Canara Bank Business Loan – Eligibility, Interest Rate, And How to Apply

Canara Bank Business Loan

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Canara Bank is an Indian public sector bank under the control and ownership of Ministry of Finance, Government of India. Canara Bank was founded by Shri Ammembal Subba Rao Pai, a great visionary and philanthropist, in July 1906. Canara Bank is one of the largest Indian government owned banks.

Canara Bank Business Loan

Canara Bank provides business loans to the individuals who have been in the business for a minimum of 3 years. To apply for the loan from Canara Bank the applicants should be 21 years of age and should be not older than 65 years of age at the time of loan maturity. The bank offers various business loan products to its MSME borrowers such as MSME Gold Loan, MSME CAN BEML, MUDRA Canara Atithi, Canara GST, Canara Udyog etc.

Also Read: Axis Bank Business Loan

What do you mean by Business Loan?

Business Loan is a loan which can be availed by any person who wants to start their own business or any individual who wants to expand their business.

There are two types of business loans offered by the bank –

1. Secured loans – This is a loan where individuals take a loan with collateral. Here the rate of interest is less.

2. Unsecured loan/ Small business loans – This loan a loan where businesses take a loan without any collateral. Here the interest rate is on higher side.

Benefits and Features of Business Loan

• Helps to start and grow your own business
• Helps in expanding your business
• Strengthens business credit score
• No collateral required
• Attractive and competitive interest rate
• Simplified documentation process
• Higher loan disbursal amount

Advantage of Canara Bank Business Loan

• Easy and simple documentation
• Lower rate of interest
• No collateral required for minimum loan value of 1 crore
• Loans are disposed of within a reasonable time
• Can be taken in the form of an overdraft or term loan according to your needs

Types of Canara Bank Business Loan

Mentioned below are some of the Business Loan Schemes offered by Canara Bank –

Canara MSME Gold Loan Scheme

Canara Bank MSME Gold loan scheme can be availed by the individuals against gold ornaments/jewellery for financing various business requirements.

MSME CAN BEML

MSME CAN BEML is a term loan, which can be availed for construction, mining equipment’s from BEML, for service and manufacturing activities etc. You can get up to loan amount of upto  3 crore.

MUDRA Canara Atithi

Mudra Canara Atithi loan can be availed to fulfil the working capital needs and term loans requirements for purchase of equipment’s required for setting up the businesses engaged in food and beverages sector.

Canara Smart Professionals

Canara Smart professionals scheme is offered to MSME professionals to purchase or construct office premises, acquire machineries, equipment’s, furniture’s, including expansion and modernization of existing units.

Canara Udyog

Canara Udyog loan facility fulfils all the credit requirements of MSME borrowers in manufacturing sector and ancillary business units. In this scheme you can get loan amount up to Rs 10 crore.

Interest Rate, Loan Amount, and Charges

Canara Bank Business Loan Eligibility

• Self-employed individuals
• Partnership firms involved in the business of Manufacturing, Trading, or Services
• Proprietors
• Pvt Ltd Co.
• Individuals with business registration
• Individuals who have been in the current business for a minimum of 3 years
• The applicant should be at least 21 years at the time of applying for the loan and should not be older than 65 years at the time of loan maturity

Documents Required

• Id proof
• Address proof
• Business proof
• Audit report
• Passport sized photographs
• Dully filled application form
• Bank statement for the last 6 months
• Proof of continuation
• Income Tax Returns for the last 2 years
• Other mandatory documents

Canara Bank Business Loan EMI Calculator

EMI Calculator helps you to calculate your monthly EMI that you will have to pay towards your loan amount. It eases the calculations and saves time. The calculator helps you to get the real results in the minimum time. To use this calculator is very simple, you only need to enter the basic details such as loan amount, tenure etc., and you will get the result instantly.

How to Apply for Canara Bank Business Loan

You can apply for Canara Bank Business Loan through both online and offline mode. To apply via online you need to visit the website of Canara Bank and fill up the loan application form, enter all the basic details and submit the form. If you want to apply offline you will have to visit the bank branch and the bank representative will guide you through the whole application process.

FAQs

1. What is a business loan?

Ans: Business Loan is a loan which can be availed by any person who wants to start their own business or any individual who wants to expand their business.

2. What are the two types of business loans offered by the banks?

Ans: Two types of business loans offered by the bank are –

1. Secured loans – This is a loan where individuals take a loan with collateral. Here the rate of interest is less.

2. Unsecured loan/ Small business loans – This loan a loan where businesses take a loan without any collateral. Here the interest rate is on higher side.

3. What is the maximum business loan amount in Canara Bank?

Ans: Maximum business loan amount in Canara Bank is Rs 20 crores.

4. What is the maximum loan repayment tenure in Canara Bank?

Ans: Maximum loan repayment tenure is up to 7 years.

5. Who is eligible for business loan?

Ans: The following peoples are eligible for business loan:

• Self-employed individuals
• Partnership firms involved in the business of Manufacturing, Trading, or Services
• Proprietors
• Pvt Ltd Co.
• Individuals with business registration
• Individuals who have been in the current business for a minimum of 3 years
• The applicant should be at least 21 years at the time of applying for the loan and should not be older than 65 years at the time of loan maturity

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