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Development of new businesses play a major role in the economic growth of a country. A business loan can make your business dreams a reality. Of the many business loan options in the market, Canara Bank Business Loans is one that is easily accessible and affordable. Business loans offered by the Canara Bank are in the form of MSME loans. It is offered to both individuals and enterprises. Canara Bank Business Loans can cater to your diverse needs, including expanding to new markets, buying new equipment, upgrading existing facilities, or meeting the requirements of your working capital. Both self-employed individuals and enterprises can avail Canara Bank Business Loans.

Canara Bank Business Loan Features & Benefits

  • Simple Procedure: You can have a quick and easy loan application experience with very minimal documentation.

  • For Any Purpose: The loan sanctioned can be used for purposes like working capital requirement and capital expenditure.

  • High Loan Amounts: You can avail up to Rs. 10 Crores as Canara Bank Business Loan depending on the loan type.

  • Extended Loan Tenure: Loan tenures ranging from 1 year to 7 years can be opted for the Canara Business Loans.

  • Low Processing Fees: Canara Bank charges very low processing fee for business loans compared to other banks. Upto 1% of the loan amount can be charged as the processing fees.

Canara Bank Business Loan Eligibility

You need to fulfil the Canara Business Loan eligibility criteria to avail a business loan. Take a look at the eligibility criteria here.

Nationality

Indian citizen

Age

Minimum: 21 years

Maximum: 65 years

Profession

  • Self-employed individuals

  • Private Ltd. Co.

  • Proprietors

  • Partnership Firms

Business Stability

A minimum business track record of 3 years.

Canara Bank Business Loan Interest Rates

Canara Bank Business Loan interest rates under the category of MSME loans depend on the applicant’s business requirements and profile. It varies from person to person and depends on different factors. Take a look at the comparison of business loan interest rates offered by various banks.

Bank

Business Loan Interest Rate

Canara Bank

10.50% onwards

Kotak Mahindra Bank

14% onwards

HDFC Bank

16% onwards

Axis Bank

17% onwards

ICICI Bank

18% onwards

IDFC First Bank

20% onwards

*Interest rates and charges are subject to market conditions and banks' discretion.

Factors Affecting Canara Bank Business Loan Rates

Some of the factors affecting Canara Bank Business Loan interest rates are -

1. Loan Amount: The interest rates offered on Canara Bank Business Loan depends upon the loan amount you apply for. Interest rates will be much lower if you apply for a higher loan amount.

2. Type of Business: The business type or whether the business comes under Proprietorship, Partnership, Private Limited or Public Limited plays a major role in determining the interest rate.

3. Time in Business: If you have significant business experience, you can avail the business loan at very low interest rates. Minimum business existence of 3 years will help you avail a Canara Business Loan easily.

4. Revenue: If you have a higher monthly revenue, you can avail the business loan at very low-interest rates. Loans are provided to entities whose annual turnover is found satisfactory by the bank.

5. Credit Score: To get a loan from Canara Bank, you should have a good credit score. The higher the credit score of the company, the higher the chances of getting a Canara Business Loan at the lowest interest rates.

Canara Bank Business Loan EMI Calculator

A Canara Bank Business Loan EMI Calculator helps you calculate the monthly Canara Business Loan EMI. You can use any of the Business Loan EMI Calculators available online. Enter the principal amount of the business loan, interest rate and the tenure of your loan in the online calculator and click on ‘Calculate’. Your monthly EMI will be calculated and displayed. Along with this, you can also analyse the total amount you have to pay, including the principal amount and interest. It is always advisable to calculate your EMI and compare it with different loan schemes. This will help you choose the best one.

How to Apply for Canara Business Loan

 You can apply for a Canara Business Loan both online and offline. For all offline procedures, you have to visit the nearest Canara Bank branch. For online procedures, follow the below-mentioned steps.

  • Visit the Canara Bank Official website.

  • From the menu bar, click on ‘FORMS AND APPLICATIONS’.

  • A drop-down menu appears and from that, click on ‘APPLICATION FORMS TO LOANS FOR MSMEs’.

  • Download the form and fill it carefully.

  • Keep the relevant documents handy.

  • Visit your nearest Canara Bank and submit the physical copy of your application form and the rest of the documents to the bank staff.

  • The bank staff will verify and check the documents and help you understand and complete the whole business loan process.

Documents Required for Canara Bank Business Loan Application

Here is the list of documents required to apply for Canara Bank Business Loan.

  • PAN Card

  • Identity Proof - Driving Licence/PAN Card/Passport/ Voter ID

  • Address Proof - Telephone/Water/Gas/Electricity Bills/Rental agreement

  • Bank statement of the previous 6 months

  • Proof of continuation -Trade Licence/Establishment/ITR/Sales Tax Certificate

  • Latest ITR along with computation of income, Balance Sheet and Profit & Loss account for the previous 2 years, after being CA Certified/Audited

  • Other Mandatory Documents - Sole Prop. Declaration or Certified Copy of Partnership Deed, Certified true copy of Memorandum & Articles of Association (certified by Director), Board resolution (Original)

Types of Business Loan Offered by Canara Bank

Canara Bank offers business loans in the form of Term Loan, Working Capital Loan and Pradhan Mantri Mudra Yojana (PMMY).

 1Term Loan

The term loan is offered for land, building, vehicles or machinery purchase. Working capital finance is one of the elements of the term loans, and they are offered to industrial and non-industrial lenders. It is used for activities that they carry under manufacturing, processing, or repairing any part of their function of the organisation.

2. Working Capital Finance

Working Capital Finance can be used to help in the present functioning of the firm, like crediting the employees’ salary, adding to the raw material etc. Depending on the purpose for which the loan amount is used, the security that the bank needs for the amount being lent varies.

3Pradhan Mantri Mudra Yojana (PMMY)

To help the MSMEs to grow in producing, trading and in the service sectors, the PMMY Yojana is developed. The loan amount offered under this is a minimum of Rs. 50,000 and a maximum of Rs. 10 lakh.

Disclaimer: The information provided here is for informational purposes only. Please visit the official website and carry out your research before you avail any services.

FAQs on Canara Bank Business Loan

  • ✔️What are the interest rates offered by Canara Bank?

    The Canara Bank Business loan interest rate currently ranges between 10.50% to 18%.

  • ✔️What are the different categories of loans offered?

    Canara Bank offers three categories of business loans. They are term loans, working capital finance and Pradhan Mantri Mudra Yojana (PMMY).

  • ✔️What is the maximum loan amount offered by Canara Bank for Start-ups?

    A maximum loan amount of Rs. 2 crores is offered by Canara Bank for Start-ups.

  • ✔️How to check Canara Bank Business Loan status?

    You can check your Canara Bank Business Loan status by reaching out to their customer care at 1800-425-0018.

  • ✔️How to calculate Interest/EMI on Business Loan?

    You can use a Canara Bank Business Loan EMI Calculator to calculate the interest and monthly Canara Business Loan EMI.

  • ✔️What is an MSME loan in Canara Bank?

    A type of business loan through which individuals, MSME, SMEs, and Startups can avail the required capital to begin or maintain a venture is called MSME loan. Canara Bank offers various MSME loans for starting new enterprises.

  • ✔️What are the types of loan facilities available in Canara Bank of Micro, Small and Medium Enterprises?

    The loan facilities available in Canara Bank of Micro, Small and Medium Enterprises are term loans, working capital finance and Pradhan Mantri Mudra Yojana (PMMY).

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