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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.
|Canara MSME Vahan||This loan scheme is designed for businesses to buy commercial vehicles
|Canara MSME Contractor||This loan scheme is meant for contractors and sub-contractors
|Canara Mahila Vikas||This is a loan scheme launched especially for women entrepreneurs.
|Canara GST||This GST loan scheme is designed to provide credit for working capital requirements.
|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.
|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
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%|
|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.
- 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.