional	This is loan scheme for purchase/construction of office premises /acquisition of machineries/equipment/furniture/fixtures, including expansion and modernisation of the existing office premises. You should be a professional with minimum experience of 2 years in the business Applicant should have a valid license/certificate to carry out current profession and should be a registered member with respective association The existing professionals/firm should be an assesse under Income Tax and should have a minimum Net Annual Income of Rs.2 lakhs as per latest available ITR
Canara MSME Expo	This loan scheme is designed for the purpose of travelling abroad for business purpose, participation in trade fairs, exhibitions abroad or in India Exporters under MSME sector having regular credit limits and satisfactory track record with the Canara Bank for at least past three years Accounts which are risk rated, the Credit Risk Rating (CRR) up to moderate risk and which are classified as standard assets. Minimum export turnover of ₹100 Lakhs during the immediate preceding year

Note: Eligibility criteria of the loan schemes are subject to change. It is best to understand prevailing eligibility criteria from the Canara Bank.

Rate of interest on Canara Bank business loans

Below are the rates of interest for some of the popular business loan schemes from the Canara Bank.

Loan scheme	Rate of interest
Canara Smart professional	10.9 to 11.50%
MSME Vahan	10.90%
Canara GST	10%
Canara Caravan	ROI as per specific scoring model for the Scheme

Note: The business loan rates of interest are subject to change from time to time. It is best to get information from the bank about the prevailing rate of interest.

Canara Bank business loan: How to apply?

There are two ways to apply for a loan in the Canara Bank – offline and online.

Offline application process:

• You can visit the nearest branch of the Canara Bank and enquire about the loan scheme that is relevant to your business and purpose of loan requirement.
• Get information from the Canara Bank official about the loan scheme, eligibility, documentation, rate of interest, loan repayment methods, etc.
• Get an application form from the bank official.
• Fill in the application form and submit it along with required documents.

Online application:

• Visit Canara Bank’s website for MSMEs
• Click on ‘Apply online’
• A new web page will open. Click on ‘I want to apply for a new loan’.
• The next question would be if you are a resident of India. You can click on ‘Resident Indian’
• A short form will open. Fill in your details including Name, Email ID, mobile number, and date of birth and click on Submit.

Alternatively, you can follow the below steps too.

• Visit the official website – https://canaramsme.in/
• Click on ‘Forms and Applications’.
• Click on Application forms for loans for MSMEs.
• Download the form and print it.
• Fill in the required details.
• Submit it at the nearest branch along with the required documents.

Canara Bank business loan: documents required

Here are some of the commonly required documents for obtaining a business loan from the Canara Bank.

• Aadhaar card
• PAN card
• Bank statements for 6-12 months
• Company’s latest balance sheet and P&L sheet
• GST returns/GST certificate
• Income Tax returns
• Business plan
• Trade licenses
• Udyam registration certificate

Note: The requirement of documents may vary depending on the loan scheme. It is best to get an exhaustive list of required documents from the bank.

Concluding remarks: Tips to apply for a business loan

• Determine the purpose of the loan and the exact amount you require.
• Keep your project report for loan ready so that you can submit if the bank asks.
• Keep digital copies of all required documents ready in your system in case you are applying for a loan online.