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Canara Bank Mudra Loan

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Canara Bank offers Mudra loan facility of up to Rs 10 lakh to self-employed individuals, partnerships and self-help groups for raising finance for meeting their business requirements. Prospective applicants can avail Canara Bank Mudra Loan in the form of term loan and/or working capital loan facility

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Updated: 04-10-2024 09:48:04 AM

Canara Bank Mudra Loan Highlights 2024
Interest Rate
  • MSME Manufacturing and Services (up to Rs 2 lakh):
    • For Working Capital Loan: 10.30% p.a.
    • For Term Loan: 10.55% to 10.80% p.a.
  • MSME Manufacturing and Services (above Rs 2 lakh): 10.65% to 15% p.a.
Loan Amount
  • Shishu: Loans up to Rs 50,000
  • Kishore: Loans from Rs 50,001 to Rs 5 lakh
  • Tarun: Loans from Rs 5 lakh to Rs 10 lakh
Loan Tenure
  • Working Capital Loan: Up to 1 year
  • Term Loan: Repayable in maximum 5 to 7 years in monthly or equated monthly instalments
  • The lender may provide repayment holiday of 2 to 3 months wherever necessary
Margin
  • Up to Rs 25,000: Nil
  • Above Rs 25,000: 15 to 25% (30% where the borrower provides book debts as primary security)
Security
  • Primary: Assets created out of the loan are treated as primary security in the form of hypothecation of moveable assets and/or mortgage of immovable property and existing business assets
  • Collateral: No collateral security or third party guarantee is required in case of Canara Bank Shishu Mudra Loan

Note: Interest Rates as on 4 October 2024

Canara Bank Mudra Loan Interest Rates

Canara Bank offers Mudra Loans at interest rates starting from 10.30% p.a. The Mudra loan interest rates provided on schemes on are as follows:

Product Rates*
MSME Manufacturing and Services (up to Rs 2 lakh)
  • For Working Capital Loan: 10.30% p.a.
  • For Term Loan: 10.55% to 10.80% p.a.
MSME Manufacturing and Services (above Rs 2 lakh) 10.65% to 15% p.a.

*Note: Liquidity premium of 0.40% p.a. applicable for term loans with repayment tenures of above 1 year and up to 5 years

Fees and Charges for Canara Bank Mudra Loan

Canara Bank has not specified the fees and charges for its Mudra loan schemes. However, lenders offering Mudra loans usually levy processing fees, part-prepayment/foreclosure charges, late payment fees, etc.

Type of Canara Bank Mudra Loans

Shishu Mudra Loan

Purpose: Canara Bank Shishu Mudra Loan is a short term-loan facility that enables borrowers procure funds to manage their liquidity crunch

Loan amount: Rs 10,000 to Rs 50,000

Loan tenure: 1 year to 3 years

Security: Hypothecation of the assets created out of the loan. The Credit Guarantee Fund for Micro Units (CGFMU) provides coverage for the loan.

Canara Bank Mudra Loan Eligibility Criteria

The eligibility criteria for Canara Bank Mudra Loans are as follows:

  • Individuals, proprietorships, partnerships, self-help groups are eligible for availing this Mudra loan scheme
  • Private limited companies, Hindu Undivided Family (HUF) and trusts are not eligible to avail this loan facility
  • Existing customers of the lender with satisfactory track record of last 2 years (both in terms of conduct of account with the financing branch and business unit’s financials)
  • New customers provided their existing banks gives a satisfactory opinion letter
  • New units provided the market opinion of their promoters is satisfactory
  • Units with risk rating of ‘High’ and/or grading of higher/highest, as per the scoring norms, are not eligible to avail this loan
  • The loan applicant should not be a defaulter with other lender(s)
  • In the absence of 3rd party guarantee, lender may ask for its borrower’s asset & liability statement, including that of its directors and partners to know the net-worth

Eligibility for Shishu Mudra Loans

  • This scheme is available for Udyam registered individuals and proprietary firms
  • Minimum Age: 25 years
  • Maximum Age: 55 years.
  • Satisfactory Credit history as per the lender’s policy

Documents Required for Canara Bank Mudra Loan

The documentation for Canara Bank Mudra Loans are as follows:

  • Customer ID proof along with the NF998 MSME application
  • Address Proof of both promoters and business unit
  • Financial papers for last 2 years with ITR and projections of next 1 year
  • License/permissions
  • Details of Guarantor with proof of assets
  • Project Report containing details of technical & economic viability
  • Sales achieved in the current financial year up to date of submitting the application

For Shishu Mudra Loan

  • Aadhar card
  • PAN card
  • Udyam Registration Certificate
  • Bank statement
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