Types of MSME Loans Offered by Canara Bank
Looking for a Small Business Loan from Canara Bank?
You have landed at the right place. This page contains all the information you will need MSME loans from the bank.
Small businesses play an important role in the economy of the country. These enterprises have different needs than larger corporations. Thus, they need special schemes for financial assistance to meet their capital needs. Canara Bank, one of the largest public sector banks in India, offers a range of loans specifically designed for Micro, Small and Medium Enterprises (MSMEs).
Different Types of MSME Loans Offered by Canara Bank
The different types of MSME loans offered by the bank are:
Canara Loan Scheme for Financing Start-ups and Early Stage Units
As the name suggests,this loan helps start-ups and Early Stage Units in the Manufacturing and Services sectors promoted by or proposed to be promoted by graduates of reputed education institutions such as IIM, IIT, ISB, NIT, etc. to meet their capital expenditure and working capital requirements. The maximum loan amount sanctioned by the bank is Rs. 2 crore for Start-ups and Rs. 5 crore for Early Stage Units under this loan scheme.
Canara Bank Loan Scheme for Financing Traders Under MSE Against Negotiable Warehouse Receipts of Agricultural Commodities
This Canara Bank loan helps Financing Traders in the Micro and Small Enterprise (MSE) Sector to provide finance against Negotiable Warehouse Receipt issued by accredited warehouses. The maximum loan amount sanctioned by the bank under this loan is Rs. 5 crore.
Canara MSME Credit Against Property
Canara Bank offers this loan scheme to help MSME businesses in the manufacturing and services sectors to get a loan against the security of unencumbered land and building so they can meet their financial needs. The maximum loan amount sanctioned by the bank is Rs. 10 crore for manufacturing units and Rs. 5 crore for service units.
Canara MSME Vahan Loan
Small businesses in the manufacturing and service sectors can avail this loan to invest in vehicles as business assets or to buy new vehicles excluding Goods Carriers for business use. The maximum loan amount sanctioned by Canara Bank is Rs. 25 lakh or up to 90% on-road cost of the vehicle, whichever is lower.
Canara MSE Vijeta Loan
Women running Micro and Small Enterprises (MSE) can use funds from this loan to fulfil their working capital needs. The minimum loan amount for this loan is Rs. 10 lakh and the maximum loan amount is Rs. 2 crore. Partnership firms are also eligible for this loan if the majority of partners are women.
Canara Bank MSE Smart Loan Scheme
This is a special loan scheme for self-employed professionals such as Architects, Civil Engineers, CA and CS, to purchase an office, equipment, undertake construction of office, expansion of units, etc. The bank also offers working capital loan under this scheme. Doctors cannot avail this loan scheme as Canara Bank has a special loan scheme for them.
Canara Bank Doctor’s Choice Loan
Medical practitioners of Allopathy, Homeopathy, Unani and Ayurveda can get this loan to meet their working capital requirements right from setting up a clinic / nursing home / hospital / pathology lab to purchasing of equipment / vehicles / ambulance. The maximum loan amount available under this loan scheme is Rs. 5 crore.
Canara Bank Mudra Loan
This loan helps Non-corporate Small Business Segment get funds to meet their working capital needs. This scheme falls under the Pradhan Mantri Mudra Yojana (PMMY) and Canara Bank follows guidelines issued under PMMY to offer this loan to small businesses.
Canara Bank Industry-Specific Loans
Some of the industry-specific loans from Canara bank are:
- Canara Overdraft for Manufacturing Units: This loan scheme helps manufacturing businesses in the MSME sector meet their working capital needs. The maximum loan amount for this loan is Rs. 3 crore
- Canara Caravan: This loan scheme helps Goods and Passenger Transport Operators finance new vehicles for business use. The maximum loan amount is Rs. 5 crore
- Canara Contractor’s Scheme: Contractors and sub-contractors in the Civil, Mining and Construction sectors (and fitting the MSME definition) can avail this loan to meet their fund-based and non-fund based working capital requirements
- Canara Bank MSME Expo: Exporters under the Micro, Small and Medium Enterprises sector can avail this loan to purchase software or hardware for fashion designing, financing foreign travels for business and participation in national and international trade fairs
- Canara Bank MSME Loan for Pre-shipment Credit to Exporters: This loan helps exporters get the financial assistance they need for pre-shipment activities on the basis of Letter of Credit for export from India
- Canara Bank MSME Loan for Post-shipment Credit to Exporters: Exporters can get the financial assistance they need for post-shipment activities till the realisation of export proceeds through this loan scheme. This helps them continue running their business operations until the payment is made by the buyer
Types of Corporate Business Loans Offered by Canara Bank
Canara Bank also offers business loans to large conglomerates. These loans fall in the Corporate Business Loan category. Here are the loans offered by Canara Bank for this segment:
- Term Loan
- Working Capital Loan
- Infrastructure Finance Scheme
- Export Finance
If you want to know more details about these loans, please check out our Canara Bank Corporate Business loans page.
A Final Word
Now that you know about the different types of small business loans offered by the Canara Bank, you might want to know which is the right loan option for your business. Please check our Canara Bank MSME Loans page for details.
Disclaimer: This article is for informational purposes only. All details provided here are correct as on the publishing date of this post. The bank may decide to discontinue a loan scheme and introduce another loan scheme based on the current needs of their customers. Please check with the bank and other official sources before taking any investment or related decisions.