Description

Canara Bank is one of the largest public sector banks in India. It offers a multitude of financial products with a lot of features & benefits. The business loan by Canara Bank has been hailed as a reliable and friendly product for a variety of financial needs of businesses. It is offered in the form of MSME loan with affordable rate of interest.

The loan amount &  interest rates depend upon multiple factors such as repayment tenure, loan  amount, company’s financial history, CIBIL score, business type, etc. 

Interest rates of Canara Bank business loan

  • The loan amount is offered from Rs 50,000 to Rs 10 crore. 
  • The rate of interest is from 10.50% to 18% P.A
  • The loan tenure is up to 7 years.
  • The processing fee is 1% of the loan amount. 

The eligibility criteria for Canara Bank business loan

  • The borrower’s age should be between 21 years and 65 years. 
  • The business should be up and running for minimum 3 years. 
  • Self-employed individuals, Partnership firms, Proprietorship firms involved in the Trading, service or manufacturing are eligible to apply for Canara Business loan. 

Types of Canara Bank Business loan

Primarily, there are three types of Canara Bank business loans. 

  1. Canara Bank term loan
  2. Canara Bank working capital loan
  3. Canara Bank Pradhan Mantri Mudra Yojana

Canara Bank term loan

The term loan is widely used for purchasing machinery, vehicles, land or buildings. The loan is offered to both industrial and non-industrial businesses that wish to expand their repairing, processing, or manufacturing unit. The term loan interest rate depends upon various factors such as reimbursement, risk and the capacity to repay the loan. 

Working Capital Loan

The working capital loan focuses on functioning of the company. It could be used to  buy final products, shops, raw material, etc. It could also be used for giving salaries to employees, purchasing new equipment, or to produce products. 

There are various methods to find out the types of loan required by the company. There is Maximum Permissible Bank Finance, Cash Budget System, and turnover methods, depending on the function of the organization. The interest rate depends upon the risk assessment, nature of the firm, pending debs and elements of the loan. 

Pradhan Mantri Mudra Yojana

The PMMY is for small and medium businesses, engaged in producing, trading and service sector, to help them expand their business. The loan is available for MSMEs businesses. The loan amount is offered from Rs 50,000 to RS 10 lakhs, depending upon the business nature. The lender may ask for collateral if there is high risk involved. 

Features of Canara Bank business loan

  • There is no need for collateral for the loan amount up to Rs 1 Crore.
  • The loan is quickly disbursed upon verification completion. 
  • The rate of interest is quite low  as compared to other lenders business loans

Required documents for Canara Bank personal loan

The documents required are divided into three sections. 

  • Business loan for Individuals
  • Business loan for Proprietorship
  • Business loan for Partnership firms
  • Business loan for public and private companies

Business loan for Individuals

  • Proof of identity ( Aadhar card, PAN card, Passport) 
  • Proof of address ( Telephone bill, rental agreement) 
  • Proof of continuity of business
  • Bank statement 
  • Balance sheet for the last 3 years
  • Profit and loss statement for the previous 3 years
  • Income tax returns for the previous 3 years 

Business loan for Proprietorship

  • KYC documents of the owner and the co-applicants, if any
  • PAN Card
  • Audit report for the last 2 financial years
  • Bank statement for the last 6 months
  • Repayment track records for existing loan
  • Property term loan documents

Business loan for Partnership firms

  • Registered partnership deed
  • PAN Card details
  • KYC documents of partners
  • Shop and establishment
  • Bank statement for the last 6 months for all accounts
  • Property documents 
  • Proforma machinery invoice
  • Financial audit report for the last 2 years

Private and Public companies

  • MOA And AOA ( Memorandum of Association and Article of Association)
  • KYC details of directors
  • PAN Card
  • Audit report for the last 2 years
  • Bank statement for the last 6 months
  • Existing facility sanction letter
  • Property documents for property terms loans

How to apply for Canara Bank business loan?

The best way to apply for Canara Bank business loan is by visiting the nearby branch. You can clear all the doubts, get real time information.